Arkansas vs Vermont: Cost of Living, Home Prices & Burlington ANG Base (2026)

Arkansas vs Vermont: Overview

Vermont is one of the most liberal-leaning states in the country politically and one of the most expensive in New England in per-capita terms. Burlington, the state’s largest city, has become increasingly expensive relative to local wages — driven by the University of Vermont, a strong outdoor/tourism economy, and sustained demand from remote workers and second-home buyers. Vermont’s top income tax rate of 8.75% is among the highest in the nation, and its overall cost structure runs significantly above the national average.

For Air National Guard families at Burlington’s 158th Fighter Wing — now operating the cutting-edge F-35A Lightning II — Vermont’s housing costs create real financial pressure relative to Guard pay and BAH. Retirement from the Guard and relocation to Arkansas represents a dramatic improvement in financial position.

Home Prices: Vermont vs Arkansas

Vermont’s statewide median home price has risen to approximately $380,000–$400,000 in 2026 — nearly double Arkansas’s median. The Burlington metro (Chittenden County) runs $450,000–$600,000+. Even the more rural Northeast Kingdom of Vermont, which was historically affordable, has seen prices climb to $200,000–$320,000 as remote workers moved in during the pandemic and have largely stayed.

Central Arkansas median: $190,000–$215,000. A VA-eligible Guard member or retiree purchasing at $215,000 in Central Arkansas saves $165,000–$385,000 versus comparable Vermont markets. The monthly payment difference on $200,000 in loan principal at current rates is approximately $1,200–$1,400/month — year after year.

Income Tax: Vermont vs Arkansas

Vermont has a graduated income tax with a top rate of 8.75% — among the highest in the country and the highest in this state comparison series. Vermont does not offer a blanket exemption for military retirement pay; military pension income is generally subject to Vermont state income tax. Arkansas fully exempts military retirement pay from state income tax — no cap, no age requirement. For a retired O-4 drawing $3,800/month in retirement pay, this difference represents approximately $3,990/year in VT taxes that would be zero in Arkansas.

158th Fighter Wing: Vermont’s F-35A Unit

The 158th Fighter Wing of the Vermont Air National Guard, based at Burlington International Airport, is one of the Air Force’s F-35A Lightning II units — flying the most advanced fighter in the U.S. inventory. The 158th FW has a distinguished combat history and a strong Guard community in the Burlington area. However, housing near Burlington ANG Base — essentially downtown Burlington and Chittenden County — is expensive even by New England standards. Guard technicians and traditional Guardsmen face housing costs that consume a disproportionate share of income compared to Guard compensation.

Families with members who have completed their service commitment and are considering full retirement will find the transition to Central Arkansas particularly advantageous — going from one of the most expensive housing markets in New England to one of the most affordable markets in the country.

Property Taxes: Vermont vs Arkansas

Vermont’s effective property tax rate is approximately 1.82% — the highest of any state in this comparison series and nearly three times Arkansas’s 0.61%. On a $390,000 Vermont home, annual property taxes run approximately $7,100. On a $210,000 Arkansas home, approximately $1,000–$1,300. The property tax gap alone represents $5,800–$6,000/year — before accounting for the home price premium, income tax difference, or overall cost of living spread.

Cost of Living: Vermont vs Arkansas

Vermont’s cost of living index runs approximately 114–118 (national average = 100), driven by housing, healthcare, and general services. Arkansas runs 87–89. The combined effect of home prices, property taxes, income taxes, and general costs means a family maintaining a comfortable Vermont lifestyle could live equivalently in Central Arkansas for approximately $25,000–$45,000 less per year — a life-changing amount of money over a retirement horizon.

Climate and Quality of Life

Vermont’s lifestyle draws are real: skiing, maple syrup, fall foliage, and one of the most beautiful landscapes in the country. Burlington on Lake Champlain is genuinely charming. Winters are harsh — Burlington averages 81 inches of snow per year, with January highs in the upper 20s°F. Arkansas has mild winters (Little Rock January average high: 50°F), hot humid summers, and four distinct seasons. Both states offer genuine quality of life; they’re simply at opposite ends of the cost spectrum.

Who Moves from Vermont to Arkansas?

VT-to-Arkansas moves typically involve: Air National Guard retirees from the 158th FW who want to maximize their retirement purchasing power; remote workers in tech or education no longer tied to Burlington; families with military connections seeking a state that fully exempts military retirement pay; and retirees who want genuine affordability without the extreme winter climate.

Work With a Central Arkansas REALTOR®

Ashley Watters | eXp Realty | Central Arkansas specialist | VA loans & relocations
📞 (501) 951-9200 | ✉️ [email protected] | arkansashousesearch.com