Cabot AR Cost of Living 2026 | Is Cabot Affordable?
⚡ Quick Facts — Cabot AR Cost of Living
Cabot, AR median home price: $220K–$340K. Property tax rate: ~0.61% (Lonoke County). No state income tax on military retirement. Utilities average $130–$170/month. Cost of living approximately 18% below the national average.
Cabot AR Cost of Living 2026
Cabot consistently ranks as one of the most cost-effective cities of its size and quality in the mid-South. With an A-rated school district, rapid commercial growth, and median home prices well below national averages, Cabot delivers suburban lifestyle at a significant discount compared to comparable communities in Texas, Tennessee, or the Carolinas — a fact that drives significant out-of-state relocation.
Housing Costs in Cabot AR
Cabot’s housing market has grown substantially over the past decade but remains affordable by national standards. Median home prices range from $220,000 for a modest 3-bedroom to $340,000+ for newer construction with premium finishes. New construction communities are actively building throughout Cabot and north Lonoke County.
Cabot vs National and Regional Comparisons
| Category | Cabot AR | Conway AR | Greenbrier AR | National Avg |
|---|---|---|---|---|
| Median Home Price | $220K–$340K | $220K–$350K | $270K–$380K | ~$420K |
| Property Tax Rate | ~0.61% | ~0.61% | ~0.58% | ~1.07% |
| Monthly Utilities | $130–$170 | $125–$165 | $120–$155 | ~$200 |
| State Income Tax | Yes (3.9% top rate) | Yes | Yes | Varies |
| Military Retirement Tax | Exempt | Exempt | Exempt | Varies |
| Grocery (vs national) | ~8% below avg | ~8% below avg | ~8% below avg | Average |
Cabot vs Texas — Why Families Relocate
A major driver of Cabot relocation is out-of-state buyers — particularly from Texas — who recognize that Cabot delivers comparable suburban quality at a fraction of the cost. On a $280,000 Cabot home, property taxes run approximately $1,708/year. An equivalent home in the Dallas-Fort Worth suburbs at 1.8% would generate $5,040/year in property taxes — a savings of over $3,300 annually that compounds over the life of ownership.
What is the cost of living in Cabot AR?
Cabot’s cost of living is approximately 18% below the national average. Median home prices are $220K–$340K, property taxes run ~0.61%, and utilities average $130–$170/month. Military retirement pay is exempt from Arkansas state income tax.
Is Cabot AR cheaper than Texas?
Yes — significantly. Comparable suburban homes in Cabot cost 30–40% less than Dallas-Fort Worth equivalents, and property taxes are roughly one-third of Texas rates. Arkansas also exempts military retirement pay from state income tax.
See What Your Budget Buys in Cabot
Ashley Watters — eXp Realty ICON Agent and AY Magazine’s Best of 2026 Real Estate Agent — turns research into results. Get a personalized shortlist of homes matched to your budget, timeline, and must-haves across Cabot.
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