Retiring Military in Arkansas | VA Loans, Tax Benefits & Best Communities Near LRAFB

Why Retiring Military Members Choose Central Arkansas

Central Arkansas has become a top destination for retiring military families — and for good reason. Arkansas does not tax military retirement pay, home prices remain well below the national average, and the Little Rock VA Medical Center provides comprehensive healthcare for veterans. Combined with a low cost of living, four seasons, and a strong sense of community, it is an ideal place to plant roots after service.

Arkansas Military Retirement Tax Benefit

Arkansas exempts all military retirement pay from state income tax. This means your full retirement check stays in your pocket — a significant financial advantage over many other states.

Use Your VA Loan Benefit One Final Time

Your VA loan benefit does not expire and can be used multiple times. Many retiring service members use their VA loan for a final home purchase — with $0 down payment, no private mortgage insurance (PMI), and competitive interest rates. Ashley Watters is a VA loan specialist who has helped dozens of retiring military members use this benefit in Central Arkansas.

Little Rock VA Medical Center

The Eugene J. Towbin Healthcare Center (Little Rock VA) is a full-service VA Medical Center located in North Little Rock. It provides primary care, mental health services, surgery, and specialty care for eligible veterans throughout Central Arkansas and the surrounding region.

Best Communities for Retiring Military Near Little Rock AFB

Jacksonville, Cabot, Sherwood, Conway, and Greenbrier all offer excellent options for retiring military families. Each has active veteran communities, VA-friendly real estate, and proximity to LRAFB’s continued commissary and exchange access for retirees.

Work With a REALTOR® Who Understands Military Retirement

Ashley Watters is a military spouse who has helped many families make the transition from active duty to civilian life in Central Arkansas. She understands the VA loan process, retirement timelines, and what retiring military families need in a home. Call or text (501) 951-9200 for a no-pressure consultation.

More Military & Veteran Resources

• Military & Veteran Realtor in Central Arkansas — Ashley’s full military specialist hub
• PCS to Little Rock AFB Housing Guide — where to live, buy, or rent near LRAFB
• VA Loan REALTOR® in Arkansas — $0 down VA loan expert for active duty & veterans
• BAH Rates Near Little Rock AFB 2026 — how far your housing allowance goes
• Jacksonville vs Cabot vs Sherwood vs Conway — compare communities near LRAFB
• Living in Jacksonville AR Near LRAFB — closest city to the base, most affordable option
• Living in Cabot AR Near LRAFB — top-rated schools, new construction, 20 min from base
• Living in Sherwood AR Near LRAFB — best balance of proximity and amenities, 10-15 min from base
• Living in Conway AR Near LRAFB — college town, Faulkner County, great schools, 35-40 min from base
• Moving to Central Arkansas from Out of State — Relocation Guide

Why Arkansas Is One of America’s Best States for Military Retirement

Arkansas doesn’t always make the top-10 lists for military retirement destinations — but it should. The combination of financial benefits, cost of living, VA healthcare access, and outdoor lifestyle make it one of the highest-value states in the country for veterans and retiring service members. Here’s what the numbers actually look like:

Zero State Income Tax on Military Retirement Pay

Arkansas fully exempts military retirement pay from state income tax. For an E-8 or O-4 retiree drawing $2,500–$4,000/month in retirement pay, that’s $3,000–$5,000+ per year in state income tax savings compared to states that tax retirement income. Over a 20-year retirement, this compounds significantly.

Property Tax Exemptions for Disabled Veterans

Veterans with a 100% service-connected disability rating receive a full property tax exemption on their primary residence in Arkansas. Partial exemptions are available for lower disability ratings. This alone can save $1,500–$4,000 per year depending on the home value and county.

VA Medical Center Access

The Central Arkansas Veterans Healthcare System (CAVHS) operates two major facilities — the John L. McClellan Memorial Veterans Hospital in Little Rock and the Eugene J. Towbin Healthcare Center in North Little Rock — plus a network of Community Based Outpatient Clinics (CBOCs) throughout the state. Central Arkansas retirees have unusually good VA healthcare access compared to rural states where the nearest VA facility is 2+ hours away.

Little Rock AFB Exchange and Commissary

Military retirees retain access to Little Rock Air Force Base’s Exchange (AAFES) and commissary — significant ongoing savings for households that shop these regularly. Commissary savings for a family of four can run $2,000–$4,000 per year compared to civilian grocery prices.

Best Central Arkansas Communities for Military Retirees

Where you settle matters as much as the state. Here’s how Central Arkansas communities stack up for retirees specifically — not active-duty families managing a commute, but people who want the best quality of life and value for the long term:

Greenbrier and Vilonia: Top-ranked schools (important if grandchildren visit frequently or if you have younger kids still at home), small-town community, home prices in the $225,000–$350,000 range, and 30–35 minutes to LRAFB for commissary and Exchange access. These are Ashley’s home communities — she can give you an insider perspective unavailable anywhere else.

Conway: Faulkner County’s largest city with three universities, strong medical facilities, growing arts and restaurant scene, and real community depth. 20–25 minutes from LRAFB. Excellent for retirees who want an active social life, continuing education options, and a city feel without Little Rock’s size.

Cabot: Top-ranked schools, 25-minute LRAFB commute, suburban feel with strong amenities. Very popular with retirees who have school-age grandchildren nearby or who simply want the best school zone for property value stability.

Lonoke County: For retirees who want acreage, privacy, and maximum dollar value — Lonoke County delivers land and space at prices that are genuinely stunning for people moving from coastal states.

Using Your VA Loan Benefit in Retirement

Your VA home loan entitlement doesn’t expire when you retire — it stays with you for life. Military retirees purchasing in Central Arkansas can use VA financing for zero down payment, no PMI, and competitive rates on their retirement home. Ashley Watters is a VA loan specialist who works exclusively with veterans and service members and can help you maximize this benefit on your retirement home purchase.

Call or text Ashley at (501) 951-9200 to discuss your retirement home search in Central Arkansas. She offers virtual consultations for retirees still at their final duty station who want to get ahead of the search before separation or retirement.