Rent vs buy in Fort Smith, AR
In Fort Smith, Arkansas, typical rent is $1,063 a month and the typical home costs $193,081.
Over 7 years, renting comes out $9k ahead.
Based on Fort Smith's typical home value and rent, this uses a 20% down payment and today's mortgage rate. The break-even point is year 10.
An opinion with clear labels and visible calculations. These figures are estimates rather than quotes. If you adjust a figure, the stamp will adjust too.
- Renting leads by
- $9k after 7 years
- Break-even point
- year 10 when owning catches up
- Full cost of ownership
- $1,706 /mo year 1, against $1,063 rent
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Is buying or renting cheaper in Fort Smith?
Over 7 years, renting saves $9,086 once you include the money returned to you when you sell. For the first 9 years, renting costs less. By year 10, owning has caught up.
Renting Owning Net cost to date, broken down by year.
How do average rent and mortgage payments compare in Fort Smith?
Rent and mortgage payments don't tell the whole story. At Fort Smith's typical price, here are all monthly charges during year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,063 | All of it, every month |
| Mortgage payment | $1,053 | $928 of it is interest in year 1 |
| Property tax | $103 | 0.64% of the value a year |
| Insurance | $120 | Census median for the city |
| Upkeep | $161 | 1% of the value a year |
| Owning, cash out | $1,437 | $125 of it builds equity |
| Lost return on the down payment | $314 | The yearly earnings the cash would make at 8.3% |
| Buying costs, spread out | $80 | 3.5% of the price over 7 years |
| True cost of owning | $1,706 | Cash out, minus the equity portion, plus the two lines listed above |
The figures behind Fort Smith's verdict
- Typical home valueZillow ZHVI, September 2026
- $193,081
- Typical rentZillow ZORI, September 2026
- $1,063 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, Arkansas, 1995 to 2025
- 3.8% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Fort Smith
- 0.64% of value
- Home insuranceCensus ACS 2020-2024, Fort Smith
- $120 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
What would flip the Fort Smith result?
Each line marks the point where the 7-year result in Fort Smith changes, while all other factors stay the same.
Renting comes out ahead when
- Home prices grow by less than 4.4% a year; the rate we apply is 3.8%, Arkansas's long-run rate.
- Rates for mortgages stay above 6.41%.
- For a home like this, rent runs under $1,160 a month; the typical figure here is $1,063.
- Your move happens before year 10.
Buying is the better choice when
- Home prices rise by more than 4.4% each year.
- You secure a mortgage rate under 6.41% (today's is 7.24%).
- You'd pay more than $1,160 a month to rent the same home.
- You remain there for 10 years or more.
Fort Smith compared with the other 812 cities
| Measure | Fort Smith | Median city |
|---|---|---|
| Typical home value | $193,081 | $422,451 |
| Typical rent | $1,063 /mo | $1,837 /mo |
| Price-to-rent ratio | 15.1 (#618 of 813) | 18.5 |
| Home prices, last 10 years | 4.3% a year | 6.2% a year |
| Rents, last 5 years | 5% a year | 4% a year |
| Property tax | 0.64% | 0.87% |
| Households that rent | 47% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Cities elsewhere in Arkansas
- Rent. Little Rock, AR. Renting saves $15k.
- Rent. Fayetteville, AR. Renting saves $54k.
- Rent. Springdale, AR. Renting saves $46k.
- Rent. Jonesboro, AR. Renting saves $8k.
- Rent. Rogers, AR. Renting saves $59k.
- Rent. Conway, AR. Renting saves $13k.
- Buy. North Little Rock, AR. Buying saves $7k.
- Rent. Bentonville, AR. Renting saves $109k.