Cost of Living in Hot Springs, AR

How far does a $70,000 salary go in Hot Springs? Estimated income taxes on that gross salary total approximately $10,095 per year — combining federal taxes with Arkansas's state income tax. Subtract rent for a 2-bedroom apartment ($1,090/month based on HUD Fair Market Rents for the Hot Springs metro area) and the estimated annual take-home is $46,825, or roughly $3,902 per month for everything else: food, transportation, savings, and discretionary spending.

The Hot Springs metro has a cost of living index of 56.9 according to the Bureau of Economic Analysis Regional Price Parities (national average = 100). At 43% below the national average, Hot Springs is a genuinely affordable metro where everyday expenses stretch further than in most cities.

At a $70,000 salary, the estimated 2-bedroom rent in Hot Springs represents approximately 19% of gross income. That is well within the 30% rule of thumb that financial advisors typically recommend, leaving significant room for savings and discretionary spending.