Cost of Living in Melbourne, AR

With a cost of living index of 66, Melbourne, AR is one of the most affordable cities in the country. Living here is 34% cheaper than the national average and 4% below the Arkansas state average of 70. Melbourne is a small community of 2,227 residents.

Housing costs are the biggest factor in Melbourne's cost of living. The median monthly rent is $620 (53% below the US median of $1,319), and the median home value sits at $203,000 (33% below the national median of $304,900). At current prices, the median home costs roughly 5.9x the median household income — a stretch for many buyers, though not uncommon in today's market.

The median household income in Melbourne is $34,303, which is 54% lower than the national median of $75,149. Residents spend roughly 22% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.