Little Rock vs Memphis: Cost of Living Comparison
Little Rock and Memphis sit along the Mississippi River corridor just two hours apart, offering two of the most affordable metros in the South. Little Rock is Arkansas's capital and largest city, with a strong government employment base, Dillard's and Walmart regional offices, and a growing tech startup scene. Memphis is anchored by FedEx's global headquarters and a major logistics industry, plus a world-famous music and barbecue heritage. Tennessee's lack of state income tax gives Memphis a tax advantage, while Little Rock offers slightly lower housing costs and a smaller-city feel.
Side-by-Side Comparison
| Category | Little Rock | Memphis | Winner |
|---|---|---|---|
| Overall Index | 92 | 91 | Memphis |
| Housing | 74 | 72 | Memphis |
| Groceries | 94 | 95 | Little Rock |
| Transportation | 96 | 97 | Little Rock |
| Utilities | 98 | 93 | Memphis |
Index values are estimates for general comparison purposes relative to a national average of 100. Lower is cheaper. Actual costs vary by neighborhood, household size, and lifestyle.
Visual Cost Comparison
Overall Index
Housing
Groceries
Transportation
Utilities
Green bars indicate the more affordable city in each category. National average = 100.
Salary Equivalent: Little Rock vs Memphis
To maintain the same standard of living, here's what salaries earned in Little Rock are worth in Memphis - and vice versa.
| Salary in Little Rock | Equivalent in Memphis | Difference |
|---|---|---|
| $50,000 | $49,457 | $-543 |
| $75,000 | $74,185 | $-815 |
| $100,000 | $98,913 | $-1,087 |
| $150,000 | $148,370 | $-1,630 |
Memphis is cheaper, so you need less income to maintain your standard of living. A negative difference means you keep more purchasing power.
Category-by-Category Breakdown
Housing (Memphis wins): Housing is 3% more expensive in Little Rock than Memphis. Little Rock has a housing index of 74 vs 72. This is typically the largest expense category and drives most of the overall cost difference.
Groceries (Little Rock wins): Grocery costs in Little Rock (index 94) are lower than Memphis (index 95). Both cities are at or below the national average for groceries.
Transportation (Little Rock wins): Transportation costs index 96 in Little Rock vs 97 in Memphis. This includes gas prices, car insurance, public transit fares, and vehicle maintenance. The difference is modest and unlikely to significantly impact your budget.
Utilities (Memphis wins): Utilities cost more in Little Rock (index 98) than Memphis (index 93). This covers electricity, natural gas, water, sewage, internet, and phone service. Climate plays a significant role - cities with extreme temperatures tend to have higher utility costs.
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FAQ - Little Rock vs Memphis Cost of Living
Is Little Rock or Memphis more expensive to live in?
Little Rock is more expensive overall, with a cost of living index of 92 compared to 91 (national average = 100). The biggest difference is in housing, where Little Rock costs 2 index points more.
How much more expensive is housing in Little Rock vs Memphis?
Housing in Little Rock has an index of 74 compared to 72 in Memphis. That's 3% more expensive. Housing is typically the largest factor in cost of living differences between cities.
What is a $100,000 salary in Little Rock worth in Memphis?
A $100,000 salary in Little Rock is equivalent to approximately $98,913 in Memphis. This means you would need to earn less in Memphis to maintain the same standard of living.
Are groceries cheaper in Little Rock or Memphis?
Groceries are cheaper in Little Rock, with an index of 94 compared to 95 in Memphis. The national average is 100, so both cities are below the national average.
Should I move from Little Rock to Memphis to save money?
Moving from Little Rock to Memphis could save you money, as Memphis's overall cost of living index is 1 points lower. However, consider your specific situation - salary differences between markets, state income taxes, and lifestyle preferences all factor in. Use our free calculator to estimate total relocation costs.