Here's a good comparison and argument for minimum wage in Arkansas to go up to 14$ per hour

 



Minimum Wage in Arkansas: 2005 vs. 2025

  • 20 Years Ago (2005):
    The minimum wage in Arkansas was $5.15 per hour in 2005. This rate had been unchanged for several years before it was raised in 20061.

  • Present Day (2025):
    As of January 1, 2025, the minimum wage in Arkansas is $11.00 per hour. This rate has been in effect since 2021123.

Cost of Living in Arkansas: 2005 vs. 2025

Cost of Living 20 Years Ago (2005)

  • Arkansas had one of the lowest costs of living in the country, second only to Mississippi, with prices about 13% lower than the national average4.

  • Median home prices in Northwest Arkansas ranged from $92,800 to $148,300 during the 2000–2007 period5.

  • Median household income was about $44,109 in 1999 (reported in 2000) and rose slightly to $45,757 in 20075.

Current Cost of Living (2025)

  • Arkansas’s overall cost of living is 4% lower than the national average6.

  • Housing costs are 22% below the U.S. average. The median home price is about $234,167, and the average rent for a two-bedroom unit is about $840–$1,394 per month, depending on the city678.

  • Utilities are 8% lower than the national average, and grocery costs are 4% lower6.

  • The cost of living for a single person is estimated at $1,851 per month (including rent); for a family of four, about $4,398 per month9.

Comparison and Key Takeaways

YearMinimum WageCost of Living IndexMedian Home Price2BR Rent per Month
2005$5.15/hr~13% below U.S. avg.4$92,800–$148,3005Not widely available
2025$11.00/hr4% below U.S. avg.6$234,1677$840–$1,39468
  • Minimum wage has more than doubled over the past 20 years.

  • Cost of living, particularly housing, has steadily increased, although it remains below the national average.

  • While the minimum wage increased significantly, there are ongoing concerns that it has not fully kept pace with actual living costs for working families10.

This comparison underscores how Arkansas still remains an affordable place to live relative to most of the U.S., but the gap between wage increases and rising costs—especially for housing—continues to be an important economic issue for many residents residents.

  1. https://fred.stlouisfed.org/data/STTMINWGAR
  2. https://www.goco.io/blog/minimum-wage-laws-updates-in-arkansas
  3. https://labor.arkansas.gov/labor/labor-standards/minimum-wage-and-overtime/
  4. https://talkbusiness.net/2015/07/arkansas-offers-low-cost-of-living-second-only-to-mississippi/
  5. https://cnt.org/sites/default/files/publications/Driving-Up-the-Cost-of-Living_final.pdf
  6. https://www.rentcafe.com/cost-of-living-calculator/us/ar/
  7. https://www.arkansasedc.com/why-arkansas/life-in-the-natural-state/detail/cost-of-living
  8. https://www.bestplaces.net/cost_of_living/state/arkansas
  9. https://livingcost.org/cost/united-states/ar
  10. https://www.aradvocates.org/the-arkansas-11-minimum-wage-is-not-enough/
  11. https://fred.stlouisfed.org/series/STTMINWGAR
  12. https://www.dol.gov/agencies/whd/state/minimum-wage/history
  13. https://tradingeconomics.com/united-states/state-minimum-wage-rate-for-arkansas-fed-data.html
  14. https://www.uaex.uada.edu/business-communities/voter-education/FSPPC316MinimumWage.pdf
  15. https://www.laborlawcenter.com/state-minimum-wage-rates
  16. https://www.unbiased.com/discover/banking/what-is-the-cost-of-living-in-arkansas
  17. https://www.epi.org/minimum-wage-tracker/
  18. https://www.dol.gov/agencies/whd/minimum-wage/state
  19. https://www.ncsl.org/labor-and-employment/state-minimum-wages
  20. https://www.huduser.gov/portal/publications/pdf/scanned/scan-chma-LittleRockArkansas-1965.pdf

To calculate how much the minimum wage would need to increase for a single person working 40 hours a week to cover all their bills, starting with rent as a major expense:

  • Average rent for a 1-bedroom apartment in Arkansas in 2025 ranges from about $750 to $1,200 per month depending on location. For example, average rents include:

    • Around $799 to $1,200 in Little Rock

    • Around $750 to $1,100 in Conway and North Little Rock

    • A rough average rent estimate across Arkansas would be about $1,000 per month12456910.

Let's calculate the monthly income required to cover this rent and typical monthly living expenses (utilities, food, transport, insurance, etc.):

  • Typical non-housing costs for a single person in Arkansas might be around $850 to $1,000 per month.

  • Total monthly costs (rent + other expenses) = $1,000 (rent) + $900 (other expenses) = approximately $1,900 per month.

Now, a full-time worker at 40 hours a week works about 173 hours per month (40 hours/week × 52 weeks ÷ 12 months ≈ 173).

To afford $1,900 in monthly expenses:

  • Required hourly wage = $1,900 ÷ 173 ≈ $11.00 per hour

Currently, Arkansas minimum wage is approximately $11.00 per hour in 2025. This means at minimum wage, a single person working full time could just about cover basic living expenses including rent, but this leaves little to no margin for savings, emergencies, or discretionary spending.

If rent or other expenses rise, or if the person has additional expenses (healthcare, debts, transportation beyond basic), the minimum wage would need to be higher.

To provide a more comfortable margin (e.g., additional $400/month for savings/emergencies), the required hourly wage would be:

  • ($1,900 + $400) ÷ 173 ≈ $13.88 per hour.

Summary:

ScenarioHourly Wage Needed
Covering basic expenses~$11.00/hr
Including modest savings/margin~$13.90/hr

So, the current minimum wage in Arkansas is roughly enough to cover basic living expenses for a single person renting a one-bedroom apartment, but an increase to about $14/hr would improve financial stability for most single renters with 40 hours work weeks.

If you want, I can also help estimate exact monthly expenses beyond rent to fine-tune these calculations.

  1. https://www.apartments.com/ar/1-bedrooms/
  2. https://www.zillow.com/little-rock-ar/apartments-1-bedrooms/
  3. https://www.realtor.com/apartments/Arkansas/beds-1-1
  4. https://www.rentcafe.com/1-bedroom-apartments-for-rent/us/ar/conway/
  5. https://www.apartments.com/north-little-rock-ar/
  6. https://www.rentcafe.com/1-bedroom-apartments-for-rent/us/ar/
  7. https://www.zillow.com/ar/apartments/
  8. https://www.trulia.com/for_rent/Little_Rock,AR/1p_beds/
  9. https://www.apartmentlist.com/ar/little-rock/c/1-bedroom-apartments-for-rent
  10. https://www.realtor.com/apartments/Little-Rock_AR/beds-1-1

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