Are you looking for a new place to call home where your dollars will stretch farther? The search can feel overwhelming, and you may not know where to start looking for the least expensive state to live in.
Ideally, you’re looking for a state where home prices, rent costs, and cost of living are significantly below the national averages. If you can find all three, it signals budget-friendly living for you and your family.
We found 10 states that check all three boxes! But before you print up your moving checklist, remember that no state is perfect. For every benefit of living somewhere affordable, there are drawbacks to consider.
Unveiling the Most Affordable States
Want insight into the 10 most affordable states to live in? You’re in luck. We ranked our list based on the cost of living percentages.
- Oklahoma
- Mississippi
- Kansas
- West Virginia
- Alabama
- Missouri
- Arkansas
- Iowa
- Nebraska
- Indiana
We provide relevant statistics for each state to show how much you could save by living there, highlight what the state offers, and mention things you should know before relocation. Knowing what to expect means a more organized and less stressful move.
#1: Oklahoma
Oklahoma takes our top spot as the most affordable state to live in. In addition to affordable living, the state offers residents wide expanses of natural beauty, cowboy culture, and a warm community spirit where people still smile and say hello to strangers. “Friendliness” is often mentioned by those living here!
| % of the National Average Cost of Living | 86.2% |
| Median Home Price | $233,900 |
| Median Monthly Rent | $934 |
| Average Salary | $56,530 |
| Unemployment Rate | 3.5% |
Homeownership is absolutely possible in the Sooner State. The median home price in Duncan is $192,500. In Lawton, it’s $160,000, and in Anadarko, you’re looking at just $92,500.
Living in Oklahoma has its challenges. Public transportation is limited, so having a vehicle is necessary if you’re outside major metro areas. Residents also face severe weather like tornadoes and winter blizzards. Summers can be scorching and humid, too.
#2: Mississippi
Mississippi is about southern charm. It has a reputation for warm hospitality and close communities that quickly welcome newcomers. Mississippi lifestyle is infused with history, where New Orleans jazz blends with country roads, and the small-town vibe is as inviting as the warm southern sun.
| % of the National Average Cost of Living | 86.3% |
| Median Home Price | $282,800 |
| Median Monthly Rent | $896 |
| Average Salary | $66,130 |
| Unemployment Rate | 2.8% |
Housing prices are incredibly affordable here. The median home price in Meridian is $160,000. Greenville and Jackson are only $130,000. DIYers can find homes for unheard-of deals in Mississippi.
Mississippi has its drawbacks. Many residents live below the poverty line, and the job market is limited. Summers are hot and humid (and the time of year when bugs are most active).
#3: Kansas
Kansas is next on our list of states with the lowest cost of living. Known for affordable housing, excellent schools, a strong job market, short commute times, and mouth-watering barbecue, the Sunflower State has everything you could ask for.
| % of the National Average Cost of Living | 87.1% |
| Median Home Price | $263,700 |
| Median Monthly Rent | $986 |
| Average Salary | $58,620 |
| Unemployment Rate | 2.8% |
The cities with budget-friendly median home prices are Coffeyville ($110,000), Fort Scott ($102,300), and Winfield ($95,000). If you search online, you’ll find listings well below those figures.
Thinking about moving to Kansas? Be prepared for extreme weather, including harsh winters and tornadoes in summer. With only a few major cities, rural living is common. Note: You’ll need a vehicle since cities are spread out.
#4: West Virginia
Nestled in the heart of Appalachia, West Virginia offers a cost of living that’s 12.3% below the national average. With this lower cost of living comes lower taxes and affordable healthcare costs. If you enjoy hiking, biking, fishing, or white-water rafting, this is the state to consider moving to.
| % of the National Average Cost of Living | 87.7% |
| Median Home Price | $284,000 |
| Median Monthly Rent | $831 |
| Average Salary | $48,570 |
| Unemployment Rate | 4.3% |
Here, affordable housing isn’t a rare find; it’s the norm. Take a look at the median price of a home in these cities: Weirton, $165,000; Bluefield, $150,500; Dunbar, $132,000; and Huntington, $119,500.
West Virginia faces challenges with limited job opportunities, below-average household income, and high unemployment. Roads in remote areas can be poor, especially in winter. Small-town life is cozy, but accessing amenities like cultural events and healthcare may require long trips.
#5: Alabama
If you’re looking for a state where neighbors quickly become friends, that would be Alabama. Steeped in history and southern charm, the state beckons with the promise of low housing costs, favorable tax benefits, and a cost of living index 11.7% below the national average.
| % of the National Average Cost of Living | 88.3% |
| Median Home Price | $267,100 |
| Median Monthly Rent | $925 |
| Average Salary | $73,220 |
| Unemployment Rate | 3.1% |
Home buyers, get ready for these median housing prices. In Birmingham, it’s $189,900; in Anniston, it’s $160,000; and in Selma, it’s just $72,000.
Like other affordable states in the south, Alabama has a high poverty rate, limited public transportation, and issues with the education system. Extreme weather, sweltering summers, and a large bug population are often mentioned as drawbacks.
#6: Missouri
From the scenic Ozark Mountains to picturesque cities along the Mississippi River, Missouri provides diverse recreational activities and stunning landscapes to explore. The best part? The thriving economy and growing job market offer ample career opportunities.
| % of the National Average Cost of Living | 88.5% |
| Median Home Price | $243,500 |
| Median Monthly Rent | $957 |
| Average Salary | $67,870 |
| Unemployment Rate | 3.4% |
We love the housing figures we found in Missouri. The median home price in Poplar Bluff is $189,500; it’s $120,000 in Kennett, and it’s $70,000 in Jennings!
As for the “cons” column, Missouri has cold winters and hot summers, natural disasters like flooding and severe storms, limited public transportation systems, and native pest species that can be harmful as you’re exploring the outdoors.
#7: Arkansas
Arkansas offers affordability, natural beauty, and a high quality of life. The natural landscapes range from mountains to scenic rivers, so you’ll always have a nice view to soak in. The rich cultural heritage of the Ozarks, vibrant arts scenes, and welcoming community spirit make Arkansas ideal for families and professionals.
| % of the National Average Cost of Living | 89% |
| Median Home Price | $246,000 |
| Median Monthly Rent | $868 |
| Average Salary | $69,310 |
| Unemployment Rate | 3.4% |
Here are our findings of hard-to-believe median home prices: West Memphis, $145,7000; Blytheville, $110,000; and Helena-West Helena, $91,900.
Being a predominantly rural state, Arkansas has limited job opportunities and lacks the amenities of more urbanized states. Natural disasters like tornadoes and flooding are also legitimate causes of concern. Before you pack up to move to Arkansas, consider the high state income and local sales taxes (and how those will impact your monthly budgets).
8. Iowa
Iowa residents enjoy spacious housing and stellar cycling trails. Known for its friendly communities, highly-rated schools, low traffic, robust economy, and strong farm-to-table philosophy, it belongs on our list of the top-rated states with a low cost of living.
| % of the National Average Cost of Living | 90.3% |
| Median Home Price | $289,900 |
| Median Monthly Rent | $9143 |
| Average Salary | $62,260 |
| Unemployment Rate | 2.8% |
You can find affordable median home prices in places like Waterloo ($174,900), Burlington ($134,500), Fort Madison ($114,900), and Keokuk ($82,500).
However, Iowa isn’t for everyone. It doesn’t offer much landscape variety, and rural life only appeals to certain personalities. Plus, you’ll have to prepare for every kind of natural disaster, along with dangerous winters and hot, humid summers.
#9: Nebraska
Landmarks like Chimney Rock, Carhenge, and The Pony Express Trail aren’t the only things Nebraska is known for. Here, you’ll find more than just affordable living — but a quality education for your children and family-friendly neighborhoods, too.
When the move is complete, reward yourself with a stop to Runza – a Nebraskan exclusive.
| % of National Average Cost of Living | 90.9% |
| Median Home Price | $280,400 |
| Median Monthly Rent | $987 |
| Average Salary | $51,350 |
| Unemployment Rate | 2.5% |
Finding Nebraska cities with median home prices under $200K was challenging, but we found a few. The median home price in Beatrice is $191,900, in Gering, $189,000, and in Alliance, $148,000.
But before you move here, know that winters in Nebraska are harsh, and if you don’t prepare for them, they can be dangerous. There’s also a high risk of tornadoes. Finally, the state’s low population means few metro areas, so entertainment amenities and job opportunities outside of agriculture and energy are limited.
#10: Indiana
Don’t overlook Indiana in your search for a new home base. As a manufacturing hub, Indiana is rife with opportunity in the material production space (automotive construction, etc.). It’s also home to Purdue University and Indiana University—two highly-rated, prestigious universities.
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| % of National Average Cost of Living | 91%1 |
| Median Home Price | $242,5002 |
| Median Monthly Rent | $9673 |
| Average Salary | $63,9304 |
| Unemployment Rate | 3.6%5 |
Even though Indiana is the most expensive on our list of most affordable states to live in, we think you’ll like the median home prices we found. In Anderson, it’s $159,900; in Marion, $147,400; and in Gary, $119,900.
But there’s always a catch. Bitter winters, tornadoes, and high humidity are some of the drawbacks of the state’s distinct four seasons. Indiana’s public transportation also leaves something to be desired. It’s also possible you could get tired of seeing corn farms everywhere.
Final Thoughts
Beyond cost of living, you also have to think about overall quality of life, job growth, and how the move aligns with your career goals. Weigh the financial gains against your personal and professional goals before packing boxes.
If you decide to move to one of these affordable states, you may discover you need to downsize. But what if you’re not ready to leave behind certain belongings? Consider Neighbor, a peer-to-peer storage marketplace offering affordable self-storage options so you can hang onto those items. You’ll find pre-vetted storage hosts in all 50 states, including each state mentioned in this article.
