With the rising cost of living in many parts of the world, more people are looking toward the United States not just as a travel destination, but as a potential place to live affordably.
Whether you're considering a big move or just curious about where your dollar can stretch the farthest, this guide dives into the most budget-friendly states and cities across the U.S.
We’ll skip the complicated cost-of-living indexes and focus on real-life factors like housing, daily expenses, and quality of life—so you can make an informed (and wallet-friendly) choice.
Top 10 States with the Lowest Cost of Living
Mississippi
If you want to live somewhere in the United States that costs the least, then head to Mississippi. The state has the most affordable housing in the country, so it’s a great place for anyone looking to save money on rent.
Health care and groceries are also inexpensive, making it an appealing destination for families or those in retirement. Moreover, it’s a state where you can truly kick back and enjoy the simple life.
Arkansas
Arkansas is also one of the states where you’ll get a lot for your dollar — it has low property taxes and a low cost of living. The state is one of natural beauty – there are beautiful hot springs and miles of forest to roam in.
Whether you feel like living in a big city or a sleepy country region, housing is cheap here. It could be the ideal place for a nature lover on a budget.
Oklahoma
Oklahoma has some of the lowest housing and transportation prices so you won’t go bankrupt living here. The culture isn’t half bad either, especially in Oklahoma City.
The energy and agriculture industries are thriving here leading to good jobs and healthy population growth in this state. It’s a state where you can have both affordability and chance.
Alabama
Alabama is known for its low median home prices and cheap cost of living. Spanning mountains and beaches, Alabama offers a variety of landscapes. The state is full of southern charm and history, making it feel like home.
If you love history, or are simply looking for a welcoming place to call home, Alabama has all you need for a low price tag.
Kansas
Kansas is famous for its low-cost housing and utilities, which keeps the cost of living nice and low. The state also has a strong tradition of higher education and family values.
And with a robust agriculture and manufacturing industry, there’s plenty of work opportunities too. Kansas may just be your key to cheap living and a healthy career!
Missouri
In Missouri, you have the affordability of the Midwest with the benefit of having world-class cities like St. Louis and Kansas City nearby.
There are lots of outdoor activities throughout the state, and healthcare is cheap here, making the destination attractive. It’s a state you can enjoy both the city and the outdoors without breaking the bank.
Iowa
Iowa is home to low living costs and a good standard of living. Not only does it have strong schools and low crime but it’s also the perfect place for families.
A real community atmosphere is prevalent in the state and there are numerous civic organizations to join as well. If you want an affordable and friendly state to call home, look no further than Iowa.
West Virginia
Tucked away in the hills, West Virginia is a state with low cost of living and utilities. It boasts unparalleled natural beauty, with rolling rivers and stunning mountains as far as the eye can see.
Job sectors to watch include tourism and energy. It’s an affordable state Drawbacks: Its one of the Poorest States in United States.
Tennessee
In Tennessee, there is no state income tax. That’s more dollars in your wallet. In cities such as Knoxville and Chattanooga, you can live on the cheap, surrounded by music and gorgeous landscapes.
It’s a state you can enjoy life without going broke. If you love music and the great outdoors, Tennessee is a frugal state to call home.
Indiana
But with its low cost of living and affordable housing, Indiana is not such a bad place at all. It’s situated in the manufacturing belt and offers plenty of job openings.
It’s family oriented, there are good schools…if you need a cheaper state with options, Indiana could be it.
Top 10 Cities with the Lowest Cost of Living
McAllen, Texas
Welcome to McAllen, Texas, a place where you get a little extra for your dollar. Housing is around 13% cheaper than the US average, and the savings don’t stop there.
You’ll also get to enjoy low property taxes and affordable healthcare, which can be a big advantage. On top of that, there’s plenty of culture here and it’s just a stone’s throw from the Mexico border.
Wichita, Kansas
Wichita is a surprisingly affordable city, with incredibly low unemployment rates. The city has a strong aerospace industry so it offers a lot of job opportunities.
It’s very family-friendly too, with plenty of parks and museums. Wichita kind a has a small town charm mixed with affordability.
Little Rock, Arkansas
The capital city has one of the most affordable cost of livings you will find with plenty of city benefits.
The job market is growing, especially in the healthcare and education fields, and the Arkansas River is in your backyard if you enjoy outdoor activities. Little Rock is affordable and cute, so living here is easy.
Toledo, Ohio
Toledo could be the place for you.
Real estate and living costs are nice and low, there’s a great downtown with a lot of arts and entertainment redeveloped, and there’s Lake Erie for recreational activities. Cheap city living with outdoor leisure on the side is life in Toledo.
Scranton, Pennsylvania
Scranton oozes history and cultural tradition, but it’s also easy on your budget. Housing is cheap and the standard of living is affordable.
Education and healthcare are growing, too, which adds to the city’s benefits. The city is rich in history and modern in amenities.
Dayton, Ohio
Dayton, Ohio, is a very affordable city and has a real sense of community. I love the innovation here and the history of flight — it’s just an inspiring place to be.
It has an up-and-coming tech and manufacturing industry, too, which makes it an excellent place to move for work.
Tulsa, Oklahoma
Tulsa has a lively arts scene, and it’s very affordable to live here. The economy relies on the energy and aerospace sectors.
Plus, its riverfront and park systems provide plenty of outdoor activities for the weekend. The city is just lively, cheap, and fun to live in.
Akron, Ohio
Akron is a mid-sized city that’s famous for having one of the lowest costs of living in the country.
It also boasts a robust healthcare and education system and is close to lots of national parks and outdoor activities. His example is Akron, OH: affordable city on the rise.
Birmingham, Alabama
Birmingham is an affordable place to live while still being able to enjoy a city. It’s full of history and culture too, making it a great destination to explore.
There’s a whole lot of jobs in the finance and biotech fields now as well, so you can find work there. This affordable and bustling city is packed with a lot of history and a lot of opportunities.
El Paso, Texas
Affordable homes and shockingly low crime in El Paso. What more could you want from a place? With a richly diverse population, tons of history, and all the nature nearby, El Paso is a great place to live.
Plus, the strong military presence means there are plenty of jobs and a stable economy. Affordable and with a lot going on, it’s a great place to live.
Pros and Cons of Living in Low-Cost Areas
Pros
Probably the most significant benefits of living in low-cost places is the higher disposable income. Since housing and everyday costs are cheaper, you’ll have more money to spend on other aspects of life.
Picture yourself being able to purchase a house without being house poor. Additionally, due to the lower cost of living, there’s less financial stress, which means you can concentrate on what’s really important, such as your loved ones and your passions.
Cons
However, there are downsides to living in these regions. Firstly, job prospects may be limited, particularly if you work in a niche industry.
While smaller towns are more tranquil, amenities such as specialized medical care and schools for your children could be scarce.
What’s more, you may find there are not as many cultural and leisure activities as in a larger city, resulting in a quieter pace of life.
FAQ
1. What about the cost of necessities like groceries and utilities?
And in most of these destinations, the cost of necessities remains below the national average. That means your day-to-day life is much easier, and it frees you up to spend money on fun and for unexpected things.
2. Are these locations suitable for families?
Some are! Iowa and Kansas have great schools and family communities. It’s affordable and easy to live in a safe area with a great family lifestyle.
3. Can I find job opportunities in these states and cities?
But it’s also important to remember that while job prospects in some rural areas are limited, there are other areas with robust job markets– for example, in energy and agriculture in Oklahoma; aerospace and manufacturing in Wichita and Dayton.
Conclusion
Living in the United States doesn’t have to come with a high price tag. From charming small towns to vibrant mid-sized cities, there are plenty of affordable places where you can enjoy a comfortable lifestyle without breaking the bank.
Whether you're relocating for work, retirement, or a fresh start, these budget-friendly states and cities prove that you don’t have to sacrifice quality of life to save money.