12 States With the Lowest Cost of Living

1. West Virginia

Let’s grab some buffalo plaid and head west. Oklahoma’s average cost of living is 13% lower than normal. If you move to the small town of Ponca City in northern Oklahoma, you’ll enjoy an even cheaper cost of living—19.5% below average.

So, what kind of money can you expect to earn in Oklahoma? And how much does housing cost? Let’s take a look:

	Oklahoma	U.S.
Median Home Value	$208,6009	$340,200
Median Monthly Rent	$1,40010	$2,000
Median Household Income	$62,13811	$77,719
Unemployment Rate	3.3%12	4.2%

 

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Oklahoma is great for its impressive landscapes (like the Wichita Mountains), strong sense of community, and thriving music and food scene—which blends Southern, Western and Midwestern influences. Plus, people in Oklahoma love celebrating their state’s Native American roots and cowboy culture.

Kansas is right in the middle of the ole U.S. of A., and its cost of living is 12.5% below the national average. Now, let’s compare housing prices, salaries and unemployment rates in Kansas to the rest of the country:

	Kansas	U.S.
Median Home Value	$243,20013	$340,200
Median Monthly Rent	$1,21514	$2,000
Median Household Income	$70,33315	$77,719
Unemployment Rate	3.6%16	4.2%

 

Kansas is sometimes called the breadbasket of the U.S. because it grows so much wheat. Unfortunately, gluten and I don’t get along—but if you have a passion for farming (or sourdough starters), consider Kansas.

Mississippi’s cost of living, at 12.3% below the national average, lands it at number four on the list. Tupelo (the birthplace of Elvis) is the cheapest city in the state at 17.1% below the national average.

Here’s how Mississippi’s housing prices, income and job market compare to the rest of the U.S.:

	Mississippi	U.S.
Median Home Value	$169,80017	$340,200
Median Monthly Rent	$1,45018	$2,000
Median Household Income	$54,20319	$77,719
Unemployment Rate	3.3%20	4.2%

 

While housing is cheap in Mississippi, the state also has the lowest median household income of all the states on the list—over $20,000 less than the national average.

Once you arrive in Mississippi, get ready for some fantastic music and food. This state’s known for rock ’n’ roll, blues, and delicacies like fried catfish and chocolate pies.

Next up, Arkansas. The cost of living in Arkansas is 11.3% below average. Walmart is based in Bentonville, Arkansas, and is the state’s biggest employer. (Put that one in your back pocket for your next Arkansas-themed trivia night.)

Now, let’s check out housing prices, income and the job market in Arkansas compared to the rest of the U.S.:

	Arkansas	U.S.
Median Home Value	$195,70021	$340,200
Median Monthly Rent	$1,37522	$2,000
Median Household Income	$58,70023	$77,719
Unemployment Rate	3.4%24	4.2%

 

Arkansas has amazing natural hot springs, caves and forests. You can live on the plains or in the mountains, and you can find real diamonds in Arkansas at Crater of Diamonds State Park.

Alabama has the sixth-lowest cost of living—11.2% lower than the rest of the U.S. The cheapest city in Alabama is Florence, which has a cost of living that’s 16.4% below the national average.

Even the most expensive city, Mobile, is 6.8% below average. Mobile is also home to my alma mater, the University of Mobile. (Which I’m fully aware you have definitely never heard of until now. Go Rams!)

See how Alabama’s housing prices, income and job market stack up to the rest of the U.S.:

	Alabama	U.S.
Median Home Value	$216,60025	$340,200
Median Monthly Rent	$1,44526	$2,000
Median Household Income	$62,21227	$77,719
Unemployment Rate	3.3%28	4.2%

 

Alabama is known for having a mix of forests and beaches. It’s also one of America’s biggest steelmakers, since the soil contains iron ore and coal—the main ingredients for steel. There’s your fun fact for the day.

The cost of living in Missouri is 11.2% lower than the national average. Kansas City (the place Taylor Swift goes to watch football) is the state’s most expensive place to live, but it’s still 7.8% less than most U.S. cities. The cheapest city, Joplin, has a cost of living around 14.5% below average.

Here’s what housing prices, salaries and the job market look like in Missouri:

	Missouri	U.S.
Median Home Value	$233,60029	$340,200
Median Monthly Rent	$1,30030	$2,000
Median Household Income	$68,54531	$77,719
Unemployment Rate	3.7%32	4.2%

 

Missouri has plenty of small towns where you can put down roots. You can choose from grassy plains, farmland and the Ozark Mountains. The state’s two biggest cities, St. Louis and Kansas City, are great for sports fans because they have professional sports teams—like the Cardinals, the Blues, the Royals and the Chiefs.

At 9.8% below the average cost of living, Iowa is another one of the most affordable states. And the capital, Des Moines, is among the cheapest capital cities in the U.S. at 13.9% below average. Wherever you go in the state, you’ll likely find affordable housing (and lots of corn). Let’s take a look:

	Iowa	U.S.
Median Home Value	$213,30033	$340,200
Median Monthly Rent	$1,10034	$2,000
Median Household Income	$71,43335	$77,719
Unemployment Rate	3.2%36	4.2%

 

More good news: Iowa has the second-highest household income out of all the cheapest states. Plus, Iowa has lots of state parks, museums, aquariums and random historical sites, like the place where Grant Wood painted “American Gothic” (you know, the old couple holding the pitchfork).

Tennessee’s cost of living is 9.5% below average. Nashville is the most expensive city in Tennessee (shocker), but living there still costs 1.2% less than the average U.S. city. Want to find someplace cheaper? Head over to Knoxville, where the cost of living is 13.3% lower than average.

Let’s compare Tennessee’s average housing prices, income and job market to the rest of the country:

	Tennessee	U.S.
Median Home Value	$307,30037	$340,200
Median Monthly Rent	$1,75038	$2,000
Median Household Income	$67,63139	$77,719
Unemployment Rate	3.6%40	4.2%

 

Housing prices are pretty high here. So before you move to Tennessee, find out exactly how much house you can afford to make sure you don’t go overboard.

Once you arrive, you can enjoy the Great Smoky Mountains, country music and legendary Memphis barbecue. (And I’d be remiss if I didn’t tell you it’s also home to Ramsey Solutions Headquarters. Come see us!)

Nebraska’s cost of living is 9% below the national average, and the state has the lowest unemployment rate on the list. Let’s see how the numbers add up:

	Nebraska	U.S.
Median Home Value	$245,20041	$340,200
Median Monthly Rent	$1,30742	$2,000
Median Household Income	$74,59043	$77,719
Unemployment Rate	2.8%44	4.2%

 

By the way, there’s more to Nebraska than just cornfields (though there are a lot of those). Think the College World Series, Chimney Rock (hello, Oregon Trail fans), and plenty of wide-open spaces to breathe.

If you’re looking for that laid-back Midwest life, Nebraska might just be calling your name.

Indiana’s cost of living is 8.8% less than the U.S. average. And little ole Richmond, Indiana, has a cost of living 17.6% below average. But what about housing? And what’s up with the job market? Take a look:

	Indiana	U.S.
Median Home Value	$225,90045	$340,200
Median Monthly Rent	$1,35046	$2,000
Median Household Income	$69,47747	$77,719
Unemployment Rate	4.5%48	4.2%

 

Beyond the numbers, Indiana has some great selling points. It’s surprisingly beautiful, and it has everything from sand dunes up north to forests and limestone caves in the south. This state also produces lots of popcorn—so bring your movie collection along.

Georgia’s cost of living is 8.6% below the national average. The smaller cities on Georgia’s cost of living index (like Dalton and Dublin) are much further below the average U.S. city, and even Atlanta clocks in at 3.5% lower than average.

So, how much does housing cost in Georgia, and how much do most people make? See for yourself:

	Georgia	U.S.
Median Home Value	$323,00049	$340,200
Median Monthly Rent	$1,94550	$2,000
Median Household Income	$74,63251	$77,719
Unemployment Rate	3.7%52	4.2%

 

Homes in the Peach State aren’t super cheap. But on the bright side, household income is close to the national median. And Georgia has a lot to offer—like colleges, the Appalachian Mountains, sandy beaches along the Atlantic, beautiful architecture and Southern charm. (And, of course, peaches.)

Should You Move to a State With a Lower Cost of Living?

The truth is, moving only based on the cost of living may not be the best idea. Moving to a new state really depends on your financial situation, career goals and lifestyle, especially since every state has its pros and cons. Distance also matters—a cross-country move costs way more than a cross-state move.

That said, it’s important to live somewhere you can actually afford—so find out if the cheapest states to live in will fit you and your family. To get started, try our free Cost of Living Calculator and compare your current hometown to cities in the most affordable states.

Making the Move

Maybe you’ve already made up your mind—you’re sick of sky-high prices and ready to head to greener pastures. Time to pack your bags.

The first step is to get a great real estate agent on your side, and that’s where our RamseyTrusted agents come into play. They’re top-performing agents who live and work near you—or where you want to move. Wherever you’re looking to move, they’ll take care of you.

Find a RamseyTrusted real estate agent today!