Cheapest Places to Live in the US | Capital One (2024)

How far does your dollar go? It depends on where you live. If you move to a place with a lower cost of living, your budget can stretch further than it would in cities with high costs of living.

If you’re concerned about living expenses and considering a relocation, check out this list of 11 affordable places to live in America.

Key takeaways

• The cheapest places to live have a low cost of living in a number of areas, including housing, groceries and transportation.
• Mississippi has the overall lowest cost of living of any state.
• Kalamazoo, Michigan, has the lowest cost of living for any city in the U.S.

This article uses data from the Missouri Economic Research and Information Center (MERIC) and the U.S. Census Bureau that breaks down the cost of living in each state. An assessment of the costs of certain goods and services creates a price index averaged across all of America. And every state’s score is measured out of a national average of 100. The goods and services analyzed include:

• Housing
• Groceries
• Transportation
• Utilities
• Health care
• Other miscellaneous costs

Keeping the scores in mind, here’s a list of the most affordable states to live in.

West Virginia comes in as the 11th cheapest place to live. While its housing and utility costs are low, the transportation costs within the state are higher than average. The Beckley area has the lowest median rent prices at $491 per month, according to research by the Census Bureau, which also reports a median income in the state of $48,037.

Cost of living indexes:

• Housing: 71.2
• Groceries: 98.5
• Transportation: 110.0
• Utilities: 93.9
• Health care: 102.0
• Miscellaneous: 98.1
• Overall cost of living index: 90.5

Michigan ranks as number 10 with its cost of living, although it ties with Arkansas for the overall cost of living index score. It has relatively low housing costs but is much closer to the national average on utilities and health care costs. The Bay City area has a median rent of $572, and the state as a whole has a median income of $59,234.

Cost of living indexes:

• Housing: 77.8
• Groceries: 90.4
• Transportation: 95.7
• Utilities: 98.2
• Health care: 97.0
• Miscellaneous: 96.6
• Overall cost of living index: 89.9

Arkansas has the same overall average cost of living as Michigan, but for different reasons. It’s cheaper to pay for health care and utilities than in Michigan but faces higher grocery and miscellaneous costs. The state has a median income of $49,475, and the Pine Bluff metropolitan area has the lowest median rent at $521.

Cost of living indexes:

• Housing: 76.7
• Groceries: 92.9
• Transportation: 94.5
• Utilities: 96.5
• Health care: 80.1
• Miscellaneous: 99.7
• Overall cost of living index: 89.9

Tennessee is up next, having low average costs of housing and transportation. It edges closer to the national average costs for groceries and utilities. The state reports a median income of $54,833. Morristown has the lowest median rent, coming in at about $529.

Cost of living indexes:

• Housing: 80.7
• Groceries: 94.5
• Transportation: 87.9
• Utilities: 94.1
• Health care: 91.7
• Miscellaneous: 93.8
• Overall cost of living index: 89.4

Indiana comes in with a slightly lower average cost of living, thanks in part to its low housing costs. However, it does sit above the national average for utility costs. The Terre Haute area has the lowest median rent of $540. The state median income is $58,235.

Cost of living indexes:

• Housing: 75.9
• Groceries: 93.4
• Transportation: 97.1
• Utilities: 100.8
• Health care: 95.4
• Miscellaneous: 93.8
• Overall cost of living index: 89.2

Georgia comes in at number six, also fueled heavily by its low housing costs. Health care and miscellaneous costs are among the most expensive parts of living within the state. The Albany region contains the lowest metropolitan rent, with the median monthly rent sitting near $531. Its median income is $61,224, which is the second highest median income on this list.

Cost of living indexes:

• Housing: 74.2
• Groceries: 94.1
• Transportation: 91.4
• Utilities: 91.2
• Health care: 94.3
• Miscellaneous: 96.7
• Overall cost of living index: 88.2

Iowa edges out Georgia with both a lower cost of living and a higher median income. The state has low housing and transportation costs but nears the national average for groceries and health care. The median income is the highest on this list, coming in at $61,836. The metropolitan area with the lowest median rent is Cedar Rapids at $627 per month.

Cost of living indexes:

• Housing: 69.5
• Groceries: 99.4
• Transportation: 93.4
• Utilities: 94.8
• Health care: 99.1
• Miscellaneous: 95.6
• Overall cost of living index: 88.1

Alabama is up next. While the cost of living is low for housing and transportation, the state’s average utilities cost is above the national average. The Florence-Muscle Shoals area has the cheapest metropolitan rent at $472 per month. The median income comes in at $52,035.

Cost of living indexes:

• Housing: 68.9
• Groceries: 97.0
• Transportation: 90.0
• Utilities: 101.1
• Health care: 90.5
• Miscellaneous: 95.5
• Overall cost of living index: 87.5

While it has cheaper costs for housing and groceries than number two on this list, Kansas has some areas where expenses are substantially higher than you might expect. Utilities cost nearly as much as the national average, and health care costs are above the national average.

The median rent in Topeka is $621 per month, making it the cheapest metropolitan rent in the state. Kansas boasts a median income of $61,091, the third highest on this list.

Cost of living indexes:

• Housing: 68.2
• Groceries: 91.7
• Transportation: 94.2
• Utilities: 98.7
• Health care: 102.8
• Miscellaneous: 90.4
• Overall cost of living index: 85.4

Oklahoma has low average costs for housing and transportation, with slightly higher costs for groceries and utilities. Its metropolitan area with the lowest median rent is Enid at $601 per month. The median income for residents of the state is $53,840.

Cost of living indexes:

• Housing: 68.8
• Groceries: 94.0
• Transportation: 90.3
• Utilities: 95.2
• Health care: 92.9
• Miscellaneous: 89.7
• Overall cost of living index: 84.8

Mississippi tops this list as the cheapest place to live in the United States. It has the lowest housing costs of any state listed above and remains well below the national average in every other category. At a median price of $614 per month, Hattiesburg is the metropolitan area with the lowest median rent in Mississippi. But the state also has the lowest median income of any state on this list at $46,511.

Cost of living indexes:

• Housing: 63.8
• Groceries: 92.3
• Transportation: 89.1
• Utilities: 90.0
• Health care: 97.4
• Miscellaneous: 92.0
• Overall cost of living index: 83.1

There are a number of cities—some outside of these 11 states—that also offer inexpensive costs of living. According to The Council for Community and Economic Research, the following cities have the lowest cost of living in America:

• Salina, Kansas—Overall cost of living: 82.4
• Statesboro-Bulloch County, Georgia—Overall cost of living: 82.0
• Richmond, Indiana—Overall cost of living: 81.9
• Topeka, Kansas—Overall cost of living: 81.7
• Decatur, Illinois—Overall cost of living: 81.0
• Tupelo, Mississippi—Overall cost of living: 80.8
• Jackson, Mississippi—Overall cost of living: 80.5
• Muskogee, Oklahoma—Overall cost of living: 77.3
• Harlingen, Texas—Overall cost of living: 76.5
• Kalamazoo, Michigan—Overall cost of living: 74.1

If you’re looking for the cheapest places to live in the U.S., Mississippi has the lowest cost of living for any state and Kalamazoo, Michigan, has the lowest cost of living for a city. However, there are many other factors to consider about an area before moving—like job opportunities, public education and the local lifestyle.

Looking for more information on affordable living? Check out this guide on budgeting for the most common cost of living expenses.