Rankings

The 10 Cheapest US States to Live In: 2026 Rankings

Discover which US states offer the lowest cost of living in 2026. We rank the top 10 by housing, groceries, utilities, and overall affordability scores.

Cost of Living USA TeamNovember 10, 202410 min read

If you're looking to stretch your dollar further, choosing the right state can make a dramatic difference. Some states offer costs 15-20% below the national average across all categories.

1. Mississippi

Mississippi consistently ranks as the most affordable state in the US, with a cost of living index of 83.3. The median home price sits around $165,000, and groceries cost about 8% less than the national average.

2. Oklahoma

Oklahoma offers remarkably affordable housing with a median home price of $195,000. The state has low utility costs and reasonable grocery prices, making it ideal for families on a budget.

3. Kansas

The Sunflower State features median home prices around $210,000 and overall costs about 13% below the national average. Major cities like Wichita and Kansas City offer urban amenities at rural prices.

4. Alabama

Alabama combines Southern charm with extremely affordable living. Housing costs are nearly 30% below national averages, and the state offers no tax on groceries in most areas.

5. West Virginia

West Virginia has some of the most affordable housing in the country, with median home prices around $145,000. While job opportunities can be limited, remote workers find exceptional value here.

6. Arkansas

Arkansas offers a low cost of living with median home prices around $175,000. Cities like Fayetteville have been recognized as some of the best places to live for affordability.

7. Missouri

Missouri provides a balanced mix of affordability and opportunity. Kansas City and St. Louis offer diverse job markets with housing costs well below coastal cities.

8. Indiana

Indiana features affordable housing and low utility costs. Indianapolis has become a hub for tech and healthcare jobs, offering city living at Midwest prices.

9. Tennessee

With no state income tax, Tennessee offers significant tax savings. Nashville and Memphis provide vibrant cultural scenes at a fraction of what you'd pay in similar-sized coastal cities.

10. Iowa

Iowa rounds out the top 10 with affordable housing, low crime rates, and excellent schools. Des Moines has been repeatedly named one of the best places for young professionals.

Making the Move

When considering a move to an affordable state, factor in job availability, quality of life, and climate preferences alongside pure cost savings.

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