Cheapest States to Live in USA: What are the cheapest states to live in? From Mississippi to Indiana, here are the most affordable states in America to call home.
Cheapest States to Live in USA – Lowest Cost of Living
Have you considered moving to a state where your dollar will stretch further?
Deciding where to live has generally been based on our social circles or employment opportunities.
Cheapest State to Live In USA
Well, that’s not necessarily a bad idea. The cost of living in the most expensive state vs the cheapest state differs quite a lot, and you could be getting much more for your money somewhere else.
Three main factors determine the cost of living:
Housing Costs
The price of accommodation varies dramatically from location to location. A square foot of real estate is considerably cheaper in Idaho compared to, say, California or New York.
In the former, space is abundant, while in the latter, space is scarce, pushing costs up.
For the Cost of Living Index, researchers calculate how much it costs, on average, to purchase a home or rent a property in the state.
Household Income
Household income refers to the combined income (both active and passive) of all the people living in a particular dwelling.
The money could be coming from work, pensions, investment funds, property rentals, etc. Generally speaking, the higher the average statewide household income, the more it costs to live in that state.
Therefore, cheap states have lower average incomes. “Cheapest States to Live in USA”
Cost of Living
Lastly, researchers consider the price of essentials in the state, asking how much it would cost for someone to achieve the basic standard of living.
Necessities such as food, clothing, healthcare, utilities, and transportation are included in the calculation.
Using this combined information, the Council for Community and Economic Research (C2ER) constructed an index with a breaking point of 100. Any state with an index below that number has a low cost of living.
For example, if you’re looking to start a family, you should check out the average costs of wedding ceremonies in the states you consider moving to.
1. Mississippi
‣ Cost of Living Index: 83.3
‣ Groceries: 92.2
‣ Housing: 66.3
‣ Utilities: 90.4
‣ Transportation: 86.7
‣ Health: 94.7
‣ Miscellaneous: 90.0
Mississippi has the lowest cost of living in the United States. With a cost of living index of 83.3, expenses are nearly 17% less than the national average.
Mississippi’s housing costs are the lowest in the nation. The price of a median, single-family home is $140,818. Rent for a two-bedroom apartment costs an average of $777 a month. Transportation costs are the lowest in the nation.
The living wage for a family of four in Mississippi is $80,523. However, the median income for a family of four is $70,656.
2. Kansas
‣ Cost of Living Index: 86.5
‣ Groceries: 91.7
‣ Housing: 72.6
‣ Utilities: 100.2
‣ Transportation: 97.3
‣ Health: 100.4
‣ Miscellaneous: 88.4
Kansas offers the second-cheapest cost of living in the nation. Housing costs are 28% lower than the national average, the third-lowest in the country. “Cheapest States to Live in USA”
The typical single-family home in Kansas costs $176,898. A typical two-bedroom apartment rents for $862 a month. Groceries and transportation costs are also lower than the national average.
The living wage in Kansas is $89,353 a year for a family of four. The median income for a family of four is $92,980. Kansas has a poverty rate slightly lower than the national average and one of the lowest unemployment rates in the country. at 2.5%.
3. Alabama
‣ Cost of Living Index: 87.9
‣ Groceries: 98.2
‣ Housing: 70.1
‣ Utilities: 100.7
‣ Transportation: 92.7
‣ Health: 91.2
‣ Miscellaneous: 94.3
Alabama has the third-lowest cost of living in the country, with an index of 87.9. Alabama has the second-lowest housing prices, behind Mississippi. “Cheapest States to Live in USA”
The typical single-family home in Alabama sells for $170,184, while a two-bedroom apartment costs $807 a month. While utilities and groceries are close to the national average, Alabama’s health and transportation costs are among the lowest in the nation.
The living wage for a family of four in Alabama is $80,777, just below the median income of $80,845. Poverty rates in Alabama are high, with 15.6% of residents living at or below the poverty line.
4. Oklahoma
‣ Cost of Living Index: 87.9
‣ Groceries: 94.5
‣ Housing: 74.7
‣ Utilities: 95.1
‣ Transportation: 94.8
‣ Health: 94.5
‣ Miscellaneous: 92.6
Oklahoma has a cost of living index of 87.9 and offers the fourth cheapest cost of living in the United States. Housing prices in Oklahoma are the fifth lowest in the country, 25% cheaper than the national average.
The typical single-family home costs $150,754, while the average two-bedroom apartment rents for $814 a month. Costs for groceries and healthcare are also some of the cheapest in the nation.
While the cost of living is low, so are salaries. The median income for a family of four in Oklahoma is $78,458 a year.
4. Georgia
‣ Cost of Living Index: 88.8
‣ Groceries: 95.9
‣ Housing: 74.4
‣ Utilities: 90.5
‣ Transportation: 92.6
‣ Health: 96.7
‣ Miscellaneous: 97.1
Georgia has the fifth-lowest cost of living in the United States. Georgia’s housing expenses are the fourth lowest in the country, with prices 25% lower than the national average.
Housing affordability is among the highest in the nation, with over 40% of residents able to afford a new home. Transportation costs in Georgia are also among the lowest in the country.
The minimum wage in Georgia is only $5.15 an hour, the lowest in the nation. However, salaries are generally sufficient to cover the costs of living in the state.
The median income for a family of four in Georgia is $91,161 a year, while the same family would need only $85,101 a year to cover necessary expenses. Georgia has an unemployment rate of 3.2%, lower than the national average.
5. Tennessee
‣ Cost of Living Index: 89
‣ Groceries: 94.7
‣ Housing: 79.3
‣ Utilities: 92.5
‣ Transportation: 88.8
‣ Health: 91.2
‣ Miscellaneous: 94.2
Tennessee offers the country’s sixth-lowest cost of living. Overall, prices in Tennessee are 11% lower than the national average. Housing costs are 21% lower than the national average.
A typical single-family home costs $231,682, while average two-bedroom apartment rents for $904 a month. Transportation and healthcare costs in Tennessee are some of the lowest in the country.
Utilities are also especially low, with the typical household spending $256.83 a month. “Cheapest States to Live in USA”.
The median income for a family of four in Tennessee is $85,923 a year, much higher than the living wage of $78,000. The unemployment rate in the state is 3.4%.
6. Missouri
‣ Cost of Living Index: 89.8
‣ Groceries: 95
‣ Housing: 80.3
‣ Utilities: 95.4
‣ Transportation: 92.4
‣ Health: 94.6
‣ Miscellaneous: 93.3
Missouri has the seventh-lowest cost of living in the United States. Housing in Missouri costs 20% less than the national average. A typical single-family home in the state costs $194,226.
A two-bedroom apartment rents for an average of $834. Utilities cost an average of $363.80 a month.
Missouri’s cost of living index is below the national average on all metrics, with especially low costs associated with health and transportation.
Missouri has one of the higher minimum wages in the country at $11.15 an hour. The median income for a family of four is $89,418 a year, while the living wage is $86,410 a year.
7. Iowa
‣ Cost of Living Index: 89.8
‣ Groceries: 98.4
‣ Housing: 76
‣ Utilities: 94.9
‣ Transportation: 92.4
‣ Health: 94.6
‣ Miscellaneous: 93.3
Iowa has the United State’s eighth-lowest cost of living, with costs in all categories below the national average. Housing in Iowa is the sixth cheapest in the nation, with an index of 76.
The median price of a single-family home is $165,955. Rents for a two-bedroom apartment average $808 a month. Utilities run an average household $336.24 a month.
The living wage for a family of four in Iowa is $95,199. Meanwhile, the median income is $95,199. Iowa has a level of poverty lower than the national average. The unemployment rate is also lower in Iowa than in the nation as a whole.
8. West Virginia
‣ Cost of Living Index: 90.5
‣ Groceries: 96.5
‣ Housing: 78.6
‣ Utilities: 89.4
‣ Transportation: 92.2
‣ Health: 88.1
‣ Miscellaneous: 99.7
West Virginia has the country’s ninth-lowest cost of living in the United States. Housing costs are among the lowest in the nation, while [housing affordability is high] the typical single-family home costs $117,768.
A two-bedroom apartment rents for an average of $727 a month. Transportation and healthcare costs are some of the lowest in the nation. “Cheapest States to Live in USA”
However, West Virginia is ranked one of the worst states to live in due to low economic opportunities, poor educational outcomes, and infrastructure in need of repair.
The living wage for a family of four in Virginia is $86,704. However, the median income is only $73,600 a year.
9. Indiana
‣ Cost of Living Index: 90.6
‣ Groceries: 92.7
‣ Housing: 78.3
‣ Utilities: 99
‣ Transportation: 98.3
‣ Health: 94.6
‣ Miscellaneous: 96.8
The cost of living in Indiana is the tenth-lowest in the United States. Average prices in all categories are below the national average, and overall costs are 10% cheaper than the national average.
Indiana’s housing costs are the eighth cheapest in the nation. The median single-family home costs $185,805.
A two-bedroom apartment rents for $840 a month. Utilities are just below the national average, while healthcare and transportation costs are among the lowest in the nation.
The living wage for a family of four in Indiana is $81,321. The median income is $90,654.
10. New Mexico
‣ Cost of Living Index: 87.5
‣ Living wage per hour: $19.62
‣ Median household income: $48,059
‣ Average rent per month: $847
‣ Average child care: $12,946
New Mexico is the fifth-largest state in the U.S. and still one of the cheaper states to live in.
New Mexico is known for its diverse landscape and white sands, and the fact that you can see five different states from the top of the Capulin Volcano.
New Mexico is a wine country and has more PhDs per capita than any other U.S. state. It has incredible outdoor adventure spaces and is a popular state for those who love the outdoors and being surrounded by beautiful nature.
11. Georgia
‣ Cost of Living score: 65 out of 75 points
‣ Consumer Price Index (June, Atlanta-Sandy Springs-Roswell): Up 6.7%
‣ Average home price (Metro Atlanta): $380,418
‣ Half gallon of milk: $1.99
‣ Monthly energy bill: $120.82
Yes, you can get more peaches for your money in Georgia, where a 15-ounce can cost roughly 30% less than it would in New York.
And for your main course, a New York steak is also cheaper in Atlanta than it is in New York — by almost a dollar, based on 2020 averages.
12. Kansas
‣ Cost of Living score: 74 out of 75 points (Top States Grade: A+)
‣ Consumer Price Index (June, Midwest Region): Up 5.8%
‣ Average home price (Dodge City): $299,018
‣ Half gallon of milk: $2.48
‣ Monthly energy bill: $159.30
If Dorothy Gale were alive today — and her little dog, too — taking Toto to the veterinarian in Dodge City would cost half what it would cost in New York City.
If she went to a restaurant in New York and ordered a steak, she would find the price 20% higher than at home, and she would know right away that she was not in Kansas anymore.
13. West Virginia
‣ Transportation cost index: 92.2
‣ Grocery cost index: 96.5
‣ Housing cost index: 78.6
West Virginia is one of the states that managed to retain some of the lowest housing prices. The median home price is currently $126,948 and one of the lowest on our list.
Transportation is 8 points below the national average, and low taxes further contribute to low living costs.
Most Affordable States to Live In
And while housing costs are a key indicator of affordability, they aren’t a holistic metric.
The Council’s report assigns each metropolitan area in the country a cost of living index based on the cost of common consumer goods and services in that area.
An index score of 100 reflects a national average across all participating areas, while figures less than 100 indicate higher affordability and the opposite for those more than 100.
‣ Mississippi
‣ Kansas
‣ Oklahoma
‣ Alabama
‣ Arkansas
‣ Georgia
‣ Tennessee
‣ Missouri
‣ Michigan
‣ Indiana
Most Affordable States in the U.S.
1. Indiana
‣ The average cost of living index: is 90.57
‣ Median household income: $57,603
‣ Average home price: $286,833
‣ Ground beef: $4.26
‣ Milk: $1.57
‣ Eggs: $1.13
2. Michigan
‣ The average cost of living index: is 90.40
‣ Median household income: $59,584
‣ Average home price: $283,548
‣ Ground beef: $4.43
‣ Milk: $1.57
‣ Eggs: $1.12
3. Missouri
‣ The average cost of living index: is 89.75
‣ Median household income: $57,409
‣ Average home price: $284,492
‣ Ground beef: $3.97
‣ Milk: $2.16
‣ Eggs: $1.22
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4. Tennessee
‣ The average cost of living index: is 89.49
‣ Median household income: $56,071
‣ Average home price: $307,432
‣ Ground beef: $4.24
‣ Milk: $1.95
‣ Eggs: $1.22
5. Georgia
‣ The average cost of living index: is 89.30
‣ Median household income: $61,980
‣ Average home price: $264,085
‣ Ground beef: $4.52
‣ Milk: $2.02
‣ Eggs: $1.40
6. Arkansas
‣ The average cost of living index: is 89.16
‣ Median household income: $48,952
‣ Average home price: $314,486
‣ Ground beef: $3.93
‣ Milk: $1.75
‣ Eggs: $1.21
7. Alabama
‣ The average cost of living index: is 88.80
‣ Median household income: $51,734
‣ Average home price: $269,453
‣ Ground beef: $4.30
‣ Milk: $2.07
‣ Eggs: $1.35
8. Oklahoma
‣ The average cost of living index: is 88.09
‣ Median household income: $54,449
‣ Average home price: $285,750
‣ Ground beef: $3.99
‣ Milk: $2.02
‣ Eggs: $1.18
9. Kansas
‣ The average cost of living index: is 86.67
‣ Median household income: $62,087
‣ Average home price: $272,626
‣ Ground beef: $4.11
‣ Milk: $1.82
‣ Eggs: $1.22
10. Mississippi
‣ The average cost of living index: is 84.10
‣ Median household income: $45,792
‣ Average home price: $252,725
‣ Ground beef: $3.77
‣ Milk: $1.89
‣ Eggs: $1.14
Lowest Cost of Living between All States
Based on the cost of living per state, here is a full list of the lowest and least expensive states to live in for 2022.
| Rank | State | Cost of Living Index | Housing | Grocery | Utilities |
| 1 | Mississippi | 86.1 | 66.6 | 93.2 | 92.3 |
| 2 | Arkansas | 86.9 | 75.6 | 92.5 | 91 |
| 3 | Oklahoma | 87 | 73 | 94.6 | 93.4 |
| 4 | Missouri | 87.1 | 78.3 | 95.4 | 96.3 |
| 5 | New Mexico | 87.5 | 84.4 | 94.6 | 89.9 |
| 6 | Tennessee | 88.7 | 79.4 | 93 | 91.7 |
| 7 | Michigan | 88.9 | 80.2 | 91 | 98.5 |
| 8 | Kansas | 89 | 70 | 92.6 | 100.1 |
| 9 | Georgia | 89.2 | 74.3 | 96.3 | 90.3 |
| 10 | Wyoming | 89.3 | 81.7 | 103.5 | 87.4 |
| 11 | Alabama | 89.3 | 69.2 | 98 | 100.7 |
| 12 | Indiana | 90 | 76.4 | 92.4 | 96.7 |
| 13 | Iowa | 90.1 | 76.5 | 98.3 | 94.1 |
| 14 | Ohio | 90.8 | 76.1 | 97.9 | 90.7 |
| 15 | Nebraska | 90.8 | 86.6 | 98.6 | 88.9 |
| 16 | Kentucky | 90.09 | 80.1 | 93.3 | 104.2 |
| 17 | West Virginia | 91.1 | 77.1 | 97.9 | 88.2 |
| 18 | Texas | 91.5 | 83.5 | 91.2 | 103.3 |
| 19 | Idaho | 92.3 | 105.5 | 92.4 | 82.8 |
| 20 | Louisiana | 93.9 | 86.3 | 95.6 | 86.7 |
| 21 | Illinois | 94.5 | 85.2 | 97.4 | 95.8 |
| 22 | North Carolina | 94.9 | 91.8 | 97.4 | 97.2 |
| 23 | South Carolina | 95.9 | 80.1 | 101.8 | 105 |
| 24 | Arizona | 97 | 106.2 | 101.8 | 105.2 |
| 25 | Wisconsin | 97.3 | 88.6 | 100.9 | 98.1 |
| 26 | Florida | 97.9 | 99.6 | 106.9 | 103.1 |
| 27 | Utah | 98.4 | 97.6 | 97.9 | 93.2 |
| 28 | North Dakota | 98.8 | 93.7 | 102.1 | 93.3 |
| 29 | South Dakota | 99.8 | 112.7 | 101.8 | 91.2 |
| 30 | Virginia | 100.7 | 112.1 | 96.1 | 96.5 |
| 31 | Minnesota | 101.6 | 90.4 | 105 | 96.2 |
| 32 | Pennsylvania | 101.7 | 100.6 | 109.3 | 109.5 |
| 33 | Colorado | 105.6 | 116.7 | 99.9 | 87.9 |
| 34 | Montana | 106.9 | 105.9 | 103.1 | 88.1 |
| 35 | Delaware | 108.1 | 93.3 | 109.5 | 104.3 |
| 36 | Nevada | 108.5 | 118.5 | 110.8 | 87 |
| 37 | New Hampshire | 109.7 | 110.3 | 99.7 | 115.2 |
| 38 | Washington | 110.7 | 116.7 | 109.2 | 91.1 |
| 39 | Vermont | 114.5 | 136.7 | 109.5 | 120.6 |
| 40 | Maine | 117.5 | 142 | 100.4 | 107.2 |
| 41 | Rhode Island | 119.4 | 124.2 | 108.7 | 125.8 |
| 42 | New Jersey | 125.1 | 137 | 108.7 | 104.6 |
| 43 | Connecticut | 127.7 | 137.7 | 101.8 | 132.3 |
| 44 | Maryland | 129.7 | 171.3 | 108.7 | 104 |
| 45 | Alaska | 129.9 | 126.6 | 132.7 | 157 |
| 46 | Massachusetts | 131.6 | 179.2 | 117 | 110.8 |
| 47 | Oregon | 134.2 | 178.1 | 109 | 90.1 |
| 48 | New York | 139.1 | 230.2 | 118.3 | 99.2 |
| 49 | California | 151.7 | 192.7 | 110.3 | 128.5 |
| 50 | Hawaii | 192.9 | 313.1 | 157.9 | 169.2 |
Living Wage by State 2022
Below is a list of states according to the living wage needed by a household to support themselves, based on a family of four with 2 adults working full-time. “Cheapest States to Live in USA”
| Rank | State | Living Wage |
| 1 | Kentucky | $43,000 |
| 2 | West Virginia | $45,000 |
| 3 | South Dakota | $45,000 |
| 4 | Arkansas | $45,000 |
| 5 | Ohio | $46,000 |
| 6 | Missouri | $46,000 |
| 7 | Mississippi | $46,000 |
| 8 | Idaho | $46,000 |
| 9 | Alabama | $46,000 |
| 10 | Tennessee | $47,000 |
| 11 | South Carolina | $47,000 |
| 12 | Oklahoma | $47,000 |
| 13 | North Dakota | $47,000 |
| 14 | Montana | $47,000 |
| 15 | Indiana | $47,000 |
| 16 | Wyoming | $48,000 |
| 17 | Utah | $48,000 |
| 18 | Texas | $48,000 |
| 19 | New Mexico | $48,000 |
| 20 | Nebraska | $48,000 |
| 21 | Louisiana | $48,000 |
| 22 | Kansas | $48,000 |
| 23 | Georgia | $48,000 |
| 24 | Michigan | $49,000 |
| 25 | Iowa | $49,000 |
| 26 | Pennsylvania | $50,000 |
| 27 | North Carolina | $50,000 |
| 28 | Wisconsin | $51,000 |
| 29 | Washington | $51,000 |
| 30 | Maine | $51,000 |
| 31 | Arizona | $51,000 |
| 32 | Vermont | $52,000 |
| 33 | Oregon | $52,000 |
| 34 | Minnesota | $52,000 |
| 35 | Illinois | $52,000 |
| 36 | Florida | $52,000 |
| 37 | Rhode Island | $53,000 |
| 38 | Nevada | $53,000 |
| 39 | Delaware | $53,000 |
| 40 | Virginia | $54,000 |
| 41 | Colorado | $54,000 |
| 42 | Alaska | $54,000 |
| 43 | New Hampshire | $55,000 |
| 44 | New Jersey | $56,000 |
| 45 | California | $57,000 |
| 46 | Maryland | $58,000 |
| 47 | New York | $59,000 |
| 48 | Massachusetts | $60,000 |
| 49 | Connecticut | $60,000 |
| 50 | Hawaii | $61,000 |
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