Cheapest States to Live in USA – Lowest Cost of Living

What are the cheapest states to live in USA? From Mississippi to Indiana, here are the most affordable states in America to call home.

cheapest states to live in the USA

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 2022

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.

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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.

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12. Kansas

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

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

Lowest Cost of Living between All States
Overhead aerial of Transamerica pyramid at night, San Francisco, California, USA

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

FAQs on the Cheapest States to Live in the USA

Some faqs about the cheapest states to live in the USA

The Cheapest States To Live in the USA

Mississippi is the cheapest state to live in the USA with a cost of the living index value of 86.1.


1. Which US state has the lowest cost of living?

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.


2. What is the nicest and cheapest state to live in?

Indiana.

Michigan.

Missouri.

Tennessee.

Georgia.

Arkansas.

Alabama.

Oklahoma.


 3. Is living in Texas cheaper?

Well, as it turns out, the cost of living in Texas is surprisingly affordable! The average cost of living in Texas is 7% lower than the national average.

Residents also happen to enjoy an exceptionally low cost of living in Texas.

In addition to not having to pay state income taxes, Texas residents can easily afford to own or rent a home, as home prices tend to be lower than the national average in many cities.


Which Is the Cheapest States to Live in the USA?

The state with the lowest cost of living is Mississippi, though states like Arkansas, Oklahoma, and Tennessee are also among the states with the cheapest cost.


4. Is Florida cheaper than Texas?

Florida has a higher cost of living index than Texas across most categories. This is consistent with the fact that Floridians need a higher living wage to survive.

Not only is Texas 8% cheaper than Florida overall, but housing, utilities, and groceries all cost significantly less in the Lone Star State.


5. Which state in the USA is best for a living?

Washington.

Minnesota.

Utah.

New Hampshire.

Idaho.


6. Where is housing cheapest?

Mississippi.

West Virginia.

Arkansas.

Oklahoma.

Kentucky.

Indiana.

Alabama.

Ohio.


The Cheapest States to Live in the USA

Tennessee’s exceptionally low home prices, health care costs, and transportation costs make it one of the cheapest places to live in America. “Cheapest States to Live in USA”


7. Is Florida cheap to live in?

The average cost of living in Florida is not even 1% higher than the national average, according to a Cost of Living Index.

But there’s still a wide range—some Florida cities rank 8% lower to 18% higher in cost when compared to the average U.S. city. Find expert agents to help you buy your home in Florida.


8. Where is the most affordable place to live in the US?

It’s Charlotte, North Carolina, the cheapest place to live in America.

Coming in at the top of the list: Charlotte, North Carolina, which ranks high thanks to affordable housing, a moderate cost of living, high-paying jobs, a vibrant community, and year-round mild weather.


9. Is Arizona cheap to live in?

Arizona was ranked the second cheapest state to live in by SeniorList.

Arizonans only spend about 70.5% of their income on bills, compared to the national average of 81%. This leaves plenty of room in their budgets for savings, investments, and fun money too.


10. What are the best states to live in financially?

New Jersey.

Hawaii.

Connecticut.

Alaska.

Illinois.


Most Expensive States to Live In

Hawaii was ranked as the most expensive state to live in in the United States.


11. Where should I not live in Florida?

Palatka.

West Palm Beach.

Pompano Beach.

Dade City.

Lake Worth.

Orlando.

Riviera Beach.

Ocala.


12. Is Texas expensive?

The cost of living in Texas is about 8% lower than the national average. Although you’ll pay more to live in urban areas, the cost of living in major cities like Austin and Houston is still 2-3% lower than the US average.


Most Affordable Places to Live

Augusta, a small city near Georgia’s border with South Carolina, is one of the cheapest and safest places to live in the USA.


13. Why is rent so high in Florida?

But in Florida, we are seeing a bigger spike in rent prices because so many people are moving here. Demand outpaces supply.”

Lawmakers have recognized the skyrocketing price and increasing prevalence of native Floridians being priced out of neighborhoods, though the proposed legislation has fallen on deaf ears.


14. Is moving to Florida a good idea?

Living in Florida won’t break the bank

Goods and services, healthcare, and housing in Florida all fall below the national average.

If you want to move to a Florida city with a low cost of living, consider Jacksonville, which falls 9 percent below the national average.


15. What are some Florida slang words?

No see ums = those annoying bugs that people have a hard time seeing!

Jit = usually a kid, but it can be anyone younger than you.

We’re parked in Goofy = Meaning you have parked a very long distance from your destination.

Sleep = to be missing out on something.

Wicked Up = Similar to “wasted”.


I believe this information on the cheapest states to live in USA was helpful, don’t hesitate to share with friends and family. Keep following our page for more updates.

CSN Team.

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