#1
Arkansas
13.1% below averageArkansas is one of the cheapest states to live in the US, with housing and everyday expenses below the national average.
Cost Index
86.9
National Average
100
2026 Cost of Living Guide • United States
Cheapest States to Live in the US in 2026
Discover the cheapest states to live in the US and compare the lowest cost of living states by overall affordability, housing, and everyday expenses.
50
US States
10
Affordable States
100
US Average Index
2026
Ranking Year
What Are the Cheapest States to Live in the US?
The cheapest states to live in the US are generally found across the South, Midwest, and Great Plains. States such as Arkansas, Mississippi, Oklahoma, Iowa, Louisiana, Alabama, West Virginia, South Dakota, North Dakota, and Kansas frequently appear near the lower end of cost-of-living rankings.
A lower cost of living means that everyday expenses such as housing, groceries, utilities, transportation, and healthcare can require less money than in higher-cost states. However, the cheapest state is not automatically the best place for everyone. Income, employment opportunities, taxes, healthcare, safety, and quality of life also matter when deciding where to live.
10 Cheapest States to Live In
Affordable US states with below-average overall price levels.
#2
Mississippi
13.0% below averageMississippi offers some of the lowest living costs in America, especially for housing, making it attractive for budget-conscious households.
Cost Index
87.0
National Average
100
#3
Iowa
12.2% below averageIowa combines relatively affordable housing with moderate everyday expenses and is among the lower-cost states in the country.
Cost Index
87.8
National Average
100
#4
Oklahoma
12.2% below averageOklahoma has comparatively low housing and living expenses, making it one of the most affordable states for residents.
Cost Index
87.8
National Average
100
#5
Louisiana
11.8% below averageLouisiana remains a lower-cost state for housing and daily expenses compared with many parts of the United States.
Cost Index
88.2
National Average
100
#6
South Dakota
11.4% below averageSouth Dakota offers below-average overall prices and no individual state income tax, although taxes and housing should be evaluated together.
Cost Index
88.6
National Average
100
#7
Alabama
11.2% below averageAlabama is among the most affordable states for housing and everyday expenses, particularly compared with expensive coastal states.
Cost Index
88.8
National Average
100
#8
North Dakota
11.0% below averageNorth Dakota has a relatively low overall price level and can provide strong housing affordability compared with higher-cost states.
Cost Index
89.0
National Average
100
#9
West Virginia
10.5% below averageWest Virginia is known for affordable housing and remains one of the lower-cost states for people looking to reduce living expenses.
Cost Index
89.5
National Average
100
#10
Kansas
9.9% below averageKansas provides below-average living costs, with housing affordability helping make it one of the cheaper states in the US.
Cost Index
90.1
National Average
100
Lowest Cost of Living States Compared
Compare several of the most affordable states at a glance.
| Rank | State | Cost Index | Compared With US Average | Explore |
|---|---|---|---|---|
| 1 | Arkansas | 86.9 | 13.1% lower | View state |
| 2 | Mississippi | 87.0 | 13.0% lower | View state |
| 3 | Iowa | 87.8 | 12.2% lower | View state |
| 4 | Oklahoma | 87.8 | 12.2% lower | View state |
| 5 | Louisiana | 88.2 | 11.8% lower | View state |
| 6 | South Dakota | 88.6 | 11.4% lower | View state |
| 7 | Alabama | 88.8 | 11.2% lower | View state |
| 8 | North Dakota | 89.0 | 11.0% lower | View state |
| 9 | West Virginia | 89.5 | 10.5% lower | View state |
| 10 | Kansas | 90.1 | 9.9% lower | View state |
A cost-of-living index uses 100 as the US average. Values below 100 indicate a lower overall price level than the national average. Rankings can differ depending on the source, methodology, geographic coverage, and data year.
Why Housing Makes Some States Cheaper
Housing is one of the biggest reasons living costs vary between US states. A state can have similar grocery or transportation prices to another state but still be much cheaper overall when rent and home prices are lower.
This is why affordable states often have a large advantage in housing. Before moving, however, compare the complete monthly budget rather than looking at home prices alone. Property taxes, insurance, utilities, commuting costs, and local wages can significantly change the real affordability of a location.
What to Consider When Choosing an Affordable State
The lowest cost of living is only one part of a good relocation decision.
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Housing Costs
Compare rent, home prices, property taxes, insurance, and housing availability.
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Local Salaries
A low-cost state can be less affordable if local wages are also significantly lower.
%
Taxes
Consider income taxes, sales taxes, property taxes, and other state and local costs.
✓
Quality of Life
Healthcare, safety, education, jobs, infrastructure, and climate can matter as much as price.
Explore Affordable States
View individual state cost-of-living information.
Cheapest Places to Live in the US
If your goal is to reduce monthly expenses, the cheapest places to live in the US are often located in states with lower housing costs. Arkansas, Mississippi, Oklahoma, Iowa, Louisiana, Alabama, West Virginia, and Kansas are examples of states that frequently appear among the more affordable locations.
States With the Lowest Cost of Living
States with the lowest cost of living typically have below-average housing prices and lower overall price levels. However, affordability varies within each state. A large metropolitan area can cost considerably more than a smaller city or rural community in the same state.
How Is Cost of Living Measured?
Cost of living can be measured using a basket of goods and services that includes housing, food, utilities, transportation, healthcare, and other everyday expenses. Many indexes use 100 as the national average, with values below 100 representing lower overall price levels.
Is a Low Cost of Living Enough?
Not always. The best state for your budget depends on the relationship between your income and expenses. Someone working remotely may prioritize low housing costs, while a family may place more importance on schools, healthcare, childcare, and employment opportunities.
Cheapest States for Families
Families should look beyond the headline cost-of-living index. Housing, childcare, healthcare, transportation, utilities, and school-related expenses can have a major effect on the total household budget.
Cheapest States for Retirees
Retirees may benefit from affordable housing and everyday expenses, but healthcare availability, property taxes, insurance, and state tax rules should also be included when comparing retirement destinations.
Cheapest States for Remote Workers
Remote workers can potentially take advantage of lower housing costs without being limited by local employment markets. Internet availability, quality of life, housing, taxes, and access to airports can still influence the best choice.
Compare Cost of Living by City
State-level averages are useful for broad comparisons, but city-level costs can be very different. Use our city comparison tool to compare housing, groceries, transportation, salaries, and other living expenses between locations.
Frequently Asked Questions
Common questions about the cheapest states to live in America.
What are the cheapest states to live in the US in 2026?+
Arkansas, Mississippi, Iowa, Oklahoma, Louisiana, South Dakota, Alabama, North Dakota, West Virginia, and Kansas are among the states frequently found near the affordable end of cost-of-living rankings.
What is the cheapest state to live in?+
Arkansas and Mississippi are among the strongest candidates depending on the cost-of-living methodology used. Different sources can produce different rankings.
Which states have the lowest cost of living?+
Several Southern and Midwestern states have relatively low overall price levels, including Arkansas, Mississippi, Oklahoma, Iowa, Alabama, Louisiana, and West Virginia.
What makes a state affordable?+
Housing is usually one of the most important factors. Groceries, utilities, transportation, healthcare, taxes, and local wages also influence how affordable a state is.
Are cheap states good for retirees?+
Some affordable states can be attractive for retirees, but housing, healthcare, insurance, property taxes, income taxes, and access to services should all be compared before making a decision.
Compare the Cost of Living Before You Move
Compare cities and locations to understand housing, groceries, transportation, salaries, and everyday expenses.