Are you in search of affordable states to call home in the U.S.?

The cost of living can differ significantly based on a range of factors, including food, housing, healthcare, taxes, and more. In this post, we highlight the most appealing states in the U.S. that offer economical housing options in desirable locations.

Mississippi

• Population: 2,976,149
• Home Price: $105,700 median purchase price; $723 median monthly rent
• Median Household Income: $45,081
• Unemployment Rate: 6.4%
• Cost of Living: 16% lower than the U.S. average

The Magnolia State is celebrated for its flowering state tree and is home to bustling cities like Biloxi and Jackson. It stands out as one of the most budget-friendly places to reside, owing to its reasonable housing and living expenses. Beyond being affordable, it also boasts a growing job market, particularly in the agriculture sector.

West Virginia

• Population: 1,792,147
• Home Price: $107,400 median purchase price; $658 median monthly rent
• Median Household Income: $46,711
• Unemployment Rate: 6.2%
• Cost of Living: 16% lower than the U.S. average

This state, known as the Mountain State, lies in the heart of the Appalachian region, offering a plethora of outdoor adventures amidst its picturesque valleys, rolling hills, and mountains. With housing costs being 38% below the national average, it’s an excellent state for those seeking affordable housing and individuals entering the home-buying market.

Alabama

• Population: 4,903,185
• Home Price: $128,500 median purchase price; $728 median monthly rent
• Median Household Income: $50,536
• Unemployment Rate: 4.4%
• Cost of Living: 11% lower than the U.S. average

Boasting a cost index of 103.3, Alabama does carry relatively high utility and tax costs but compensates with affordable housing prices. With a median rent of $728 and a home value averaging just $128,500, it ranks among the lower-cost living states. Although its median household income stands at $50,536, it remains competitive compared to others on the list.

Arkansas

• Population: 3,013,756
• Home Price: $122,800 median purchase price; $708 median monthly rent
• Median Household Income: $49,970
• Unemployment Rate: 4.4%
• Cost of Living: 12% lower than the U.S. average

Known for its abundant lakes, rivers, and hot springs, Arkansas proudly carries the title “The Land of Opportunity.” Residents will be pleased to find this state offers some of the lowest costs for utilities, food, transportation, and various living expenses nationwide. However, it’s worth noting that the average income here is among the lower figures on this list.

Oklahoma

• Population: 3,956,971
• Home Price: $121,300 median purchase price; $742 median monthly rent
• Median Household Income: $52,919
• Unemployment Rate: 5.9%
• Cost of Living: 14% lower than the U.S. average

Oklahoma is rich in Native American history and is well-known for its exceedingly low living costs, with utilities running 4% below the national average. Housing costs in this state are approximately 31% lower than the average in other states. Key industries include management, engineering, and healthcare.

Indiana

• Population: 6,785,528
• Home Price: $156,000 median purchase price; $742 median monthly rent
• Median Household Income: $57,603
• Unemployment Rate: 3.4%
• Cost of Living: 10% lower than the U.S. average

Indiana showcases diverse landscapes, with a flat northern region giving way to hills and canyons in the south. With reported monthly mortgage payments averaging just over $670, Indiana proves to be an attractive choice for those seeking affordable living. It is home to major cities such as Indianapolis, Bloomington, and Fort Wayne.

Ohio

• Population: 11,799,448
• Home Price: $157,200 median price; $692 median monthly rent
• Population: 11,799,448
• Home Price: $135,700 median purchase price; $925 median monthly rent
• Median Household Income: $58,640
• Unemployment Rate: 4.5%
• Cost of Living: 10% lower than the U.S. average

Ohio, known as the Buckeye State, is famous for landmarks like the Rock and Roll Hall of Fame and the birthplace of the Wright Brothers. However, there’s much more to appreciate about this state. Ohio boasts historically robust sectors, including automotive manufacturing, steel production, and insurance. Some of the most desirable locations to reside in include Akron, Cincinnati, and Dublin.

Iowa



• Population: 3,155,070
• Home Price: $132,800 median price; $715 median monthly rent
• Median Household Income: $60,523
• Unemployment Rate: 3.6%
• Cost of Living: 10% lower than the U.S. average

The Hawkeye State is known for being a leading producer of eggs, pork, corn, and dairy. Additionally, it serves as the home to some highly esteemed universities, including Drake University, Iowa State University, and the University of Iowa. Beyond its extensive rural areas, Iowa features charming unique towns and picturesque streams.

Michigan



• Population: 9,986,857
• Home Price: $127,800 median purchase price; $799 median monthly rent
• Median Household Income: $57,144
• Unemployment Rate: 6.9%
• Cost of Living: 11% lower than the U.S. average

In Michigan, the average household allocates just 11.37% of its income towards housing costs. This state, with close to 10 million residents, enjoys a cost of living that is significantly below the national standard. Notably, its largest city, Detroit, remains around 40% more affordable when compared to cities like Seattle, Brooklyn, and Washington, D.C. For those seeking outdoor activities, Michigan offers a plethora of recreational spots such as Silver Lake Sand Dunes, Belle Isle Park, Tahquamenon Falls State Park, and the Great Lakes.

Nebraska



• Population: 1,934,408
• Home Price: $137,300 median purchase price; $745 median monthly rent
• Median Household Income: $61,439
• Unemployment Rate: 3.1%
• Cost of Living: 11% lower than the U.S. average

Nebraska, often referred to as “the Cornhusker State,” is not only known for its corn production but also stands out as one of the most affordable places to call home in the nation. Here, residents typically spend only 11.9% of their earnings on mortgage payments. The state also features remarkable attractions such as the Henry Doorly Zoo & Aquarium, Scotts Bluff National Monument, and the College World Series, among others.