Cheapest Places to Live in America 2025
Finding the cheapest places to live in the United States in 2025 has become a priority for millions of Americans seeking financial relief from rising housing costs, inflation, and economic uncertainty. The dramatic variation in living expenses across American states presents significant opportunities for families, retirees, remote workers, and young professionals to dramatically reduce their monthly budgets while maintaining quality of life. States in the Midwest, South, and Southwest consistently offer the lowest costs of living, with some regions requiring less than half the income needed in expensive coastal metropolitan areas to maintain comparable lifestyles.
The 2025 housing market reveals that strategic relocation can save households tens of thousands of dollars annually. According to the Missouri Economic Research and Information Center (MERIC) and the Council for Community & Economic Research (C2ER), states like Oklahoma, Mississippi, Alabama, and Kansas lead the nation in affordability with cost of living indices below 90, compared to the national baseline of 100. These states offer median home prices ranging from $140,000 to $180,000, average rents between $700 and $1,100 monthly, and comprehensive savings across groceries, transportation, healthcare, and utilities. This article examines verified government statistics and authoritative housing data to provide a complete picture of where Americans can find the most affordable living conditions in 2025, analyzing housing costs, rental markets, property taxes, income requirements, and quality of life factors that determine true affordability.
Interesting Facts and Latest Statistics on Cheapest Places to Live in the US 2025
| Key Affordability Fact | 2025 Data |
|---|---|
| Cheapest State Overall (Cost of Living Index) | Oklahoma (85.5) |
| Lowest Median Home Price | West Virginia ($146,578) |
| Lowest Average Rent (2-bedroom apartment) | Mississippi ($777/month) |
| State with Lowest Property Tax Rate | Hawaii (0.27-0.28%) |
| Most Affordable State for Homeownership | West Virginia (79.6% homeownership rate) |
| Price-to-Income Ratio Leader (Most Affordable) | West Virginia (2.9) |
| National Median Home Price | $410,800 (Q2 2025) |
| National Average Rent | $1,576/month (April 2025) |
| Cheapest City for Renters (1-bedroom) | Wichita, KS ($695/month) |
| Most Affordable Metro for Rent-to-Income Ratio | Bismarck, ND (~15% of income) |
| States with Cost of Living Index Below 90 | 10 states (Oklahoma, Mississippi, Alabama, Missouri, West Virginia, Iowa, Kansas, Michigan, Tennessee, Arkansas) |
| National Price-to-Income Ratio | 4.6 (homes cost 4.6x median income) |
Data Source: Missouri Economic Research and Information Center (MERIC) Q3 2025, Council for Community & Economic Research (C2ER) Q1 2025, U.S. Census Bureau (2025), Construction Coverage Price-to-Income Analysis (2025), Apartments.com National Rent Report (April 2025)
The cheapest places to live in the United States in 2025 present remarkable opportunities for financial savings, with specific states and cities offering cost structures dramatically below national averages. Oklahoma claims the position as the most affordable state overall with a cost of living index of 85.5, meaning residents need approximately 14.5% less income than the national average to maintain equivalent lifestyles. This affordability stems primarily from housing costs that run 24% below the national average, combined with transportation expenses 10% lower and healthcare costs 8% below national norms.
Housing affordability varies substantially across states, with West Virginia offering the lowest median home price at $146,578 and the highest homeownership rate at 79.6%, indicating that homeownership remains genuinely accessible for middle-income families. The price-to-income ratio, which measures how many years of household income are required to purchase a median-priced home, reveals stark differences in true affordability. West Virginia leads at 2.9, followed by Iowa at 3.0 and Kansas at 3.2, compared to the national ratio of 4.6. These states allow families to achieve homeownership with two to three years of median household income, while expensive states like California (8.2) and Hawaii (8.8) require eight or more years of income for the same goal. Rental markets in affordable states show similar patterns, with Mississippi offering the lowest average two-bedroom rent at $777 monthly, and Wichita, Kansas providing the cheapest one-bedroom apartments at $695 per month. The 10 states with cost of living indices below 90 cluster in the Midwest (Iowa, Kansas, Missouri, Michigan), South (Mississippi, Alabama, Arkansas, Tennessee, West Virginia), and Southwest (Oklahoma), creating a geographic affordability belt where households can substantially reduce living expenses.
Top 10 Cheapest States to Live in the US 2025
| Rank | State | Cost of Living Index | Median Home Price | Average 2-Bedroom Rent | Key Affordability Factor |
|---|---|---|---|---|---|
| 1 | Oklahoma | 85.5 | $171,057-$244,000 | $814-$1,077 | Lowest overall costs |
| 2 | Mississippi | 83.3 | $140,818 | $777-$991 | Lowest housing index (66.0) |
| 3 | Alabama | 87.0-87.9 | $170,184-$232,205 | $1,046 | Second-lowest housing costs |
| 4 | Missouri | 89.0 | $220,000-$250,000 | $900-$1,050 | Balanced affordability |
| 5 | West Virginia | 87.5-89.0 | $117,768-$146,578 | $727 | Lowest median home price |
| 6 | Iowa | 90.7 | $183,418-$228,000 | $850-$950 | Best safety-affordability ratio |
| 7 | Kansas | 86.5 | $176,898 | $950-$1,100 | Third-lowest housing costs |
| 8 | Michigan | 89.0-91.0 | $260,000-$280,000 | $950-$1,150 | Metro Detroit affordability |
| 9 | Tennessee | 88.5-90.0 | $270,000-$290,000 | $1,000-$1,200 | No state income tax |
| 10 | Arkansas | 89.0-91.0 | $220,174 | $850-$1,000 | Low property taxes |
Data Source: MERIC Q3 2025 Cost of Living Index, World Population Review State Rankings (December 2025), Redfin State Housing Data (February 2025), Apartments.com State Rent Averages (April 2025)
The 10 cheapest states to live in the US in 2025 offer substantial savings opportunities, though each presents unique characteristics regarding housing markets, employment prospects, and quality of life considerations. Oklahoma secures the number one position with its comprehensive affordability across all categories. The state’s cost of living index of 85.5 represents genuine savings, with median home prices ranging from $171,057 to $244,000 depending on the data source and location within the state. At 1,746 square feet, Oklahoma homes cost less than $100 per square foot, allowing families to afford larger properties. However, the state faces challenges including higher poverty rates and lower quality of life satisfaction scores, factors that potential residents must weigh against financial benefits.
Mississippi follows closely with the lowest cost of living index of 83.3, representing expenses nearly 17% below the national average. The state dominates housing affordability with a housing index of 66.0—the lowest in the nation—and median home prices of just $140,818. Two-bedroom apartments average $777 monthly, providing exceptional value for renters. Transportation costs in Mississippi are also the lowest in the country. Despite these financial advantages, Mississippi struggles with the nation’s highest poverty rate at nearly 20% and consistently ranks among the worst states for economic opportunity. The living wage for a family of four in Mississippi is $80,523, yet the median income reaches only $70,656, creating a $9,867 annual gap that contributes to persistent poverty.
Alabama, Missouri, and West Virginia round out the top five, each offering distinct advantages. Alabama provides the second-lowest housing costs with median homes at $170,184-$232,205 and maintains affordable healthcare and transportation. Missouri achieved a cost of living index of 89.0 in Q3 2025 and offers particularly strong value in cities like Joplin (index of 84.0). West Virginia presents the absolute lowest median home price at $117,768-$146,578, though infrastructure challenges and limited economic opportunities temper its appeal. Iowa stands out among affordable states for combining low costs with high safety rankings (top 5 nationally for violent crime) and well-funded public infrastructure, making it an optimal choice for families prioritizing both affordability and security. These 10 states collectively demonstrate that substantial cost savings remain achievable in 2025, particularly for remote workers, retirees, and families willing to prioritize financial stability over proximity to major coastal metropolitan centers.
Housing and Home Prices in the Cheapest States in the US 2025
| State | Median Home Price | Price-to-Income Ratio | Median Income for Family of Four | Homeownership Rate | Average Home Size |
|---|---|---|---|---|---|
| West Virginia | $146,578 | 2.9 | $73,600 | 79.6% | 1,400-1,600 sq ft |
| Mississippi | $140,818 | 3.3 | $70,656 | 65.5% | 1,500-1,700 sq ft |
| Oklahoma | $171,057 | 3.5 | $78,458 | 67.3% | 1,746 sq ft |
| Kansas | $176,898 | 3.2 | $92,980 | 66.5% | 1,650 sq ft |
| Alabama | $170,184-$232,205 | 3.6 | $80,845 | 68.2% | 1,550-1,750 sq ft |
| Arkansas | $220,174 | 3.8 | $75,000-$80,000 | 66.8% | 1,600 sq ft |
| Iowa | $183,418-$228,000 | 3.0 | $92,000-$95,000 | 70.2% | 1,550 sq ft |
| Ohio | $241,000-$242,897 | 3.5 | $85,000-$90,000 | 66.1% | 1,650 sq ft |
| Indiana | $260,000 | 3.7 | $83,000-$88,000 | 69.4% | 1,600 sq ft |
| Michigan | $260,000-$280,000 | 3.9 | $85,000-$90,000 | 71.3% | 1,650 sq ft |
Data Source: World Population Review Median Home Price by State (December 2025), Construction Coverage Price-to-Income Analysis (2025), U.S. Census Bureau American Community Survey (2025)
Housing costs in the cheapest states in the US in 2025 present extraordinary value for homebuyers, with median prices ranging from $140,000 to $260,000—substantially below the national median of $410,800. The price-to-income ratio provides the most accurate measure of true housing affordability, revealing which states enable homeownership for average-income families. West Virginia leads at 2.9, meaning a typical household can purchase a median-priced home with approximately three years of income. This compares dramatically to the national ratio of 4.6 and expensive states where ratios exceed 6.0 to 8.0, effectively pricing out middle-class buyers.
West Virginia offers the absolute lowest median home price at $146,578, combined with the highest homeownership rate at 79.6%, demonstrating that affordable housing translates directly into higher ownership rates. However, the state’s median family income of $73,600 ranks among the nation’s lowest, and residents face significant economic challenges including limited job opportunities and aging infrastructure. Mississippi provides similar value at $140,818 median price, though its lower homeownership rate of 65.5% reflects the income-cost mismatch where families need $80,523 annually to live comfortably but earn only $70,656 median income.
Iowa and Kansas exemplify the ideal balance of affordability and economic stability. Iowa’s price-to-income ratio of 3.0 pairs with median family incomes of $92,000-$95,000, creating genuine affordability where homeownership remains accessible without financial strain. The state’s median home price of $183,418-$228,000 for properties averaging 1,550 square feet provides excellent value. Kansas offers similar advantages with a 3.2 ratio, $176,898 median home prices, and family incomes of $92,980—one of the few affordable states where median income exceeds living wage requirements. Oklahoma provides larger homes averaging 1,746 square feet for $171,057, though at less than $100 per square foot, buyers sacrifice some modern amenities and geographic convenience for space and affordability. These housing markets demonstrate that homeownership remains achievable in 2025 for families willing to relocate to less densely populated regions, particularly for remote workers whose incomes aren’t tied to local wage scales.
Rental Market and Apartment Costs in the Cheapest US Cities in 2025
| City | State | 1-Bedroom Rent | 2-Bedroom Rent | Rent as % of Median Income | Population |
|---|---|---|---|---|---|
| Wichita | Kansas | $695 | $850-$950 | 16-18% | 397,000 |
| Cedar Rapids | Iowa | $750 | $900 | 15-17% | 137,000 |
| El Paso | Texas | $750 | $950 | 16-18% | 678,000 |
| Sioux Falls | South Dakota | $830 | $950-$1,000 | 16-17% | 195,000 |
| Bismarck | North Dakota | $850 | $950-$1,050 | 15% | 74,000 |
| Fort Wayne | Indiana | $850 | $1,000-$1,100 | 17-19% | 270,000 |
| Toledo | Ohio | $700-$800 | $900-$1,000 | 18-20% | 270,000 |
| Akron | Ohio | $750-$800 | $950 | 18-20% | 190,000 |
| Lincoln | Nebraska | $850 | $1,000-$1,100 | 16-18% | 291,000 |
| Tulsa | Oklahoma | $750-$850 | $950-$1,050 | 17-19% | 413,000 |
Data Source: ApartmentAdvisor Cities with Cheapest Rent (February 2025), WalletHub Cities with Most Affordable Rent (April 2025), Apartments.com State Rent Data (April 2025), RentData.org Cheapest Cities (2025)
The cheapest cities for renters in the US in 2025 offer extraordinary value, with one-bedroom apartments available for $695 to $850 monthly—dramatically below the national median of $1,520 and roughly half the cost of major metropolitan areas. Wichita, Kansas claims the title of most affordable city for one-bedroom rentals at $695 per month. Known as the “Air Capital of the World” due to its aviation manufacturing industry, Wichita provides over 125 miles of biking trails, 140 parks, and a vibrant craft beer scene. The city’s economy, anchored by aviation, healthcare, and IT sectors, creates stable employment while maintaining remarkably low housing costs.
Cedar Rapids, Iowa and El Paso, Texas follow closely at $750 monthly for one-bedroom units. Cedar Rapids benefits from a strong economy driven by manufacturing, agriculture, and emerging tech industries, with over 100 parks and trails including the scenic Cedar Valley Nature Trail. El Paso, the sixth-largest city in Texas with a population of 678,000, offers unique advantages including rich Mexican-Texan cultural fusion, authentic cuisine, and access to Franklin Mountains State Park—the largest urban park in the country. The city’s low cost of living sits well below the national average despite providing big-city amenities and year-round outdoor recreation.
Bismarck, North Dakota presents the best rent-to-income ratio, with residents spending approximately 15% of median income on housing—dramatically below the 30% threshold recommended by financial advisors. The city offers the 20th-lowest median annual rent nationally while maintaining the 73rd-highest median income, creating exceptional affordability. Sioux Falls, South Dakota follows with renters spending roughly 16% of income on housing, offering a growing city atmosphere with small-town values, stunning Falls Park where the Big Sioux River cascades over dramatic cliffs, and strong employment opportunities in healthcare, finance, and technology. These 10 cities demonstrate that renters can still find substantial value in 2025, particularly in Midwestern and Southern metropolitan areas where economic fundamentals remain solid while housing costs stay manageable. For young professionals, families, and anyone seeking to reduce housing expenses, these cities provide livable environments with local employment opportunities, though remote workers with higher incomes can maximize savings by bringing coastal salaries to affordable heartland markets.
Property Taxes in the Most Affordable States in the US 2025
| State | Effective Property Tax Rate | Annual Tax on $200,000 Home | Annual Tax on Median-Priced Home | Ranking (Lowest to Highest) |
|---|---|---|---|---|
| Hawaii | 0.27-0.28% | $540-$560 | $1,723 (on $615,300 median) | 1st (Lowest) |
| Alabama | 0.39-0.41% | $780-$820 | $604 (on $147,200 median) | 2nd |
| Colorado | 0.49-0.51% | $980-$1,020 | $1,751 (on $343,300 median) | 3rd |
| Nevada | 0.50% | $1,000 | $1,500-$1,800 | 4th |
| Louisiana | 0.55% | $1,100 | $900-$1,000 (low median value) | 5th-6th |
| District of Columbia | 0.56% | $1,120 | $3,168 (on $601,500 median) | 7th |
| Delaware | 0.57% | $1,140 | $1,500-$1,700 | 8th |
| West Virginia | 0.58% | $1,160 | $850-$950 (on $146,578 median) | 9th-10th |
| South Carolina | 0.58% | $1,160 | $1,200-$1,400 | 9th-10th |
| Arkansas | 0.63% | $1,260 | $1,300-$1,500 | 11th-12th |
Data Source: Rocket Mortgage Property Taxes by State (September 2025), The Motley Fool Property Taxes Report (September 2025), WalletHub Property Tax Rankings (February 2025), World Population Review Property Taxes (December 2025)
Property taxes in the cheapest states in the US in 2025 add another dimension to housing affordability, with rates varying from 0.27% to over 2.00% depending on location. While property taxes don’t directly correlate with overall cost of living, states with low tax rates provide significant long-term savings that compound over decades of homeownership. Hawaii maintains the lowest effective property tax rate at 0.27-0.28%, though this advantage diminishes somewhat given the state’s median home value of $615,300—the highest in the nation. Hawaiian homeowners pay approximately $1,723 annually in property taxes, which remains modest compared to high-tax states but reflects substantial home values rather than true affordability.
Alabama offers the second-lowest property tax rate at 0.39-0.41%, and when combined with the state’s low median home value of $147,200, produces the lowest annual property tax bills in the country at just $604. This creates a powerful affordability multiplier: buyers pay less for homes initially and then benefit from minimal ongoing tax obligations. A homeowner purchasing a $200,000 property in Alabama would pay approximately $780-$820 annually, compared to $4,460-$4,980 for the same home in high-tax states like New Jersey (2.23-2.49% rate) or Illinois (2.08% rate). Over a 30-year mortgage, this difference amounts to $110,000-$126,000 in savings—equivalent to the cost of a second home in some affordable markets.
West Virginia combines the nation’s lowest median home prices with a moderate 0.58% property tax rate, resulting in annual bills of approximately $850-$950 for median-valued homes. Arkansas (0.63%), Louisiana (0.55%), and Nevada (0.50%) also provide low-tax environments that enhance overall affordability. These rates contrast sharply with Northeast states where property taxes alone can exceed $8,000-$10,000 annually even on modestly priced homes. For retirees on fixed incomes and families managing tight budgets, property tax differentials represent a critical long-term cost consideration. States like Alabama, Louisiana, and West Virginia enable homeowners to maintain housing with minimal ongoing expenses, while Tennessee and Texas—though lacking state income taxes—impose higher property taxes that somewhat offset their income tax advantages. Buyers evaluating true housing costs must calculate total cost of ownership including mortgage payments, property taxes, insurance, and maintenance to determine genuine affordability over decades rather than focusing solely on purchase price.
Income Requirements and Wages in the Cheapest States in the US 2025
| State | Living Wage (Family of 4) | Median Household Income (Family of 4) | Income Surplus/Deficit | Median Household Income (All) | Unemployment Rate |
|---|---|---|---|---|---|
| Kansas | $89,353 | $92,980 | +$3,627 (Surplus) | $85,000-$87,000 | 2.5% |
| Iowa | $85,000-$88,000 | $92,000-$95,000 | +$5,000-$7,000 (Surplus) | $82,000-$84,000 | 2.8% |
| Alabama | $80,777 | $80,845 | +$68 (Break-even) | $72,000-$75,000 | 3.1% |
| Missouri | $82,000-$85,000 | $83,000-$86,000 | +$1,000-$3,000 (Surplus) | $78,000-$80,000 | 3.0% |
| West Virginia | $86,704 | $73,600 | -$13,104 (Deficit) | $67,000-$69,000 | 4.2% |
| Oklahoma | $86,333 | $78,458 | -$7,875 (Deficit) | $72,000-$74,000 | 3.3% |
| Mississippi | $80,523 | $70,656 | -$9,867 (Deficit) | $65,000-$67,000 | 3.7% |
| Arkansas | $78,000-$81,000 | $75,000-$78,000 | -$1,500-$3,000 (Deficit) | $69,000-$71,000 | 3.2% |
| Tennessee | $82,000-$85,000 | $84,000-$87,000 | +$1,000-$3,000 (Surplus) | $79,000-$81,000 | 3.0% |
| Ohio | $84,000-$87,000 | $85,000-$90,000 | +$1,000-$4,000 (Surplus) | $80,000-$82,000 | 3.4% |
Data Source: World Population Review Least Expensive States (December 2025), U.S. Census Bureau Current Population Survey (2025), State Labor Department Unemployment Data (2025)
Income requirements and wage levels in the cheapest states in the US in 2025 reveal critical distinctions between absolute affordability and relative economic well-being. The living wage represents the minimum income a family needs to cover basic expenses including housing, food, transportation, healthcare, and childcare without government assistance, while median household income indicates what families actually earn. States where median income exceeds living wage requirements demonstrate sustainable affordability, while those with income deficits face persistent economic challenges despite low costs.
Kansas stands out as the only affordable state where median income ($92,980) substantially exceeds living wage requirements ($89,353) for a family of four, creating a surplus of $3,627 annually. This surplus allows families to save for emergencies, invest for retirement, and enjoy discretionary spending—the hallmarks of genuine financial security. Kansas also maintains one of the nation’s lowest unemployment rates at 2.5%, indicating robust job markets despite affordable living costs. Iowa presents similar advantages with median incomes of $92,000-$95,000 exceeding living wages of $85,000-$88,000, producing $5,000-$7,000 annual surpluses. The state’s 2.8% unemployment rate and strong economies in agriculture, manufacturing, and emerging technology sectors create stable employment opportunities.
Alabama achieves near-perfect balance with median income of $80,845 essentially matching its $80,777 living wage requirement, creating a sustainable if modest economic situation. Missouri, Tennessee, and Ohio also demonstrate small income surpluses that enable families to meet obligations without severe financial stress. However, several affordable states face significant income shortfalls. West Virginia shows the largest deficit at -$13,104, where families need $86,704 annually but earn only $73,600 median income. This 15.1% gap explains the state’s fourth-highest poverty rate at 16% despite lowest-in-nation housing costs. Oklahoma (-$7,875 deficit) and Mississippi (-$9,867 deficit) face similar challenges, with Oklahoma’s 15% poverty rate and Mississippi’s nation-leading 20% poverty rate reflecting the consequences of inadequate incomes relative to even modest living costs.
These data underscore a crucial principle: low housing costs alone don’t guarantee financial well-being. States like Iowa and Kansas combine affordable living expenses with strong employment markets and wages that meet or exceed cost requirements, creating genuine economic opportunity. Conversely, states like West Virginia and Mississippi offer cheap housing but limited job prospects and wages insufficient to achieve comfortable living standards. For families considering relocation, evaluating both cost of living and income potential is essential, particularly for those whose employment depends on local job markets rather than remote work arrangements that allow importing higher salaries into affordable regions.
Cities with Best Quality of Life and Affordability in the US 2025
| City | State | Cost of Living vs National Average | Median Home Price | Key Quality Factors | Economic Strengths |
|---|---|---|---|---|---|
| Huntsville | Alabama | -14% | $280,000-$310,000 | NASA, aerospace hub; low crime; top schools | Tech-driven economy |
| Des Moines | Iowa | -10 to -15% | $240,000-$270,000 | Insurance capital; cultural amenities; top 5 safety | Agriculture, finance, tech |
| Fort Wayne | Indiana | -12 to -15% | $240,000-$260,000 | Revitalized downtown; strong job market | Healthcare, tech, manufacturing |
| Indianapolis | Indiana | -8 to -12% | $260,000-$285,000 | Major city amenities; easy navigation; sports hub | Logistics, healthcare, tech |
| Knoxville | Tennessee | -10 to -13% | $270,000-$295,000 | Gateway to Smoky Mountains; UT sports energy | Tourism, education, healthcare |
| Columbus | Ohio | -5 to -10% | $280,000-$310,000 | Ohio State University; diverse economy | Tech, education, logistics |
| Augusta | Georgia | -12 to -15% | $230,000-$260,000 | Masters Golf; military presence (Fort Eisenhower) | Military, healthcare, tourism |
| South Bend | Indiana | -14 to -16% | $230,000-$250,000 | Notre Dame; “City of Innovation” designation | Entrepreneurship, tech startups |
| Lincoln | Nebraska | -8 to -12% | $270,000-$295,000 | University of Nebraska; Haymarket District culture | Education, insurance, agriculture |
| Sioux Falls | South Dakota | -10 to -13% | $290,000-$320,000 | Falls Park; strong economy; central location | Healthcare, finance, tech |
Data Source: MakeMyMove Most Affordable Places to Live (2025), U.S. News Best Places to Live (2025), Niche City Rankings (2025), uhomes.com Cheapest States Analysis (2025)
Cities combining affordability with high quality of life in the US in 2025 demonstrate that low costs need not require sacrificing amenities, safety, or economic opportunity. These metropolitan areas offer the best value proposition for families and professionals seeking comprehensive lifestyle benefits alongside financial savings. Huntsville, Alabama leads this category, with costs approximately 14% below the national average and housing 30% cheaper than national norms despite median home prices of $280,000-$310,000—higher than rural Alabama but justified by exceptional local opportunities. As home to NASA’s Marshall Space Flight Center and major aerospace contractors, Huntsville boasts a robust tech-driven economy, low crime rates, highly ranked public schools, and extensive cultural amenities. The city exemplifies how specialized industry clusters can create high-wage employment in otherwise affordable regions.
Des Moines, Iowa consistently ranks among America’s most livable cities, combining costs 10-15% below national average with comprehensive quality-of-life factors. The city serves as the insurance capital of the United States, hosting major firms including Principal Financial and Nationwide, creating abundant white-collar employment. Median home prices of $240,000-$270,000 remain accessible, while the city’s top-5 safety ranking, well-maintained infrastructure, active neighborhood associations, and extensive cultural institutions including the Pappajohn Sculpture Park and Des Moines Art Center provide urban amenities. The Greater Des Moines Botanical Garden and numerous festivals foster community engagement rarely found in larger, expensive metros.
Fort Wayne, Indiana and Indianapolis demonstrate varying scales of affordability and amenities. Fort Wayne offers costs 12-15% below national average with revitalized downtown featuring new restaurants, breweries, art galleries, and entertainment venues. The city’s strong job market in healthcare, technology, and manufacturing supports economic stability, while affordable housing ($240,000-$260,000 medians) enables homeownership for young families. Indianapolis provides major city amenities at costs 8-12% below national average, with well-planned grid navigation, good public transportation, and famous sports culture including the Indianapolis 500 and strong professional sports presence.
Tennessee cities like Knoxville offer unique combinations of outdoor recreation and urban amenities. Positioned as the gateway to the Great Smoky Mountains, Knoxville provides costs 10-13% below national average while offering immediate access to America’s most visited national park. The University of Tennessee creates vibrant college-town energy, affordable sports entertainment, and cultural activities. No state income tax further enhances Tennessee’s appeal, allowing residents to retain more earnings. Columbus, Ohio presents a major metropolitan option with costs 5-10% below national average—modest savings but substantial when compared to similarly-sized coastal cities. Ohio State University creates intellectual energy, while diverse industries including technology, logistics, and healthcare provide employment stability.
Tax Environment and State Income Tax in Affordable States in the US 2025
| State | State Income Tax | Sales Tax Rate | Avg Property Tax Rate | Tax Environment Ranking | Overall Tax Burden |
|---|---|---|---|---|---|
| Tennessee | No State Income Tax | 7.00% | 0.63-0.75% | Top 5 Tax-Friendly | Low |
| South Dakota | No State Income Tax | 4.20% | 1.08-1.14% | Top 3 Tax-Friendly | Low |
| Florida | No State Income Tax | 6.00-7.00% | 0.86-0.98% | Top 10 Tax-Friendly | Low |
| Texas | No State Income Tax | 6.25% | 1.60-1.81% | Moderate (High Property Tax) | Moderate |
| Nevada | No State Income Tax | 6.85% | 0.50% | Top 15 Tax-Friendly | Low |
| Wyoming | No State Income Tax | 5.22% | 0.58-0.61% | Top 5 Tax-Friendly | Very Low |
| Alabama | 2.00-5.00% | 4.00% | 0.39-0.41% | Tax-Friendly | Low |
| Mississippi | 0.00-5.00% | 7.00% | 0.63-0.79% | Moderate | Moderate |
| Kansas | 3.10-5.70% | 6.50% | 1.33-1.41% | Moderate | Moderate |
| Oklahoma | 0.50-4.75% | 4.50% | 0.87-0.90% | Tax-Friendly | Low |
Data Source: Tax Foundation State Tax Rankings (2025), World Population Review Property Tax Data (December 2025), State Revenue Department Tax Rate Schedules (2025)
The tax environment in affordable states in the US in 2025 significantly impacts take-home income and long-term wealth accumulation, making it a critical factor in true cost-of-living calculations. Nine states impose no state income tax, and several of these rank among the most affordable overall. Tennessee leads among affordable states with no income tax, a moderate 7.00% sales tax, and reasonable property taxes of 0.63-0.75%, creating one of the nation’s most tax-friendly environments. For a household earning $75,000 annually, the absence of state income tax saves approximately $3,000-$4,500 compared to states with 4-6% income taxes—equivalent to 1-2 months of housing costs in affordable markets.
South Dakota offers perhaps the best overall tax environment with no income tax, lowest-in-nation 4.20% sales tax, and moderate property taxes around 1.08-1.14%. The state consistently ranks in the top three nationally for tax-friendliness. Wyoming similarly imposes no income tax and maintains the nation’s fourth-lowest sales tax at 5.22% along with property taxes of 0.58-0.61%. These states enable residents to retain more earnings, accelerating savings and investment capabilities. Florida, Nevada, and Texas also forego income taxes, though Texas compensates with higher property taxes of 1.60-1.81% that can substantially impact homeowners. A $300,000 home in Texas incurs approximately $4,800-$5,430 annual property taxes, compared to $1,170-$1,230 for the same home in Alabama.
Income tax states among affordable options show varying approaches. Alabama imposes modest 2.00-5.00% income taxes paired with the nation’s lowest property taxes (0.39-0.41%) and reasonable 4.00% sales tax, creating overall low tax burden. Mississippi charges 0.00-5.00% income tax (eliminating tax on first income brackets) with 7.00% sales tax and moderate property taxes. Oklahoma taxes income at 0.50-4.75% with the lowest 4.50% sales tax among affordable states and manageable 0.87-0.90% property taxes. Kansas presents higher overall taxation with 3.10-5.70% income tax and 1.33-1.41% property taxes, though still maintains affordability through low housing costs.
The strategic advantage of zero-income-tax states compounds over time, particularly for high-income remote workers and retirees with substantial retirement account distributions. A professional earning $150,000 annually in Tennessee saves approximately $7,500-$9,000 compared to paying 5-6% state income tax elsewhere—over $225,000-$270,000 across a 30-year career. However, sales taxes and property taxes must be factored into total calculations. States without income taxes often compensate through other revenue sources, though strategic consumption and housing choices can minimize these impacts. For retirees, several states also exempt Social Security income and provide pension exemptions, with Mississippi, Alabama, and Arkansas offering particularly generous retirement income treatments that enhance their value for fixed-income seniors.
Employment and Economic Opportunities in Affordable States in the US 2025
| State | Unemployment Rate | Major Industries | Top Employers | Average Hourly Wage | Job Growth Projection |
|---|---|---|---|---|---|
| South Dakota | 2.0-2.1% | Healthcare, finance, agriculture, tourism | Sanford Health, Avera, Citibank | $28-$32 | Strong |
| North Dakota | 2.1-2.3% | Energy, agriculture, technology | Microsoft, Amazon, Basin Electric | $32-$36 | Moderate |
| Kansas | 2.5% | Aviation, agriculture, healthcare, IT | Spirit AeroSystems, Cargill, Garmin | $30-$34 | Stable |
| Iowa | 2.8% | Agriculture, insurance, manufacturing, tech | Principal Financial, John Deere, Hy-Vee | $29-$33 | Stable-to-Strong |
| Tennessee | 3.0% | Healthcare, automotive, logistics, tourism | HCA Healthcare, Nissan, FedEx | $28-$32 | Strong |
| Missouri | 3.0% | Aerospace, financial services, agriculture, tech | Boeing, Express Scripts, Monsanto | $28-$32 | Moderate |
| Alabama | 3.1% | Aerospace, automotive, steel, defense | NASA Marshall, Mercedes-Benz, Hyundai | $27-$31 | Stable |
| Arkansas | 3.2% | Agriculture, retail, manufacturing | Walmart, Tyson Foods, J.B. Hunt | $26-$30 | Moderate |
| Oklahoma | 3.3% | Energy, aerospace, agriculture, technology | Devon Energy, American Airlines, Boeing | $27-$31 | Moderate |
| Mississippi | 3.7% | Agriculture, manufacturing, shipbuilding, casinos | Ingalls Shipbuilding, Nissan, MGM | $25-$29 | Weak-to-Moderate |
Data Source: U.S. Bureau of Labor Statistics State Employment Data (November 2025), State Economic Development Agencies (2025), Federal Reserve Economic Data (2025)
Employment opportunities in the cheapest states in the US in 2025 vary dramatically, with some affordable states offering robust job markets while others struggle with limited opportunities and stagnant wages. South Dakota boasts the nation’s lowest unemployment rate at 2.0-2.1%, indicating virtually full employment and strong employer competition for workers. The state’s economy centers on healthcare (Sanford Health, Avera), financial services (Citibank’s major operations in Sioux Falls), agriculture, and tourism driven by Mount Rushmore and the Black Hills. Average hourly wages of $28-$32 combine with no state income tax to provide solid purchasing power in an affordable cost environment.
North Dakota similarly maintains 2.1-2.3% unemployment with a diversified economy extending beyond its historical oil and gas dominance. Recent tech investments by Microsoft and Amazon establishing data centers in the state create high-wage opportunities, while traditional employers like Basin Electric Cooperative provide stable energy-sector jobs. Average hourly wages of $32-$36—among the highest in affordable states—enable strong savings rates when combined with reasonable costs. Kansas achieves 2.5% unemployment with a balanced economy including aviation manufacturing (Spirit AeroSystems, a major Boeing supplier), agriculture (Cargill grain operations), and technology (Garmin’s headquarters in Olathe). Iowa’s 2.8% unemployment reflects strong economies in insurance (Principal Financial, Nationwide), agriculture equipment (John Deere), and food services (Hy-Vee grocery chain).
Tennessee demonstrates how strategic business climate policies attract major employers despite affordable costs. The state’s 3.0% unemployment, no income tax, and right-to-work laws have attracted automotive plants (Nissan, General Motors), healthcare giants (HCA Healthcare’s Nashville headquarters), and logistics operations (FedEx’s Memphis hub). Job growth projections remain strong as companies continue relocating from expensive states. Missouri similarly leverages central location and business-friendly policies to maintain aerospace (Boeing’s St. Louis operations), agricultural biotech (Monsanto/Bayer), and pharmaceutical logistics (Express Scripts).
However, some affordable states face employment challenges. Mississippi’s 3.7% unemployment—highest among affordable states—combines with weak-to-moderate job growth projections and lowest average wages at $25-$29 hourly. Major employers including Ingalls Shipbuilding and Nissan’s Canton plant provide stability, but limited economic diversification constrains opportunity. West Virginia faces similar challenges with 4.2% unemployment and an economy still transitioning away from coal mining without adequate replacement industries. These employment realities explain why states like Kansas and Iowa demonstrate income surpluses (median income exceeds living wage) while Mississippi and West Virginia show deficits despite similarly low living costs. For job seekers and families dependent on local employment, evaluating both unemployment rates and wage levels is essential. Remote workers can maximize value by importing higher coastal salaries to affordable regions, while local-market employees must ensure that available wages genuinely support comfortable living standards.
Healthcare Access and Quality in the Cheapest US States in 2025
| State | Hospitals per 100,000 Residents | Primary Care Physicians per 100,000 | Healthcare Quality Ranking | Medicaid Expansion Status | Average Health Insurance Premium |
|---|---|---|---|---|---|
| Iowa | High (3.2-3.5) | 89 | Top 15 Nationally | Expanded | $460-$520/month |
| Kansas | Moderate (2.5-2.8) | 82 | Top 20 Nationally | Not Expanded | $480-$540/month |
| South Dakota | High (3.0-3.3) | 95 | Top 20 Nationally | Expanded | $450-$510/month |
| Nebraska | High (3.1-3.4) | 97 | Top 15 Nationally | Expanded | $470-$530/month |
| Missouri | Moderate (2.3-2.6) | 78 | Top 30 Nationally | Expanded (2023) | $490-$550/month |
| Alabama | Moderate (2.4-2.7) | 68 | Bottom 15 Nationally | Not Expanded | $440-$500/month |
| Tennessee | Moderate (2.5-2.8) | 75 | Mid-Range | Not Expanded | $460-$520/month |
| Oklahoma | Low (2.0-2.3) | 65 | Bottom 20 Nationally | Not Expanded | $470-$530/month |
| Mississippi | Low (1.8-2.1) | 52 | Bottom 5 Nationally | Not Expanded | $450-$510/month |
| West Virginia | Moderate (2.6-2.9) | 85 | Bottom 15 Nationally | Expanded | $500-$560/month |
Data Source: America’s Health Rankings (2025), Kaiser Family Foundation State Health Data (2025), U.S. News Healthcare State Rankings (2025), State Health Department Reports (2025)
Healthcare access and quality in the cheapest US states in 2025 presents mixed results, with some affordable states offering excellent medical infrastructure while others struggle with provider shortages and poor health outcomes. Iowa leads affordable states with high hospital density (3.2-3.5 per 100,000 residents), 89 primary care physicians per 100,000, and rankings in the top 15 nationally for healthcare quality. The state expanded Medicaid in 2014, providing coverage to lower-income residents and supporting rural hospitals financially. Major health systems including UnityPoint Health and University of Iowa Hospitals offer comprehensive tertiary care, while smaller communities maintain local hospitals providing emergency and routine services.
South Dakota similarly provides strong healthcare access with 3.0-3.3 hospitals per 100,000, 95 primary care physicians per 100,000 (among the highest in affordable states), and top-20 national quality rankings. Sanford Health and Avera operate extensive networks spanning the Dakotas, Minnesota, and neighboring states, bringing big-system resources to small towns. Nebraska matches these standards with 3.1-3.4 hospitals per 100,000, 97 physicians per 100,000, and top-15 quality rankings. All three states expanded Medicaid, improving healthcare access for working-class families. Average health insurance premiums in these states range from $450-$530 monthly, reflecting moderate healthcare costs that enhance overall affordability.
Conversely, several affordable states face significant healthcare challenges. Mississippi reports the lowest physician density at 52 per 100,000, minimal hospital infrastructure at 1.8-2.1 per 100,000, and ranks in the bottom five nationally for healthcare quality. The state refused Medicaid expansion, leaving approximately 100,000 residents in a coverage gap—earning too much for traditional Medicaid but too little to qualify for Affordable Care Act subsidies. This creates a paradox where low costs matter less if residents can’t access needed medical care or face catastrophic expenses from preventable conditions. Oklahoma similarly struggles with 65 physicians per 100,000, low hospital density, and bottom-20 quality rankings, compounded by Medicaid non-expansion until a 2020 ballot initiative that implementation challenges delayed.
Alabama and West Virginia present contradictions: both states expanded Medicaid (West Virginia in 2014, Alabama considering expansion), yet still rank in the bottom 15 nationally for healthcare quality due to high rates of chronic diseases, limited preventive care utilization, and social determinants including poverty and education levels. Tennessee, despite not expanding Medicaid, maintains mid-range healthcare quality through innovative TennCare managed care programs, though access remains problematic in rural counties. For families with chronic conditions, disabilities, or elderly members requiring regular medical care, healthcare infrastructure becomes a critical relocation factor. Iowa, South Dakota, and Nebraska combine affordability with strong healthcare access, making them optimal for health-conscious families. States like Mississippi and Oklahoma may offer the lowest costs but potentially require traveling significant distances for specialized care or accepting limited local healthcare options.
Education and Schools in the Most Affordable States in the US 2025
| State | K-12 Education Ranking | High School Graduation Rate | College Affordability Ranking | Top Public Universities | Student-Teacher Ratio |
|---|---|---|---|---|---|
| Iowa | Top 10 Nationally | 91-93% | Top 15 | University of Iowa, Iowa State | 14:1 |
| Kansas | Top 15 Nationally | 86-88% | Top 20 | University of Kansas, Kansas State | 13:1 |
| Nebraska | Top 15 Nationally | 88-90% | Top 25 | University of Nebraska | 14:1 |
| Missouri | Top 20-25 Nationally | 89-91% | Top 30 | University of Missouri, Missouri S&T | 13:1 |
| Indiana | Top 20-25 Nationally | 87-89% | Top 20 | Indiana University, Purdue University | 16:1 |
| Ohio | Top 25 Nationally | 85-87% | Top 30 | Ohio State University, Miami University | 16:1 |
| Tennessee | Mid-Range | 88-90% | Top 25 | University of Tennessee | 15:1 |
| Alabama | Bottom 15 Nationally | 89-91% | Top 35 | Auburn University, University of Alabama | 16:1 |
| Oklahoma | Bottom 20 Nationally | 83-85% | Top 30 | University of Oklahoma, Oklahoma State | 16:1 |
| Mississippi | Bottom 5 Nationally | 85-87% | Top 40 | University of Mississippi, Mississippi State | 15:1 |
Data Source: U.S. News K-12 State Rankings (2025), National Center for Education Statistics (2025), Education Week Quality Counts (2025), College Board Affordability Reports (2025)
Education quality in the cheapest states in the US in 2025 represents a critical consideration for families with children, as K-12 school quality varies dramatically across affordable regions. Iowa achieves top-10 national rankings for K-12 education with 91-93% high school graduation rates, excellent student-teacher ratios of 14:1, and consistent high performance on national assessments. The state invests heavily in education infrastructure, teacher salaries, and comprehensive programs. Iowa’s colleges including the University of Iowa (strong healthcare and liberal arts), Iowa State University (top engineering), and numerous affordable community colleges provide excellent higher education access. In-state tuition remains manageable, with total costs significantly below national averages.
Kansas and Nebraska similarly prioritize education, ranking in the top 15 nationally with graduation rates of 86-90% and student-teacher ratios of 13-14:1. Kansas benefits from strong local school district funding and competitive teacher compensation, while Nebraska maintains excellent rural school systems that defy typical small-town educational challenges. Both states offer respected flagship universities—University of Kansas, Kansas State University, University of Nebraska—with strong academic reputations and affordable tuition. Missouri and Indiana maintain top 20-25 national rankings, with universities including University of Missouri (flagship), Missouri S&T (top engineering), Indiana University (strong business and law), and Purdue University (elite engineering and agriculture).
However, some affordable states struggle with educational quality. Mississippi ranks in the bottom five nationally for K-12 education despite respectable 85-87% graduation rates. The state faces challenges including inadequate school funding, teacher shortages, and poor performance on national assessments. Students in Mississippi score significantly below national averages in reading and mathematics proficiency. Oklahoma ranks in the bottom 20 with similar struggles including teacher strikes in recent years over inadequate compensation and school funding cuts. Alabama ranks in the bottom 15, though specific districts—particularly in Huntsville with its aerospace-educated population—perform significantly better than state averages.
These disparities create a paradox for families: the lowest-cost states often provide weaker education while moderately affordable states like Iowa and Kansas combine reasonable costs with excellent schools. For families with school-age children, prioritizing education quality may justify choosing $200,000 homes in Iowa over $140,000 homes in Mississippi. The long-term value of strong K-12 education—including better college preparation, higher graduation rates, and improved lifetime earning potential—often outweighs short-term housing savings. College affordability also varies, with most affordable states offering in-state tuition of $8,000-$12,000 annually at flagship universities, compared to $35,000-$60,000 at many private institutions or out-of-state publics. States offering strong public university systems like Iowa, Kansas, Indiana, and Ohio enable families to complete bachelor’s degrees with minimal debt.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
