Cheapest State to Live in the USA

When you are searching for the best state in the USA to call your home, the first thing that will come to your mind is the cost of living. Cost of living is described as the amount of money needed to sustain a standard of living by managing some of the basic expenses like housing, food, taxes, and health care. Cost of living is often used as an indicator to decide how expensive it is to live in city or state versus another.

Although the U.S. Government has not released any official comparison between the states regarding the cost of living index, there are some independent research organizations, like the Council for Community and Economic Research,  who have undertaken some research activities to figure out the cost of living index of the various States in the U.S.

Living in USA

Based on the information from various sources, we have been able to deduce the ranking of the 10 states with the least cost of living in The USA. Here are the names of the States in descending order. The index scores indicated here are compared with a score of 100, which is taken as a national benchmark. Scores below 100 signify prices are cheaper than the national average.

1. Kentucky

Reasonably low housing costs are the most eminent contributor to the attractive overall cost of living in the Bluegrass State. Off course fried chicken and necessities are cheap but so is the housing. If you consider the housing index of 80.5 versus the national index of 100, the accommodation costs are much cheaper compared to other states in the U.S. Not only are the accommodation costs lower, affordable healthcare (88.7) and grocery (88.9) price index also makes Kentucky a great place to live.

Kentucky USA

2. Texas

Not only does the Lone Star State boasts of the cheap and best quality beef fajitas and Texas Trinity that is brisket sausage and ribs, but it also brags about the overall low cost of living index, which is currently around 90.7. Affordable accommodation costs are the most significant contributor to the overall cost of living index. Low cost of land along with a supportive government approach to development and construction by minimizing red tape contributes to an affordable housing market.

The housing index is 84.5, Grocery is around 89.5 and transportation is around 93.7. All these indexes are below the national median of 100. These relatively low index help keep Texas affordable. So if you are looking for the bang for your buck then Texas is a great place to live in.

Texas USA

3. Kansas

With the overall cost of living index hovering around 90.4 the Sunflower State ranks as the 8th most affordable state to live in the U.S. The cost of housing in Kansas is remarkably lower (77.4). Low rental and purchase price of homes helps in making Kansas the state with the 8th lowest cost of living index in the country. The cheap real estate prices act as a catalyst to bring down the housing index in the state.

Kansas USA

4. Mississippi

If you want to get more bounce for the ounce considers moving to Mississippi. Mississippi is considered as the third most affordable state in the country in the context of housing index. Research carried out by the Missouri Economic Research Center and Information center shows that housing costs are 16 percent lower than the average cost nationwide. Magnolia State also has the lowest cost of living and in fact, after taxes and living expenses, residents of Mississippi can keep around 49% of their income.

Mississippi USA

5. Tennessee

The cost of living in the Volunteer State is quite modest. Supported by the lower median healthcare, grocery, and transportation index, Tennessee is one of the most sought after State to stay. The state boasts of providing the best Wi-Fi in the country, where the internet speed is 50 times quicker than the national average. Along with the best Wi-Fi, you will love to gorge on the world famous Memphis Barbecue and if it is coupled with some blues and country music to celebrate, then what more do you need to consider in choosing your destination?


6. Idaho

Idaho offers the cheapest groceries among any state in the U.S. The healthy price competition provided by the Boise based company WinCo Foods aids in keeping the cost of food items under control. The low cost of food items assists in the overall cost of living of the Gem State. Cheap food, combined with economical housing helps Idaho enjoy the 6th rank among the most affordable state in the country. Idaho has recently ranked as the number one state for homeownership, thanks to its affordability and low foreclosure rates.


7. Oklahoma

Oklahoma ranks fifth for overall cost of living, a lot can be attributed to the low costs for common goods like groceries. CNBC has ranked it as the third most affordable place to live. The average home price in the Sooner State is 50 percent below the national average; it also has median rents around $800 per month which is also lower than the national average.

Oklahoma USA

8. Arkansas

It was considered as the 20 Best affordable places to live in the U.S by U.S News and World Reports a couple of years ago. You can find remarkably cheap, mouthwatering, pork sausages, but that is not the only attraction that makes Arkansas one of the most affordable state, the Razorback State also gloats about the cheapest commuting times in the nation. The state’s overall cost of living index is sustained by low housing, health and transportation costs.

Littlerock Arkansas USA

9. Michigan

The Wolverine State gave to the world the humble cornflakes. Invented by the Kellogg Brothers to serve inmates at their Battle Creek sanitarium, Kellogg’s cornflakes has traveled almost the entire globe and if you are trying corn flakes for your breakfast every day then you should owe it to the Kellogg Brothers from Michigan. There is a lot to enjoy about Michigan. Michigan has more freshwater shoreline than any other state in the U.S. Apart from freshwater shoreline Michigan boasts of having the highest number of golf courses in the country. The affordability of the Wolverine State is bolstered by the low housing index, grocery, and healthcare.

Michigan USA

10. Indiana

The Hoosier State is considered to be one of the best places to live affordably in the U.S. Along with smaller towns and cities that typically provide inexpensive lifestyle compared to other cities in many states, Indianapolis is one of the most affordable cities in the country. The price Hoosiers pay for gasoline is 40 percent less than what they would pay in other big cities. Indiana is luring job seekers nationwide by creating thousands of new tech jobs.


While searching for the best state to consider your home, cost of living plays an important part. In addition to the cost of living you should also consider other factors such as crime rate, weather, neighborhood, and personal well-being.

Knowing the most affordable state, however, can be a useful tool in your research. Our article will give you insight into some of the most inexpensive states in the U.S as we have listed above some of the cheapest states in the country. Hopefully, you will find this article helpful.

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Pursuing MCA from the University of Delhi, Saurabh Saha is an experienced blogger and internet marketer. Through his popular technology blogs: TechGYD.COM &, he is helping several brands to gain exposure in front of high-quality web visitors.