16 US states with the lowest cost of living, ranked

Why living well doesn’t have to cost a fortune

Imagine living in a place where the cost of living feels lighter, your paycheck stretches further, and you’re still surrounded by everything you need to thrive.

In 2025, the U.S. will have plenty of states where affordability meets quality of life, offering the perfect balance for families, remote workers, or anyone seeking more value for their money.

Here are 16 of the top affordable states for 2025, ranked by U.S. News & World Report. From charming small towns to thriving cities, these states prove that affordable living doesn’t have to mean settling for less.

Arkansas

Arkansas offers one of the lowest costs of living in the U.S., making it a top destination for budget-conscious individuals. Housing costs are well below the national average, with affordable options in both urban and rural areas.

The state also boasts rich natural beauty, including the Ozark Mountains and Hot Springs National Park. Arkansas’ low-cost living combined with scenic landscapes makes it an ideal place for those seeking a peaceful yet affordable lifestyle.

Mississippi

Mississippi ranks second for affordability, with a cost of living that is significantly below the national average. Housing is the most affordable aspect, making it a great option for families and retirees looking to settle down.

In addition to its affordability, Mississippi is rich in cultural history. From the Mississippi River to the blues music that originated here, the state offers a vibrant lifestyle without breaking the bank.

West Virginia

West Virginia is known for its rugged mountains and low cost of living. Housing is especially affordable, with the median home price far below the national average, making it attractive for homebuyers.

The state offers a peaceful, rural lifestyle surrounded by natural beauty. Outdoor enthusiasts will enjoy hiking, mountain biking, and rafting in the Appalachian region.

South Dakota

South Dakota stands out with its lack of state income tax, which helps make the cost of living significantly lower. Affordable housing and lower property taxes also contribute to the state’s budget-friendly appeal.

In addition to its low costs, South Dakota offers stunning landscapes, including the Black Hills and Mount Rushmore. It’s an excellent choice for people looking to live affordably while enjoying a peaceful, beautiful environment with minimal taxes.

Oklahoma

Oklahoma offers a strong economy and affordable living. Housing costs are low, and utilities are cheaper than in many other parts of the country, which helps families stretch their budget.

The state’s economy is diverse, with significant contributions from energy, agriculture, and manufacturing. Major cities like Oklahoma City and Tulsa offer urban amenities at a fraction of the cost found in larger metropolitan areas.

Louisiana

Louisiana has a cost of living well below the national average, with inexpensive housing, utilities, and food. The state’s affordability is complemented by its vibrant cultural scene, offering something unique for residents.

From New Orleans’ famous French Quarter to the bayous and Cajun cuisine, Louisiana offers a rich cultural experience at a low cost. Its distinctive lifestyle makes it an ideal place for those who want to enjoy a lively culture on a budget.

Iowa

Iowa boasts a cost of living that’s lower than the national average, particularly in housing. Small cities and rural areas offer affordable housing with ample space, making it ideal for families and those looking for a slower pace of life.

The state is also known for its strong sense of community, excellent education system, and safe neighborhoods. Plus, Iowa offers a welcoming environment with plenty of opportunities.

Alabama

Alabama offers an affordable cost of living, with housing costs much lower than the national average. This makes it an attractive destination for people looking to own property or rent at affordable rates.

The state is also rich in history, from the Civil Rights Movement to its famous southern cuisine.

Cities like Birmingham and Huntsville provide a blend of modern amenities and deep Southern charm, making Alabama an affordable and culturally enriching place to live.

North Dakota

North Dakota offers a very low cost of living, especially in housing and groceries. Despite its low population density, the state offers good infrastructure and a solid economy, driven by agriculture, energy, and technology.

Cities like Fargo offer a mix of affordability and job opportunities, especially in healthcare and technology sectors. For those looking for professional opportunities in a growing state, North Dakota is a great option.

Kentucky

Kentucky has a low cost of living, especially in housing and transportation. With a median home price far below the national average, it is one of the most affordable states to live in.

Beyond affordability, Kentucky is known for its rich cultural heritage, including the Kentucky Derby and its world-famous bourbon.

Whether you are seeking a quiet countryside home or vibrant city life in Louisville or Lexington, Kentucky, offers an affordable yet culturally rich living experience.

Kansas

Kansas offers an affordable cost of living, particularly in housing. The state has one of the lowest median home prices in the U.S., making it an attractive option for homebuyers.

Kansas also offers a slower pace of life with beautiful plains, affordable healthcare, and a strong sense of community.

The state’s agricultural economy and family-friendly environment make it a great choice for families or those seeking a more peaceful lifestyle.

Nebraska

Nebraska has a relatively low cost of living, especially when it comes to housing and healthcare. The state’s economy is robust, with agriculture and manufacturing sectors playing key roles.

Cities like Omaha and Lincoln offer job opportunities while maintaining affordable living costs. Whether you’re moving for work, family, or retirement, Nebraska’s strong economy and affordable lifestyle make it an appealing choice for many.

New Mexico

New Mexico isn’t just known for its breathtaking sunsets and stunning desert landscapes; it’s also one of the most affordable states to live in.

Here, you can find charming adobe homes and low-cost living in cities like Albuquerque, where art, culture, and history come alive.

Whether you’re a fan of Southwestern cuisine or eager to explore ancient Native American ruins, New Mexico offers a vibrant lifestyle that won’t stretch your budget.

Missouri

Missouri might be known for its historical significance, but it’s also a fantastic place to call home without spending a fortune.

Cities like St. Louis and Kansas City offer a combination of low housing costs and urban amenities, making them perfect for anyone seeking a mix of affordability and excitement.

From the iconic Gateway Arch to the lively music scene, Missouri brings history to life, and you’ll enjoy it all with some of the most affordable living costs in the country.

Montana

Montana’s appeal goes far beyond its stunning landscapes. While you might imagine the rugged mountains and wild rivers, you might not expect to find some of the lowest living costs in the West.

Whether you’re skiing in winter or hiking in summer, living in Montana means access to all the beauty of nature at a price that won’t break your bank.

If you’re craving wide-open spaces and a laid-back lifestyle, Montana has it all, at a fraction of the cost. If you haven’t made it to Montana yet, it’s time to plan a quick getaway, check out these 10 most beautiful towns in Montana for your next mini vacation.

Ohio

Ohio offers a surprising mix of affordable living with city energy. Cities like Columbus and Cleveland are bursting with opportunity and culture, yet still offer housing prices that are significantly lower than major cities like New York or Chicago.

Whether you’re exploring world-class museums, enjoying the food scene, or experiencing Ohio’s famous college football culture, you’ll do it all while keeping more money in your pocket.

Discover the best Ohio September flea markets and antique fairs.

Which of these affordable states would you love to call home? Drop a comment and let us know.

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This slideshow was made with AI assistance and human editing.