10 States in the U.S. with the Lowest Cost of Living; Affordable Housing

TEMPO.CO, Jakarta - Cost of living is still a prominent issue for people of all economic backgrounds in the United States (U.S.). Generally, cost of living means the amount of cost one needs to pay to live somewhere. Housing expenses, groceries prices, utilities, transportation fees, health care, taxes, and miscellaneous goods as well as services fall under the umbrella of cost of living.

If you are currently struggling to find the cheapest states to live in, scroll down through this page to find out more.

Top 10 States with the Lowest Cost of Living

This article reveals the top 10 states with the lowest cost of living, as cited from US News, Ramsey Solutions, and Forbes :

1. Arkansas 

Citing from the US News, Arkansas ranks first as the state with the lowest cost of living based on the regional price parity data from the Bureau of Economic Analysis. The natural state won first place in affordability, with the cost of living index reaching 86.6 from an overall 100 national points. 

The median household income in Arkansas is around US$55,432 while the median monthly rent for a two-room apartment lies at US$1,375.

2. Mississippi 

Mississippi is the second state with the lowest cost of living, showing a chart of median household income at US$52,719. Mississippi has a fairly low median monthly rent that reaches figures of US$1,450 for a two-bedroom apartment. 

Famous for the top-notch agriculture and forestry industries, Mississippi boosts a natural environment, ranking at 20th place. The state is also widely recognized to be the top producer for the country’s sweet potatoes, pulpwood, and cotton.

3. Alabama 

Alabama ranks third in affordability, as the median household income stays at US$59,674. The cost of living index in Alabama demonstrates an 87.8 point out of 100.00 national points. Interestingly, Alabama ranks in the higher state of fiscal stability at 39th place.

4. Iowa 

Iowa is among the states with the lowest cost of living, highlighting its capability to produce exceptional farm goods such as milk, chicken, eggs, corn, and soybeans. Also known as the nation’s largest cereal mills, Iowa has machinery production as its major industry.

The overall cost of living index in Iowa stays at 88.4 points, with median household income pricing at US$74,755. It’s pretty easy to find an affordable two-bedroom apartment in Iowa since the state's median monthly rent shows at US$1,100.

5. Oklahoma 

Oklahoma ranks sixth in affordability, with a median household income ranging at US$59,673. The state’s economy is highly dependent on the natural gas and oil industries. 

While the median monthly rent at the state stays at US$1,395, this small town faces the threat of a natural disaster. Oklahoma reportedly suffered more than 170 tornadoes since the 1890s.

6. West Virginia 

West Virginia is one of the cheapest states to live in, winning the fourth place in the affordability category. The state has an 89.2 point cost of living index, demonstrating a US$54,329 median monthly household income. 

The median monthly rent for two-bedroom apartments is even lower, showing figures of US$900. No wonder the state is an attractive destination for emigrants.

7. Kansas

Kansas has a fairly high point on the cost of living index, showing a number at 90.00. As a major producer of beef, wheat, and grain sorghum, the state’s median household income stays at US$68,925. 

Kansas features a number of occupied farms, with the median monthly rent for a two-bedroom apartment ranging at US$1,250.

8. Missouri 

Missouri is among the cheapest states to live in, with a median household income ranging at US$64.811. The states scored a high point of 91.1 for the cost of living index. 

Missouri is the home base for several professional sports teams, such as the Blues, the Chiefs, the Cardinals, and the Royals. Additionally, the median monthly rent for a two-bedroom apartment in Missouri ranges at US$1,300.

9. Tennessee 

Tennessee’s median household income stays at US$65.254. Despite ranking at 18th place in affordability, the state has a 91.8 point cost of living index. 

Tennessee's economy is best supported by a range of non-agricultural businesses, such as manufacturing and mining, as well as the logging and construction industries. Additionally, the package-shipping giant FedEx is also headquartered in the state.

10. Georgia 

Georgia ranks last in the top 10 states with the lowest cost of living, supporting a 95.8 point cost of living index. The state’s median household income is US$72,837, with the median monthly rent staying at US$2,000.

These states with the lowest cost of living offer affordable housing compared to the average monthly rent of the country.

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