In an era of rising national expenses, discovering the least expensive states to live in can feel like uncovering a hidden treasure. Imagine getting more house, more freedom, and more financial breathing room without sacrificing quality of life. From compact urban hubs to sprawling countryside towns, the cheapest states to live in in 2025 all share one thing—your paycheck stretches further here. Here’s your comprehensive, updated guide to the least expensive states to live in the US, where affordability meets opportunity.

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1. Mississippi – The Affordable Heart of America

Mississippi firmly stakes its claim as the cheapest state to live in, with a cost-of-living index at just 83.3 (compared to the U.S. average of 100). What does this mean for your budget? A single-family home typically sells for around $180,000, and you can find two-bedroom rentals for about $896. Utilities, groceries, and transportation are also well below national norms. With no state tax on retirement income (including Social Security), Mississippi is consistently ranked among the least expensive states to live in the US for both young professionals and retirees.

Statistics:

• Regional Price Parity: 0.84—your dollar goes 16% further
  
  
• Median home price: ~$151K; median rent: ~$900/month
  
  
• Zero retirement income tax: great for seniors

2. Arkansas – Where Value Meets Vibrancy

Ranked among the least expensive states to live in the US, Arkansas offers an impressive cost-of-living index of 90.3, roughly 10% less than the national average. Median home prices hover under $163,000 while rents remain affordable at around $868 a month, making Arkansas appealing for cost-conscious families and career starters. But don’t mistake low costs for low opportunity—Arkansas is growing with strong job sectors in agriculture, logistics, and education.

Here’s what makes Arkansas shine:

• Median home price: ~$162,400; rent: ~$868
  
  
• Overall cost of living: ~10% below U.S. average
  
  
• Emerging industries: agribusiness, distribution, education

3. West Virginia – Affordable Living Amid Natural Beauty

West Virginia continues its legacy as one of the least expensive states to live in, with a cost index near 90.3—about 10% below the national average . What captures attention the most is housing: the median home price is just $163,700, the lowest among all 50 states . Rents are under $900, and the state’s outdoor lifestyle—mountains, forests, low population density—adds lifestyle value to its financial one.

More reasons West Virginia shines:

• Median home price: ~$163,700, the national lowest
  
  
• Living cost: ~10% lower than U.S. average
  
  
• Lifestyle benefits: hiking, fishing, and affordable rural living

4. Oklahoma – Economic Comfort with Cultural Flavor

Oklahoma ranks high among the least expensive states to live in the US, thanks to a cost-of-living index of just 86—about 14% less than the national average . Real estate remains affordable with a median home price of $170,500 and monthly rentals around $935—yet job sectors in energy, aviation, and healthcare offer real career prospects . No state income tax on retirement income adds another dimension to its budget-friendly profile.

Highlighting Oklahoma’s value:

• Median home price: ~$170,500; rent: ~$935
  
  
• No tax on retirement income
  
  
• Growing industries: energy, aerospace, healthcare

5. Kansas – Where Affordable Meets Balanced

Kansas, a consistently featured name among cheapest states to live in, offers well-rounded affordability: 12% below the national cost index, with median home prices around $240,000, according to Zillow. What makes Kansas unique is its grocery and healthcare costs—some of the lowest in the nation . With employment opportunities in manufacturing, agriculture, and healthcare sectors, Kansas is building a more complete infrastructure for newcomers.

• Home price: ~$240,000
  
  
• Below-average grocery and healthcare costs
  
  
• Industries growing: manufacturing, agriculture, healthcare

6. Alabama – Southern Comfort at Low Cost

Alabama secures its spot among the least expensive states to live in, with a cost-of-living index of 87.9 . Median housing is around $179,400, and monthly rent averages $925 . Beyond affordability, Alabama’s tax benefits—including no tax on retirement income—solidify its appeal as an economic haven. Alabama’s affordability, cultural tradition, and mild winters make it one of the true least expensive states to live in.

Why Alabama works:

• Median home cost: ~$179,400; rent: ~$925
  
  
• Health, transportation, rent are below national averages
  
  
• Retirement income remains untaxed

7. Indiana – Balanced Affordability with Growth

Rounding out our list is Indiana, another standout among least expensive states to live in the US, with costs roughly 12% lower than average. According to Zillow, median home costs ($253,000) and rent ($1300/month) stay competitive, and the state boasts strong job markets—especially in Indianapolis, with growing sectors in logistics, pharmaceutical, and healthcare .

What Indiana brings:

• Median home: ~$253,000; rent: ~$967
  
  
• Cost index: 88–90 (12% under national)
  
  
• Healthy job sectors and civic amenities

Why These Are the Least Expensive States to Live In in 2025

What ties together these seven states is a powerful combination of low housing costs, affordable living essentials, and tax-friendly policies—without sacrificing economic opportunity. They all offer:

• Median home prices between $150K–190K—nearly half the cost of homes in high-priced coastal states
  
  
• Rents consistently under $1,000/month for a decent two-bedroom
  
  
• Cost-of-living indices ranging from 84–90, far below the U.S. average at 100
  
  
• Tax advantages—like exemptions on retirement income or low state income tax
  
  
• Employment in diverse sectors, from healthcare to energy, logistics to education

Practical Money Moves

Here’s how choosing one of the least expensive states to live in can boost your bottom line:

1. Affordable Housing – Save $50K–100K on home price vs. high-cost states
   
   
2. Lower Monthly Expenses – Keep more of your income as grocery, gas, and utility costs drop
   
   
3. Tax Breaks – More disposable income when retirement earnings aren’t taxed
   
   
4. Lifestyle Choices – Spend on experiences, not monthly bills
   
   
5. Wealth Growth – More cash flow opens doors for investment and financial security

Final Word: Affordability Without Sacrifice

Choosing one of the least expensive states to live in the US is not just about saving money—it’s about maximizing opportunity without compromising on quality of life. These seven states offer affordability, economic diversity, and a sense of stability that can free you to live on your terms. In today’s world, they represent your best assets for living richly—without spending extravagantly.

FAQ – Cheapest States to Live In

What are the least expensive states to live in?

Mississippi, Arkansas, West Virginia, Oklahoma, Kansas, Alabama, and Indiana currently rank as the cheapest states to live in, offering significantly lower costs for housing and essentials.

Why is Mississippi the least expensive state?

With a cost index of 84.4, a median home of ~$151K, and under-$900 rent, Mississippi consistently dominates lists of least expensive states to live in the US .

Are these states good for job opportunities?

Yes—each offers sectors like healthcare, education, energy, logistics, and manufacturing, ensuring that affordable living doesn’t come at the expense of career growth.

How much can I save by living in these states?

Compared to coastal areas, you could save $1,000+ monthly in housing, plus hundreds more on utilities, taxes, and essentials.

Will my standard of living drop in cheaper states?

Not necessarily. These states combine affordability with essential amenities—good schools, healthcare, and recreational options—offering balanced, stress-free living.