Cheapest States to Live In: Housing, Rent, and Cost Data
West Virginia, Mississippi, and other Southern and rural-Midwestern states consistently have the lowest housing costs in the United States. Median home values below $180,000 and median rents under $1,000 make them meaningfully more affordable than coastal metropolitan areas, though lower wages can partially offset the savings.
Cheapest States by Median Home Value
| # | State | Median Home Value |
|---|---|---|
| 1 | Puerto Rico | $124,600 |
| 2 | West Virginia | $155,600 |
| 3 | Mississippi | $161,400 |
| 4 | Arkansas | $175,300 |
| 5 | Oklahoma | $185,900 |
| 6 | Kentucky | $192,300 |
| 7 | Alabama | $195,100 |
| 8 | Iowa | $195,900 |
| 9 | Ohio | $199,200 |
| 10 | Indiana | $201,600 |
| 11 | Kansas | $203,400 |
| 12 | Louisiana | $208,700 |
| 13 | Missouri | $215,600 |
| 14 | Michigan | $217,600 |
| 15 | Nebraska | $223,800 |
Cheapest States by Median Rent
| # | State | Median Rent |
|---|---|---|
| 1 | Puerto Rico | $562/mo |
| 2 | West Virginia | $850/mo |
| 3 | South Dakota | $912/mo |
| 4 | Arkansas | $914/mo |
| 5 | Mississippi | $923/mo |
| 6 | Kentucky | $933/mo |
| 7 | North Dakota | $934/mo |
| 8 | Iowa | $949/mo |
| 9 | Alabama | $963/mo |
| 10 | Wyoming | $968/mo |
| 11 | Oklahoma | $980/mo |
| 12 | Ohio | $988/mo |
| 13 | Missouri | $996/mo |
| 14 | Indiana | $1,020/mo |
| 15 | New Mexico | $1,021/mo |
Cheap Does Not Always Mean Affordable
Housing is only one piece of cost of living. Low-housing-cost states often have lower median household incomes, reducing the affordability advantage. Mississippi has the cheapest housing in the country but also the lowest median income, so residents don't always come out ahead of people in higher-income states with more expensive housing.
A more useful measure is the ratio of median home value to median household income. A home-value-to-income ratio of 3x is generally considered affordable; ratios above 5x indicate significant affordability stress. Many rural states sit comfortably under 3x, while California, Hawaii, and Massachusetts exceed 6x.
What Else Drives Cost of Living
- State and local taxes. Nine states have no state income tax (Texas, Florida, Tennessee, Nevada, Washington, Wyoming, South Dakota, Alaska, and New Hampshire). Property and sales tax rates vary widely.
- Utilities and transportation. Electricity, heating, and gasoline costs differ substantially by region, which matters in rural states where driving distances are longer.
- Healthcare. Insurance premiums and medical prices vary state by state.
- Groceries and services. Generally cheaper in rural and Southern states, more expensive in Hawaii, Alaska, and urban Northeast.
Related
Compare with the richest states by household income. See full rankings at cheapest states by home value and highest rent by state.
Frequently Asked Questions
Puerto Rico has the lowest median home value of any US state at $124,600, making it among the cheapest for homeowners.
Puerto Rico has the lowest median gross rent at $562 per month.
Affordability depends on income relative to cost, not just absolute prices. A state can have cheap housing but also low wages, leaving residents with the same or less disposable income than in a more expensive state. Cost of living indexes published by the Bureau of Economic Analysis adjust for regional price differences.
Lower population density, weaker building restrictions, lower property taxes in some states, and milder land and labor costs have kept housing prices in much of the South and Midwest well below coastal averages.
Housing cost data from ACS 5-Year estimates. Figures are not adjusted for cost of living; cross-state comparisons should consider regional income differences.
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