States With the Lowest Cost of Living

7. Iowa

At 10.9% below the average cost of living, Iowa is another one of the most affordable states. And the capital, Des Moines, is among the cheapest capital cities in the U.S. at 17.3% below average. Wherever you go in the state, you’ll likely find affordable housing. Let’s take a look:

^{*Median monthly rent is based on a two-bedroom apartment.}

8. Arkansas

Arkansas is 10.4% below the national average, right behind Iowa on the list. Arkansas, the home of Walmart, has amazing natural hot springs, caves and forests. You can live on the plains or in the mountains, and you can find real diamonds in Arkansas at Crater of Diamonds State Park. Plus, the Northwest Arkansas (NWA) region is a growing hotbed for new jobs, tech startups and cutting-edge culture.

^{*Median monthly rent is based on a two-bedroom apartment.}

9. Tennessee

Tennessee’s cost of living is 9.8% below the national average. Nashville is the most expensive city (shocker), but living there still costs 1.1% less than average. Want to find someplace cheaper? Head over to Knoxville, where the cost of living is 13.6% lower than average. Let’s look at a few other figures and how they compare to the whole country:

^{*Median monthly rent is based on a two-bedroom apartment.}

Once you arrive, you can enjoy the Great Smoky Mountains, country music and legendary Memphis barbecue. And I’d be remiss if I didn’t tell you that Tennessee is also home to us here at Ramsey Solutions—come see us!

10. North Dakota

North Dakota is 9.1% below the national average—and has one of the lowest unemployment rates on the list. If you love the outdoors, North Dakota has a lot to offer: the beautiful badlands of Theodore Roosevelt National Park, the weird and wild scrap metal sculptures of the 32-mile Enchanted Highway, animal watching at the most wildlife refuges of any state, and fertile farmlands as far as the eye can see. The Peace Garden State is a major player in the oil industry and has seen a boom in population in the last decade because of it.

^{*Median monthly rent is based on a two-bedroom apartment.}

11. Indiana

Indiana’s cost of living is 9.1% less than the U.S. average. And little Richmond, Indiana, has a cost of living 18.5% below average. But what about housing? And what’s up with the job market? Take a look:

^{*Median monthly rent is based on a two-bedroom apartment.}

Beyond the numbers, Indiana has some great selling points. It’s surprisingly beautiful, and it has everything from sand dunes up north to forests and limestone caves in the south. This state also produces lots of popcorn—so bring your movie collection along.

12. Texas

Texas is 8.9% below the national average. Texas has also been gaining both people and industry for years thanks to low taxes and light regulation (getting more businesses with business-friendly policies—who knew?).

As the saying goes, everything is bigger in Texas—and Texans go big when it comes to fun. The state has 11 pro sports teams (including the Dallas Cowboys, Texas Rangers and San Antonio Spurs), plus seven Six Flags amusement and water parks and lots of historic sites, like the Alamo (there’s no basement, by the way—I’ve checked). Austin, the state capital, keeps things weird with its own crazy mishmash of Texas swagger and urban street culture.

Let’s see how Texas stacks up next to the U.S. for housing, income and unemployment:

^{*Median monthly rent is based on a two-bedroom apartment.}

13. Nebraska

Nebraska’s cost of living is 8.8% below the national average—not too shabby. Those vast fields of corn and cows (Nebraska is a big corn and beef producer) could lead you to a great life. Let’s see how the numbers add up:

^{*Median monthly rent is based on a two-bedroom apartment.}

By the way, there’s more to Nebraska than just cornfields (though there are a lot of those—it’s the Cornhusker State, folks). Think the College World Series, Chimney Rock (hello Oregon Trail fans), small towns and communities, and plenty of wide-open spaces to breathe in. If you’re looking for that laid-back Midwest life, Nebraska might just be calling your name.

14. Georgia

Georgia’s cost of living is 8.2% below the national average. Outside the Atlanta metro, the savings go up: College towns like Statesboro sit around 12.6% below average. The state’s low costs pair nicely with one of the strongest job markets on the list (3.3% unemployment).

^{*Median monthly rent is based on a two-bedroom apartment.}

Georgia gives you mountains up north, a marshy coast down south, and fresh peaches pretty much everywhere. Just remember: Atlanta proper costs a lot more than a small town two hours out.

15. New Mexico

New Mexico is 8.1% below the national average. The Land of Enchantment mixes desert-mountain scenery with some of the lowest costs west of the Mississippi. Rio Rancho, just outside Albuquerque (if you don’t make a wrong turn), runs about 10.3% below average.

^{*Median monthly rent is based on a two-bedroom apartment.}

New Mexico is big on green chiles, hot-air balloons, and wide-open high desert. Between Santa Fe’s art scene, White Sands, and some of the darkest night skies in the country, there’s a lot to love. Just know the listing prices skew higher even though day-to-day costs run low.

16. South Dakota

South Dakota rounds out the list at 8.1% below the national average—and it has the lowest unemployment rate of any state here at 2%. Even the biggest city, Sioux Falls, runs about 12% below average. And to sweeten the deal, there’s no state income tax.

^{*Median monthly rent is based on a two-bedroom apartment.}

South Dakota offers Mount Rushmore, the Badlands and buffalo roaming the prairie—wide-open space with small-town prices. Just know the winters don’t mess around, so pack a good coat with that moving budget.

Why Can a Cheap State Still Feel Unaffordable?

A state with a low cost of living average can be misleading because prices in the big metro areas are often way higher than in rural counties. Take Texas, for example. The state overall is 8.9% below the national average, but Plano is one of the priciest metros in the state and actually costs more than the national average. Same state, wildly different price tag.

So don’t just look at the state. Look at the specific city (and even the specific zip code) you’re actually moving to. A “cheap” state won’t help your budget if you land in its most expensive downtown area.

Should You Move to a State With a Lower Cost of Living?

The truth is, moving only based on the cost of living may not be the best idea. Whether you should move to a new state really depends on your financial situation, career goals and lifestyle, especially since every state has its pros and cons. Distance also matters—a cross-country move costs way more than a neighboring-state move.

That said, it’s important to live somewhere you can actually afford—so find out if the cheapest states to live in will fit you and your family. To get started, try our free Cost of Living Calculator and compare your current hometown to cities in the most affordable states.

How to Move Without Going Broke

To move without taking on debt, you need to know your total relocation costs and save a dedicated sinking fund before you hire the first moving truck. A cheaper cost of living should create margin to speed up your Baby Steps—not become another reason to swipe a credit card.

Here’s the game plan:

1. Budget the move in EveryDollar. Build a line item for movers, deposits, travel and the boring-but-real stuff (utility hookups, new-state fees).
2. Save a moving sinking fund. Set the target, then save up and pay cash. If the move is six months out, divide the total by six and knock it out a month at a time.
3. Leave the emergency fund alone. A moving truck isn’t an emergency. Keep a fully funded emergency fund of 3–6 months of expenses (Baby Step 3) in a money market or high-yield savings account. Don’t steal from it just because you don’t want to plan ahead.

Once the money’s handled, the move itself is just logistics. For more moving help, grab our moving checklist.

Maybe you’ve already made up your mind—you’re sick of sky-high prices and ready to head to greener pastures. Time to pack your bags and find a great real estate agent through our RamseyTrusted^® program. We recommend top-performing agents who live and work near you—or where you want to move. Wherever you’re looking to move, they’ll take care of you.