What Are the Cheapest States to Live In 2026? Cost of Living Ranked

The 10 most affordable states in 2026

Housing costs eat more of the average American's paycheck than anything else. With the typical home value averaging $383,360 across the 50 states and the average cost of living index at 97, affordability has become the dominant factor for anyone considering a move. We ranked all 50 states using typical home values, BEA regional price parities, electricity and fuel prices, and center-based infant care prices.

Mississippi leads with an affordability score of 91.9/100. The typical home value is $197,606 — 48% below the 50-state average. Among the top 10, the average cost of living index is 88, meaning your dollar stretches roughly 12% further than average.

But cheap doesn't automatically mean good. Some affordable states rank poorly for safety or health. The smart question isn't "where is cheapest?" but "where can I get the most for what I spend?"

#1: Mississippi

Mississippi leads the nation in affordability with a housing score of 91.9/100. The typical home value is $197,606 — compared to the 50-state average of $383,360 — and the cost of living index is 87 (100 = national average). That means a dollar goes roughly 13% further here than in the average state. Median household income of $59,127 creates a price-to-income ratio of just 3.3x.

The income tax rate is 4.4% with a total tax burden of 9.06%. Prices for goods index at 96.2 (US = 100), and electricity runs 14.0 cents per kWh. Safety is a plus — the violent crime rate of 226.9 per 100K is below the national average. The composite score of 41.9/100 (rank #46) shows that affordability is just one piece — Mississippi also scores 91.9 in affordability.

#2: Arkansas

Arkansas scores 89.7/100 in affordability. A typical home value of $227,264 paired with a cost of living index of 86.9 makes it one of the most affordable places in the country. The median income of $62,106 gives a price-to-income ratio of 3.7x — meaning the average household could buy a home for about 3.7 years of gross income.

The income tax rate is 3.9% with a total tax burden of 8.61%. Prices for goods index at 93.6 (US = 100), and electricity runs 12.8 cents per kWh. One trade-off: the violent crime rate of 531.8 per 100K is well above the national average. The composite score of 40.1/100 (rank #48) shows that affordability is just one piece — Arkansas also scores 89.7 in affordability.

#3: Louisiana

Louisiana scores 88.7/100 in affordability. A typical home value of $217,039 paired with a cost of living index of 88.2 makes it one of the most affordable places in the country. The median income of $60,986 gives a price-to-income ratio of 3.6x — meaning the average household could buy a home for about 3.6 years of gross income.

The income tax rate is 3% with a total tax burden of 8.94%. Prices for goods index at 93.7 (US = 100), and electricity runs 12.6 cents per kWh. One trade-off: the violent crime rate of 515.1 per 100K is well above the national average. The composite score of 30.0/100 (rank #50) shows that affordability is just one piece — Louisiana also scores 88.7 in affordability.

#4: Oklahoma

Oklahoma comes in at #4 with a housing score of 88.6/100. Typical homes are valued at $223,261 and the cost of living index sits at 87.8. With a median income of $66,148, the price-to-income ratio is 3.4x.

The income tax rate is 4.75% with a total tax burden of 7.01%. Prices for goods index at 93.8 (US = 100), and electricity runs 13.1 cents per kWh. One trade-off: the violent crime rate of 407.7 per 100K is above the national average. The composite score of 43.0/100 (rank #43) shows that affordability is just one piece — Oklahoma also scores 88.6 in affordability.

#5: Iowa

Iowa comes in at #5 with a housing score of 86.3/100. Typical homes are valued at $239,547 and the cost of living index sits at 87.8. With a median income of $75,501, the price-to-income ratio is 3.2x.

The income tax rate is 3.8% with a total tax burden of 9.23%. Prices for goods index at 93.7 (US = 100), and electricity runs 13.7 cents per kWh. Safety is a plus — the violent crime rate of 233.9 per 100K is below the national average. The composite score of 69.2/100 (rank #14) shows that affordability is just one piece — Iowa also scores 86.3 in affordability.

#6: West Virginia

West Virginia comes in at #6 with a housing score of 86.2/100. Typical homes are valued at $179,496 and the cost of living index sits at 89.5. With a median income of $60,798, the price-to-income ratio is 3.0x.

The income tax rate is 4.82% with a total tax burden of 8.85%. Prices for goods index at 96.5 (US = 100), and electricity runs 15.4 cents per kWh. Safety is a plus — the violent crime rate of 241.7 per 100K is below the national average. The composite score of 42.8/100 (rank #44) shows that affordability is just one piece — West Virginia also scores 86.2 in affordability.

#7: Alabama

Alabama comes in at #7 with a housing score of 85.5/100. Typical homes are valued at $241,613 and the cost of living index sits at 88.8. With a median income of $66,659, the price-to-income ratio is 3.6x.

The income tax rate is 4.15% with a total tax burden of 7.99%. Prices for goods index at 96.4 (US = 100), and electricity runs 16.1 cents per kWh. Safety is a plus — the violent crime rate of 348.3 per 100K is above the national average. The composite score of 48.5/100 (rank #37) shows that affordability is just one piece — Alabama also scores 85.5 in affordability.

#8: South Dakota

At #8, South Dakota scores 84.7/100 in affordability. Typical homes run $321,574, the cost of living index is 88.6, and a price-to-income ratio of 4.2x keeps homeownership accessible.

The state charges no income tax, though the total tax burden is 6.46%. Prices for goods index at 95.5 (US = 100), and electricity runs 13.4 cents per kWh. Safety is a plus — the violent crime rate of 307.5 per 100K is near the national average. The composite score of 79.3/100 (rank #3) shows that affordability is just one piece — South Dakota also scores 84.7 in affordability.

#9: North Dakota

At #9, North Dakota scores 83.5/100 in affordability. Typical homes run $292,293, the cost of living index is 89, and a price-to-income ratio of 3.8x keeps homeownership accessible.

The income tax rate is 2.5% with a total tax burden of 6.61%. Prices for goods index at 95.7 (US = 100), and electricity runs 11.8 cents per kWh. Safety is a plus — the violent crime rate of 256.7 per 100K (the FBI's prior-year estimate; its latest year there is based on limited data) is below the national average. The composite score of 75.5/100 (rank #5) shows that affordability is just one piece — North Dakota also scores 83.5 in affordability.

#10: Kansas

At #10, Kansas scores 83.1/100 in affordability. Typical homes run $249,603, the cost of living index is 90.1, and a price-to-income ratio of 3.3x keeps homeownership accessible.

The income tax rate is 5.58% with a total tax burden of 9.33%. Prices for goods index at 94 (US = 100), and electricity runs 14.6 cents per kWh. One trade-off: the violent crime rate of 457.2 per 100K is well above the national average. The composite score of 55.1/100 (rank #27) shows that affordability is just one piece — Kansas also scores 83.1 in affordability.

Affordable and actually good

The best-case scenario is a state that's cheap and scores well overall. Among our top 10 affordable states, 4 also have composite scores above 55 (the midpoint). Iowa and South Dakota and North Dakota and Kansas stand out as affordable states that don't sacrifice quality of life.

The price-to-income ratio is a better measure than home price alone. The national average is 4.6x — meaning the typical home costs 4.6 times the median annual income. Among the 10 most affordable states, the average ratio drops to 3.5x. That's the difference between a 15-year and a 30-year mortgage being comfortable.

The most expensive states

The other side of the coin: Hawaii, California, Massachusetts, New York, Washington are the five most expensive states to live in. Hawaii has a typical home value of $833,340, a cost of living index of 110, and a price-to-income ratio of 8.3x.

Expensive states aren't worse by default. Many of the priciest states also have higher median incomes, better healthcare, and stronger job markets. Hawaii's median income is $100,745 — 25% above the national average. The question is whether the income premium offsets the higher costs, and that depends on your specific situation.

The real cost of cheap

Low cost of living often correlates with lower incomes, fewer job opportunities, and less access to amenities. The average median income among the 10 cheapest states is $68,159 — 16% below the national average.

That said, what matters is purchasing power: income relative to cost. If you earn 10% less but spend 20% less, you come out ahead. States like Arkansas (COL index: 86.9, income: $62,106) offer genuine value. For remote workers earning coastal salaries while living in low-cost states, the math gets even better.