Cheapest States to Live in 2026

Find the cheapest states to live in 2026. Ranked by overall cost of living including housing, groceries, utilities, and healthcare.

Looking for the most affordable place to live in the U.S.? We ranked every state by overall cost of living, factoring in housing, groceries, utilities, transportation, and healthcare costs. See also Cost of Living by State, Rent by State, and Average Home Prices by State.

The Rent Index: 2015–2026

U.S. typical market rent (Zillow ZORI, all homes + multifamily, smoothed)

Source: Zillow Observed Rent Index (ZORI), All Homes Plus Multifamilykeepingupwithinflation.com

Then (2019)

$1,340/mo

Now (2026)

$1,895/mo

Change

+41%

The Electricity Index: 2015–2026

Average price per kilowatt-hour, residential (U.S. City Average)

Source: Bureau of Labor Statistics (FRED series APU000072610)keepingupwithinflation.com

Then (2019)

13.0¢/kWh

Now (2026)

19.2¢/kWh

Change

+48%

Top 10 Cheapest States

Mississippi, Oklahoma, Kansas, Alabama, West Virginia, Arkansas, Missouri, Georgia, Indiana, and Iowa consistently rank among the cheapest states to live. Housing costs in these states run 30-50% below the national median.

What Makes a State Affordable

Low housing costs are the primary factor, followed by below-average grocery and utility prices. States without income tax (like Texas and Tennessee) can also offer savings, though property taxes may offset the benefit.

Trade-Offs to Consider

Lower costs often come with lower average wages, fewer job opportunities in certain industries, and different levels of public services and infrastructure. The best value depends on your career, lifestyle, and priorities.

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