The 7 States with the Lowest Cost of Living

The United States of America is home to exceptional variation in the cost of living. The country houses some of the most expensive cities on Earth, but it also has some regions with approachable and affordable costs. We’ll look at the states in America with the lowest cost of living, including Alabama, Kansas, and Mississippi. But what’s the #1 cheapest state in the country? You’ll have to read on to find out!

To organize this list, we used the 2023 Third Quarter cost of living series presented by the Missouri state government. This list provides a comprehensive overview of each state’s rank in overall cost of living. It also breaks down the categories that make up the rank, highlighting the strengths and weaknesses of each state when it comes to cost.

7. Arkansas

The state with the seventh-lowest cost of living in America is Arkansas. This beautiful southern state has an overall cost of living index score of 88.5. While Arkansas isn’t the most affordable state in America, it has some of the lowest health costs in the country. Additionally, Arkansas has reasonable utilities and grocery prices comparatively.

6. Missouri

Missouri takes the sixth-place spot for the lowest cost of living in America. Missouri has an overall index score of 88.3, though it boasts some of the lowest transportation costs of any state in the country. This centrally located Midwest state also has affordable health costs compared to other states.

5. Alabama

Alabama is another southern state with an exceptional cost of living. The state of Alabama takes the fifth-place spot overall for the lowest cost of living in America, with a score of 88.2. Alabama has low health costs, low housing costs, and fairly low costs for all other categories. It neighbors some of the other cheapest states, including Mississippi and Georgia.

4. Kansas

Known for its abundant wheatfields, Kansas is another American state with one of the lowest costs of living in the United States. Kansas has an overall COL index score of 87.4. In addition, Kansas has the lowest housing costs of any state on the list. However, transportation is fairly expensive, which increases Kansas’s average score.

3. Oklahoma

The southern state of Oklahoma takes the third-place spot for the cheapest cost of living in America. Oklahoma, also called the Panhandle State, has an overall COL index number of 86.8. However, the state notably has extremely low costs for groceries and housing.

2. Mississippi

With the penultimate lowest cost of living of the states in the US, we have Mississippi. Mississippi is a southern state known for its history, the Mississippi River, and delicious food. The state of Mississippi has an overall index of 86.7, though its housing score makes its overall score so low.

1. West Virginia

Finally, West Virginia takes the prize as the state with the lowest cost of living. West Virginia’s overall cost of living index is 85.2, with astonishing low housing costs. The state of West Virginia is the only state centrally located within the Appalachian Mountains. It features great landmarks and more than 30 state parks.

Summary Table of the 10 States with the Lowest Cost of Living

While we only highlighted the Top 7, here’s a quick overview of the 10 states with the lowest cost of living. You’ll find the total index number, as well as the breakdowns for grocery, housing, utilities, transportation, health, and miscellaneous costs.

The photo featured at the top of this post is © anthony heflin/Shutterstock.com