List of Cheapest US Cities to Live

Is finding an affordable place to live with pleasant weather on your list of New Year’s resolutions? The good news is we have compiled a list of the cheapest places to live in the U.S. This list of U.S. cities, all of which have a population of over 150,000 people, includes the average house price.

25 Cheapest Places to Live in the US

1- Kalamazoo

• Population: 266,000
• Median Household Income: $56,439
• Median Home Value: $171,788

Kalamazoo, a city in the state of Michigan, is one of the most affordable cities in the U.S. to buy a house. Western Michigan University is one of the major employers in Kalamazoo, along with pharmaceutical company giant Pfizer and Stryker, a medical equipment company.

Kalamazoo’s Nature Center fulfills residents’ recreational and entertainment needs by hosting daily activities. Residents of Kalamazoo also enjoy the city’s beaches and miles of trails. Chicago, IL is less than three hours away by car.

2- Harlingen

• Population: 422,023
• Median Household Income: $40,999
• Median Home Value: $88,998

Another one of the cheapest places to live in the U.S. is Harlingen, TX. Harlingen is just thirty miles away from the Gulf of Mexico coast. Residents in this city enjoy a lower cost of living; on average, they only pay $151,112 for a single-family home, which is less than the U.S. average.

Renters can expect to pay an average of $700 in rent, which is 42% less than the national average of $1,210. Residents can enjoy nearby beaches along the Gulf of Mexico, which is just an hour’s drive away.

3- McAllen

• Population: 868,700
• Median Household Income: $41,798
• Median Home Value: $93,402

McAllen, also known as “The City of Palms,” is also one of the most affordable cities in the U.S. McAllen is located in Texas near the Mexico border and 70 miles away from the Gulf of Mexico, McAllen is an active migration route for birds. It attracts bird lovers who enjoy bird watching, McAllen is also home to Quinta Mazatlán, a natural habitat for birds that spans 15 acres.

There’s also an International Museum of Art and Science, which is filled with interesting exhibits about Latin American art and culture. McAllen also has a low cost of living: home prices are 42% cheaper than the national average.  Healthcare costs are 29% lower and the cost of food is 15% cheaper than the national average.

4- Jackson

• Population: 594,805
• Median Home Value: $153,795
• Median Household Income: $52,420

Jackson is the state capital of Mississippi. It’s located on the bank of the Pearl River in the Jackson Prairie region. Jackson is the host city of the International Ballet Competition every four years. Dancers from around the world gather in Jackson to compete for medals, scholarships, and spots with ballet companies.

Jackson’s housing costs are approximately 40% lower than the national average. Similarly, transportation expenses and overall living costs are about 21% lower than the national average, which makes it one of the most affordable U.S. cities to live in.

5- Amarillo

• Population: 269,450
• Median Home Value: $156,305
• Median Household Income: $53,505

Amarillo is another Texas city that is on our list of the cheapest places to live. Amarillo, which is Spanish for “yellow,” has a low cost of living. For example, residents will spend less money on services like dry cleaning, and residents save around 39% on housing expenses compared to the national average.

6- Anniston

• Population: 113,600
• Median Home Value: $121,609
• Median Household Income: $48,150

 

Another one of the most affordable cities in the U.S. is Anniston, AL. It is a city in Calhoun County, just an hour away from Birmingham. The Mountain Longleaf National Wildlife Refuge provides multiple opportunities for outdoor activities like hiking and mountain biking. Anniston is also home to the world’s largest office chair, Anniston is also filled with beautiful architectural structures such as Victorian Homes and old churches.

Anniston has lower home values than other parts of the county. In short, the people of Anniston pay over 40% lower housing costs than the average American.

7- Joplin

• Population: 179,560
• Median Home Value: $127,810
• Median Household Income: $48,900

Joplin, Missouri is often recognized as the hiding place for infamous bank robbers Bonnie and Clyde. Today, unfortunately, Joplin is notorious for its tornados. The reason why Joplin is among the ten cheapest cities in the U.S.A. is its low housing costs; Joplin residents pay 35% less for their homes than the national average. Transportation costs, healthcare, and groceries are also cheaper.

8- Kokomo

• Population: 82,500
• Median Home Value: $109,803
• Median Household Income: $53,435

Kokomo, Indiana is another city on our list of the most affordable U.S. cities. It is the site of the last remaining manufacturing hub for global automotive industries like Stellantis, Aptiv, General Motors, and Haynes International.

Kokomo residents save around 28% when buying property – the average home price in Kokomo is $284,700. Residents also don’t pay as much for fuel and food compared to other U.S. cities.

9- Knoxville

• Population: 869,515
• Median Home Value: $186,890
• Median Household Income: $56,613

Knoxville, Tennessee is an excellent place for frugal people who love nature, Knoxville is one of the top 10 most affordable cities due to its lower cost of living across the board, transportation costs, and food prices.

Knoxville is the third-largest city in the state of Tennessee and provides a good combination of country and urban living, Knoxville is also home to the University of Tennessee, the Women’s Basketball Hall of Fame, and serves as the doorway to the Great Smoky Mountains.

10- Hattiesburg

• Population: 168,470
• Median Home Value: $145,300
• Median Household Income: $48,360

Hattiesburg is a small and affordable town located in Mississippi. Hattiesburg is home to several prestigious educational institutions like the University of Southern Mississippi and William Carey University. There are also beaches and casinos just 90 miles away.

Whether you choose to rent or buy a house, Hattiesburg’s housing costs are 36% less than the national average. Residents also pay less for utilities, healthcare, and transportation.

11- Augusta

• Population: 610,450
• Median Home Value: $161,790
• Median Household Income: $55,145

Augusta, Georgia is on the eastern border of the U.S. across the Savannah River from the state of South Carolina. The Augusta is widely known as the host of the annual Master’s Golf Tournament, but it has much more to offer. Augusta is now the headquarters city for U.S. Army Cyber Command, located at nearby Fort Gordon.

Residents of Augusta generally earn a fairly good wage. With the cost of living hovering around 16% below the national average, you get more for your money.

12- Texarkana

• Population: 149,300
• Median Home Value: $117,210
• Median Household Income: $51,550

Housing costs are undoubtedly cheaper in the city of Texarkana, which is why it made our list of the cheapest places to live in U.S. Texarkana is unique in that it is located in two different states – Texas and Arkansas.

The average apartment rent in Texarkana is around $940, whereas the national average for apartment rent is $1,215. Groceries, utility bills, healthcare expenses, and transportation costs are also cheaper.

13- Jackson

• Population: 178,650
• Median Home Value: $121,410
• Median Household Income: $48,708

 

Jackson, Tennessee, is also one of the most affordable U.S. cities. Jackson is a regional trade hub for West Tennessee where company factories and headquarters for Stanley Black & Decker, Delta Faucet Company, Kellogg, and Masco’s are located. From a recreational and entertainment standpoint, Jackson has attractions like the West Tennessee Healthcare Sportsplex and the International Rock-A-Billy Hall of Fame Museum. The cost of living in Jackson is 15% lower than the national average.

14- Florence

• Population: 147,100
• Median Home Value: $145,505
• Median Household Income: $45,820

Florence, Alabama is a mile away from the Tennessee River and 120 minutes from Birmingham. Florence is also known as “The Shoal.” Shoal refers to a shallow area near the river, sea, or lake. One of the most iconic places in the city is Muscle Shoals Sound Studio where the legendary Rolling Stones recorded their hit songs, “Wild Horses” and “Brown Sugar.”

Housing in Florence is lower than the national average. In fact, on average, tenants only pay $626 per month in apartment rent. The average American pays almost twice that amount.

15- Waterloo/Cedar

• Population: 168,520
• Median Home Value: $63,131
• Median Household Income: $63,132

Waterloo/Cedar Falls is a city in the state of Iowa and one of the cheapest cities to live in. Cedar Falls is an agricultural and manufacturing center. Most residents work for John Deere, Tyson Foods, or Target.

Cedar Falls offers great outdoor activities. There are multiple waterfront parks and a 52-mile long biking track. The Cedar Valley Arboretum & Botanic Gardens is the perfect spot to spend a lazy afternoon. From an educational perspective, the city is home to the University of Northern Iowa as well as the Waterloo Center for the Arts. Housing costs here are 21% lower than the national average.

16- Conway

• Population: 67,650
• Median Home Value: $202,510
• Median Household Income: $46,800

Conway is the county seat of the state of Arkansas. Although Conway is considered a suburb of Little Rock, the residents of Conway enjoy a healthy job market with employment opportunities at high-tech companies like Acxiom and higher education institutions such as the University of Central Arkansas.

Conway is on the Arkansas River,  and the area’s lake, Lake Conway, is the perfect place for fishing, hunting, and water sports. Plus the city of Little Rock is just 30 minutes away.

Conway has low housing costs and considerably low utility costs, making it one of the most affordable cities in the U.S.

17- Memphis

• Population: 1,369,900
• Median Home Value: $167,800
• Median Household Income: $54,300

Memphis is a city in Tennessee. It’s located on the Mississippi River and is the second-most populated city in Tennessee. The average home price in Memphis is $309,222, while the average American pays $395,284. Rent is also quite affordable here; it’s just $200, which is much less than the national average.

18- Decatur

• Population: 104,000
• Median Home Value: $105,510
• Median Household Income: $50,840

 

Decatur is the largest city in the state of Illinois and is located along the Sangamon River and Lake Decatur. Agricultural and manufacturing industries dominate Decatur’s economy thanks to the agricultural corporation Archer Daniel Midland and the giant corn-processing plant Tate & Lyle. Millikin University and Richland Community College are major educational institutions here and accommodate many students.

Overall, the cost of living in Decatur is 14% lower than the national average, led by 30% lower housing costs than the national average. Residents pay less for groceries and healthcare.

19- Lake Charles

• Population: 209,000
• Median Home Value: $164,700
• Median Household Income: $51,550

 

Lake Charles is a city in Louisiana; it’s located on the Calcasieu River. This beautiful city appeals to people with various interests. It’s popular for its fishing, boating, classical music, and seafood. You can also visit several casinos, golf courses or enjoy the music from the symphony orchestra.

Several oil refineries and petrochemical plants play a major part in the city’s economy; each employs thousands of employees. Lake Charles also has a robust casino market, which also contributes to the local economy.

The best thing is that it all comes at a reasonable cost, as the cost of living here is 14% lower than the national average. This is why Lake Charles is on our list of the cheapest places to live in.

20- Mobile

• Population: 428,040
• Median Home Value: $139,000
• Median Household Income: $49,560

Mobile, Alabama sits on the Mobile River. Moreover, Mobile is considered a cultural center of the Gulf Coast with its art museums, symphony orchestra, professional opera, and professional ballet company. Mobile is also known as the origin of Carnival or Mardi Gras celebration in America.

Housing costs in Mobile are about 35% lower than the national average, which plays a significant role in setting the cost of living at 14% cheaper.

21- Winston Salem

• Population: 676,000
• Median Home Value: $163,800
• Median Household Income: $52,320

Winston Salem is one of the largest metropolitan areas in North Carolina and is home to six colleges, 75 recreational parks, and 33 wineries. Winston-Salem has gained the name of “The City of the Arts” due to its concentration of theater and visual arts venues.

In Winston-Salem, the average apartment rent is $766. Residents also pay 31% less for houses than the national average. The city offers an overall lower cost of living than most other U.S. cities.

22- Lynchburg

• Population: 2666,180
• Metro Home Value: $174,000
• Median Household Income: $57,730

Lynchburg, Virginia located in the foothills of the Blue Ridge Mountains on the edge of the James River. The diverse city is home to Liberty University, which is also the city’s largest employer.

Lynchburg, also known as the “City of Seven Hills,” is on this list of cheapest places to live in the U.S. due to its low housing costs, which are almost 25% less than the national average. As a comparison, Lynchburg, Virginia is around 70.9% cheaper than Alexandria, Virginia, though a salary of $66,000 in Lynchburg, Virginia should increase to $123,479 in Alexandria, Virginia.

23- Decatur/Hartselle

• Population: 152,600
• Median Home Value: $142,910
• Median Household Income: $53,450

 

Decatur and Hartselle are both cities in Northern Alabama that provide plentiful options for outdoor activities. The cities are close to the Tennessee River and are popular sites for festivals like the Alabama Jubilee Hot Air Balloon Classic.

Housing costs here are around 34% less than the national average, led by an average rent that is about 43% lower than the national average.

24- Savannah

• Population: 393,350
• Median Home Value: $201,000
• Median Household Income: $60,370

Savannah is the oldest city in the state of Georgia. It’s also a tourist destination with cobblestone streets, parks, notable historic buildings, and gigantic oak trees.

Savannah residents are lucky to call this place home as the housing costs are 36% lower than the national average. In addition, the cost of living here is 13% cheaper than the national average.

25- Fort Wayne

• Population: 413,265
• Median Home Value: $143,800
• Median Household Income: $57,290

Fort Wayne is the last city on our list of cheapest places to live in the U.S. It is the second-most populated city in Indiana. The land of three rivers – St. Marys, St. Joseph, and the Maumee – is western Indiana’s regional hub of culture and economics. The Three Rivers Festival is an excellent source of fun every summer. The city’s major employers are General Motors, Lincoln Financial Group, Lutheran Health Network, and Parkview Health. Fort Wayne’s cost of living is 34% lower than the national average.

Final Words

We have compiled a list of the most affordable cities in the U.S., but you should choose a city that best suits your budget, lifestyle, and ambitions.