Top 10 Cheapest States to live in America in 2021 !

The cost of living in the US varies from country to country. It is the sum of money necessary to maintain a certain living standard in a state. Homes, food, taxes, and healthcare are part of the living costs. A strong relationship endures between the cost of living of a state and personal income per capita. The living cost varies between states. In Arkansas, a dollar for rent is worth 1.58 dollars according to the 24.7 Wall St., while in one of the humid states Hawaii, a dollar for a rental is worth 0.61 dollars. 

The life cost index is based on the average life cost index in the United States by 100. Most states with the lowest living costs are in the south, while the richest states often have the highest living costs. Generally speaking, the dollar goes further in states with a smaller proportion of city residents. Mississippi’s living index is at least 84.8, and the total cost of housing in this cheapest state is lower than 66.7.

Here are the ten states of the US with the lowest cost index:

  • Mississippi 
  • Oklahoma 
  • Arkansas
  • Kansas
  • Missouri
  • Georgia
  • Alabama
  • New Mexico 
  • Tennessee 
  • Indiana

10. Indiana

Cost of Living Index:  90.4
Grocery Cost Index: 92.3
Housing Cost Index: 76.5
Transportation Cost Index: 99.4

Indiana is number ten with the overall living costs of 90.4 for the most affordable living cost in the United States, but that doesn’t mean that it’s costly! While smaller cities and towns are typically cheaper than large towns, Indianapolis, the capital city of Indiana, is one of the state’s most affordable towns. Indiana’s domestic index is low at 76.5 and doesn’t have any rainwater harvesting regulations. A two-bedroom apartment has an average home value of approximately $750 per month.


9. Tennessee

Cost of Living Index:  90.2
Grocery Cost Index: 94.5 
Housing Cost Index: 82.6
Transportation Cost Index: 87.7

Tennessee’s highest cost for living was $50,152, and up to now, its household costs have been $810. Nevertheless, one of the most populated states Tennessee’s housing index is only 82.6. Tennessee’s taxes are very low, with no government income taxes and a very low food cost. In cities like Morristown, the average living costs are 13% below the national average. The transport costs are approximately 12.3% lower than the national average.


8. New Mexico

Cost of Living Index:  89.6 
Grocery Cost Index: 99.0 
Housing Cost Index: 80.4
Transportation Cost Index: 93.0

New Mexico has over 2 million people, and about 318 million people live in the United States. Most people do not know that this state is a great place to live. You will be glad to know that the whole country has lovely communities with many friendly and charming towns. New Mexico costs the average median household $193,200, while a double bedroom home costs $762 per month.

New Mexico

7. Alabama

Cost of Living Index:  89.4 
Grocery Cost Index: 95.1
Housing Cost Index: 70.2 
Transportation Cost Index: 92.3

Alabama is the seventh-largest cost of living. Alabama played a crucial role in the civil rights campaign, and nearly five million people live there. The overall living cost in Alabama is 89.4, and the housing cost is 70.2. Alabama has relatively high tax and service rates (Cost Index 103.3), but housing makes it up. A median Alabama apartment rental is $698, while the average home value for the 2-bedroom apartment is $129,300. In Alabama, a living wage of $50,585 is lower than in some other states.


6. Georgia

Cost of Living Index:  89.4 
Grocery Cost Index: 99.0
Housing Cost Index: 71.3 
Transportation Cost Index: 91.3

The sixth cheapest state in America is Georgia to live in. Low housing costs are the most significant to Georgia’s attractive total cost of living. It has cities with the worst traffic and provides cheaper accommodations, on average, with a housing index of 71.3 versus 100 national benchmarks. Georgia’s median household income is $56,183. Medial home value is $180,679. The average rent rate of both one and two-bedroom apartments is less than in the rest of the country, except for Atlanta. Food and gas prices are lower than the national median.

Atlanta, Georgia

5. Missouri

Cost of Living Index:  88.9 
Grocery Cost Index: 97.6 
Housing Cost Index: 71.6 
Transportation Cost Index: 93.9

Missouri provides affordable and economic opportunities with a focus on healthcare and professional services. Missouri’s cost of living total index is 88.9, and its housing score is low at 71.6. It is the fifth less costly state in America and one of the dangerous places in the world. The lower prices for the four-bedroom house in Joplin, Missouri, are just over $200000. In Missouri, the food prices are much lower, with just $1.32 to be baked in Joplin for a dozen eggs in the country. Springfield cities are 14.1% lower than the national mean for their lives, while Joplin is 17.7% lower than the national average.


4. Kansas

Cost of Living Index:  87.9 
Grocery Cost Index: 92.8 
Housing Cost Index: 71.8 
Transportation Cost Index: 94.8

Kansas is the fourth-lowest country in America. Kansas’s consent age is 16 years old and the overall living cost is 87.9, making it the 4th lowest living price in the country. The cost of housing in Kansas, with a score of 71.8 and about 12.1% down from the rest of the country, is significantly lower than the national average, and the household income is around $ 41,644. A Kansas two-bedroom apartment costs about $821/month and averages about $137,700 per house. Kansas groceries are also cheaper, with just $1.39 a half-gallon milk and a pound of soil beef of 3.79 dollars.


3. Arkansas

Cost of Living Index:  87.8
Grocery Cost Index: 90.7
Housing Cost Index: 75.2 
Transportation Cost Index: 86.1

Arkansas’s average population costs are around $708 per month for rent or mortgages, half the price many pay, and a medium cost of $128,800 at home. The lowest housing expenses in America are in Arkansas. But the third-cheapest cost of living for America comes with the second-lowest wage. Arkansas’ living wage is $49,970. Because of its diverse geography, it is known as the natural state. Arkansas is the home of Wal-headquarters Mart’s when it comes to employment. The main productivity industries are Tyson Foods and Baptist Health.


2. Oklahoma

Cost of Living Index:  86.8 
Grocery Cost Index: 94.1
Housing Cost Index: 70.1 
Transportation Cost Index: 91.3

The second-lowest living cost of America is Oklahoma. Oklahoma is much to like when it comes to low living costs. Kiplinger named Oklahoma City, the state’s capital, one of the cheapest cities in America. Housing is the lowest in the country, with amber of $124,800 for home prices, a 54-size index, and Arkansas for the two-bedroom flat average of $879. Oklahoma also has some of America’s lowest gas prices. Food costs at 95.8 and 94.1 indexes are lower than average. The overall costs for living in Oklahoma City are 15.4% lower than the national average.


1. Mississippi

Cost of Living Index:  84.8 
Grocery Cost Index: 93.1
Housing Cost Index: 66.7 
Transportation Cost Index: 89.9

With an overall cost of living of 84.8, Mississippi is the lowest country to live in, and it is the US’ most affordable and has the world’s deepest ocean. The Mississippi’s average cost of living is roughly 15% less than the national average cost of living. Mississippi’s living wage is just $48,537, the cheapest in the country. The costs of housing in Mississippi are around 795 dollars per month, and the country’s lowest costs are around 2869 dollars per year.

StateCost IndexGroceryHousingTransportation
New Mexico87.5100.977.791.6
West Virginia91.192.979.693.5
North Carolina94.996.683.193.4
South Carolina95.9101.985.188
North Dakota98.8108.190.3104.3
South Dakota99.8107109.889.8
New Hampshire109.7100.4110.3111.4
Rhode Island119.4106.2129.4124
New Jersey125.1109.5163.1111.1
New York139.1114.8204.4116.6


So, this is all about a quick overview of the United States of America’s ten cheapest states to live in. The usual suspects in the top weren’t too surprising like Mississippi and Arkansas isn’t surprised us in the list. We hope to look at these states in the coming years and see how the inflammation, housing, and transportation rates fluctuate in their position.

Sophia Wadke
I am Shopia, a movie enthusiastic and I read lot of books, mostly of science fiction, thrillers and biography. Content writing is just my profession but my passion too.

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