The 25 Cheapest Places to Live: US Cities Edition

25. Lake Charles, Louisiana

• Cost of living: 13.3%elow U.S. average
• Metro population: 81,166
• Median household income: $52,738
• Median home value: $203,000 
• Unemployment rate: 3.9%

Tucked away in steamy Southwest Louisiana, Lake Charles is steeped in Creole and Cajun culture. An economy bolstered by petrochemical refining, casinos, tourism and higher education helps give the metro area an unemployment rate a tick lower than the national average.

At the same time, the cost of living runs 12.3% lower than the national average. As is typical with every city on this list, affordable housing leads the way. Overall housing costs run 34.3% less than what the average American pays. That includes everything from mortgages and rents to insurance and other allied costs. 

Utilities, which cost about a third less than the U.S. average, are another notable way that locals save on their bills. Groceries, healthcare and miscellaneous goods and services all run 3% to 6% lower than the national average. Utilities are a whopping 32% below average and this helps to offset transportation costs that are almost 4% higher than average.  

Tourists flock to metro Lake Charles – also known as the Lake Area – thanks to its abundance of lakes and waterways, as well as its casinos. But the metro area has significant academic life, too, thanks to the presence of McNeese State University and Sowela Technical Community College.

Just be forewarned that the metro area's poverty rate of 21.5% – while 14% higher than the state level of 18.9% — is much higher than the national rate of 11.1%. That sad reality also helps keep costs in check.

24. Abilene, Texas

• Cost of living: 13.3% below U.S. average
• Metro population: 130,033
• Median household income: $60,605
• Median home value: $185,900 
• Unemployment rate: 3.0%

Established in 1881 by cattlemen as a shipping point on the Texas and Pacific Railway, Abilene was named after the famous cattle town of Abilene, Kansas. It occupies the rolling plains of West Texas, sitting just off the Texas caprock region about 150 miles west of Fort Worth, where the geography transitions into a rugged, open landscape traditionally dominated by ranching and oil derricks.

The institutional economy provides high stability, anchored heavily by Dyess Air Force Base (a major B-1B Lancer bomber hub) and a strong higher education sector featuring three private universities—Abilene Christian, Hardin-Simmons, and McMurry. Healthcare systems like Hendrick Health and regional agricultural enterprises round out the primary employment base.

Culturally, Abilene leans into both its cowboy heritage and its official designation as the "Storybook Capital of America," showcasing the world’s largest public collection of sculptural storybook characters downtown. Outdoor recreation centers around Lake Abilene and Abilene State Park, which offer camping, fishing, and hiking among native mesquite and cedar trees.

23. Enid, Oklahoma

• Cost of living:  below U.S. average
• Metro population: 50,653
• Median household income: $62,125
• Median home value: $154,900
• Unemployment rate: 3.5%

Enid is the first of four Sooner State locales to make the list of cheapest small towns in America. (Oklahoma City itself happens to make the list of cheapest places to live for city dwellers.) 

True, with a population of more than 50,000, Enid isn't exactly a small town. But as the center of a micropolitan area with fewer than 62,000 residents in total, the Census Bureau lumps it in with smaller urban areas. 

Known as the "Wheat Capital of Oklahoma," you can probably guess what one pillar of Enid's economy is all about. In addition to agriculture, major sources of employment include Vance Air Force Base, St. Mary's Regional Medical Center and AdvancePierre Foods.

A cost of living that runs 13.6% below what the average American pays only adds to Enid's budget-friendly appeal. Housing expenses are almost a quarter less than the U.S. average, and locals save big bucks on everything from groceries to utilities to transportation. Healthcare costs, however, are about 0.5% higher than the national average.

On the cultural front, the Enid Symphony Orchestra has been delighting locals ever since its founding in 1905. History buffs will want to check out the Cherokee Strip Regional Heritage Center and Enid's historic downtown.

22. Kalamazoo, Michigan

• Cost of living: 13.8% below U.S. average
• Metro population: 73,280
• Median household income: $59,226 
• Median home value: $196,100
• Unemployment rate: 3.5%

Kalamazoo annually ranks among the cheapest places to live in the U.S. Sadly, low costs are very much a necessity for too many of its residents.

In the city of Kalamazoo proper (pop. 73,122), nearly 23.6% of residents live below the poverty line. At the metro level, which includes Portage, Michigan, the figure comes to 7.5%. The U.S. and Michigan state poverty rates are 11.1% and 13.1%, respectively.

Another downside? Michigan is among the least tax-friendly states for middle-class families. The median property tax rate is relatively high, and fuel taxes are high compared to other states.

On the brighter side, Western Michigan University, with its multiple campuses and research facilities, is a major driver of the local economy. Medical equipment maker Stryker (SYK) is headquartered in the city, and Pfizer (PFE), the drug company, maintains its largest manufacturing site in Kalamazoo.

As for recreational activities, the Kalamazoo Nature Center hosts free daily activities. Nearby parks offer a combined 140 miles of trails and three swimming beaches. If you want to get away to the big city, Chicago is less than three hours by car if traffic is merciful.

21. Augusta-Aiken, Georgia/South Carolina

• Cost of living:  13.8% below U.S. average
• Metro population: 636,658
• Median household income: $72,176
• Median home value: $262,100
• Unemployment rate: 3.3%

While most sports enthusiasts associate Augusta with the storied Masters Tournament, there's much more to this city than golf. The metro area, which includes Aiken, South Carolina, is a major center for cybersecurity companies thanks to the presence of the U.S. Army Cyber Command at nearby Fort Gordon.

Augusta is also a regional hub for medicine and biotechnology, supported by Augusta University, the state's only public health sciences graduate university — and the allied Medical District of Augusta.

Happily for locals, the area remains among the country's cheapest cities to live in despite the presence of so many well-paid occupations. Augusta-Aiken's cost of living runs 14.7% below the U.S. average, helped by housing costs that are almost 37% less than what the typical American pays. Folks pay about 20% less than the national average for healthcare, and get about a 7% break off transportation. Utilities are almost 6% higher than average.

And older citizens catch yet another break: Georgia happens to be one of the more tax-friendly states for retirees.

As much as the Masters dominates outsiders' imagination about this city, which sits a two-and-a-half-hour drive from downtown Atlanta, it has much more going on than golf. Phinizy Swamp Nature Park, minutes from downtown Augusta, offers 14 miles of hiking trails. Aiken is home to the University of South Carolina Aiken and the Aiken Thoroughbred Racing Hall of Fame and Museum.

20. Knoxville, Tennessee

• Cost of living: 14.0% below U.S. average
• Metro population: 198,708
• Median household income: $57,298
• Median home value: $294,700
• Unemployment rate: 2.8%

Thrifty types should volunteer to check out Knoxville and its greater metro area, the only city in Tennessee to make the list for inexpensive living. The city is notable for its across-the-board affordability for everything from food to transportation, according to the Cost of Living Index.

The biggest savings, as per usual, come from the city's especially low housing costs, which run more than a quarter below the U.S. average. Indeed, the mean price of a Knoxville home is $126,871 lower than the national average. Apartment rents are about 27% less expensive.

Tennessee comes in as the second most tax-friendly state to live out your retirement. It also has no estate and inheritance taxes. The Volunteer State also earned a spot on Kiplinger's list of States With the Lowest Property Taxes. 

Consider Knoxville, the original state capital before Nashville, a good mix of city and country living. It is home to the University of Tennessee and the Women's Basketball Hall of Fame, but Knoxville is also the gateway to the Great Smoky Mountains. The Tennessee River runs through downtown.

Major employers include the U.S. Department of Energy, Alcoa (AA) and Covenant Health.

The city was a strategic objective in the Civil War, so history buffs can visit a number of battlefields nearby, too.

19. San Marcos, Texas

• Cost of living: 14.0% below U.S. average
• Metro population: 74,319
• Median household income: $48,091
• Median home value: $364,600
• Unemployment rate: 3.4%

San Marcos, Texas, is a vibrant city located in the heart of Central Texas, situated on the I-35 corridor between Austin and San Antonio. The city is known for its beautiful natural attractions, particularly the San Marcos River, its outlet shopping centers, and for being the home of Texas State University. 

The city's landscape features rolling hills and the spring-fed San Marcos River, which is a major defining feature of the area. The river is fed by the Edwards Aquifer through hundreds of springs at the bottom of Spring Lake and maintains a constant temperature of 72 degrees Fahrenheit year-round. This makes it a popular destination for water-based activities. The city is also home to various natural areas and parks with hiking and biking trails, offering a mix of landscapes from grasslands to canyon bluffs.

Living in San Marcos is 15.5% cheaper than in other American cities. Housing offers the biggest savings, costing only 76.7% of the national average. Groceries and health care are only a little over 6% cheaper than the national average, while utilities and health care are between 12% to 17% less than average. 

One of the most significant economic drivers is Texas State University, which is one of the largest universities in the state. The university brings a large student and faculty population, providing jobs, and fostering innovation and research, particularly in fields like advanced materials, water research and biotechnology. The city's location on I-35 makes it an ideal hub for logistics and distribution, with major fulfillment centers like Amazon establishing a presence there.

Beyond the river, the city boasts over 2,100 acres of natural areas and parks, including Purgatory Creek Natural Area and Five Mile Dam Park, which offer extensive trails for hiking, running, and biking.

The city hosts annual events and festivals, such as the Mermaid Festival and the Sacred Springs Powwow. Cultural attractions include the LBJ Museum of San Marcos, which focuses on Lyndon B. Johnson's formative years at Texas State University, and the Calaboose African American History Museum.

Texas has no income tax, and it exempts groceries, prescription and over-the-counter medications from sales taxes. 

18. Lafayette, Louisiana

• Cost of living: 14.2% below U.S. average
• Metro population: 122,273
• Median household income: $59,445
• Median home value: $263,600
• Unemployment rate: 3.4%

Lafayette is Louisiana's fourth-most populous city and situated along the Vermilion River. Originally established as Vermilionville in the 1820s, it was renamed for Revolutionary War General Marquis de Lafayette in 1884. It was primarily an agricultural community until the discovery of oil in the area in the 1940s. Since the discovery of oil, the city and parish had the highest number of workers in the oil and natural gas industry in Louisiana. 

Known as the "Hub-City" of Acadiana, because of its proximity to major roadways heading north, south, east and west. Lafayette has become a major center for health care and social services, aerospace, and banking. Notable corporations with headquarters or a large presence in the Lafayette area have included Amazon, CGI, JPMorgan Chase, Ochsner Health System and Petroleum Helicopters International.

Housing, utilities and healthcare are well below average, and 36%, 15%, and 19% cheaper than the national average, respectively. However, you'll pay almost 5% more than other Americans to sip some wine if you want to raise a glass to celebrate a cost of living that is 13% less than the national average.

At the Acadian Cultural Center, you can learn about the history, customs, language, and contemporary culture of the Acadians who became Louisiana's Cajuns. The Hilliard Art Museum can be found on the campus of the University of Louisiana at Lafayette. The museum's collection consists of 18th through 21st century European, Asian and American art works. The sport of trampoline developed in Lafayette. The gymnastics program at the University of Louisiana at Lafayette popularized the sport and has produced more world champions than any other location.

Homeowners get a break as Louisiana has one of the lowest property tax rates in the nation. Retirees that settle in Lafayette won't pay any state income tax on Social Security retirement benefits or federal retirement benefits (including military and non-military).

17. Broken Arrow, Oklahoma

• Cost of living: 14.4% below U.S. average
• Metro population: 122,131 
• Median household income: $91,077  
• Median home value: $278,700 
• Unemployment rate: 3.5%

Platted in 1902 along the Missouri-Kansas-Texas Railroad, Broken Arrow owes its unique name to a Creek Nation settlement formed by Native Americans who had been relocated from Alabama. Geographically, it is positioned in the rolling hills of northeastern Oklahoma, sitting directly on the edge of the "Green Country" region as the largest southeastern suburb of the Tulsa metropolitan area.

The local economy has shifted from its agricultural roots to a thriving base of light manufacturing, aerospace parts, and logistics, with major employers including flight simulator pioneer FlightSafety International, standard manufacturing plants, the regional operations of FlightSafety, and a highly rated public school system that serves as a core community anchor.

Entertainment centers around the Rose District, a fully revitalized downtown arts and entertainment zone packed with boutiques, local eateries, and the Broken Arrow Performing Arts Center. Residents also enjoy an abundance of green space, including the nearby Ray Harral Nature Park and easy access to the water recreation at the Arkansas River and regional lakes.

16. Corpus Christi. Texas

• Cost of living: 14.4% below U.S. average
• Metro population: 317,314 
• Median household income: $66,967  
• Median home value: $234,000
• Unemployment rate: 4.1%

Wondering why a Texan city has a Latin name? The story goes that in 1519, Spanish explorer Alonso Álvarez de Pineda discovered a semi-tropical bay in the Gulf of Mexico on the Christian feast day of Corpus Christi — and promptly named his discovery in its honor.

Five hundred years later, and the city is the eighth most-populated in Texas, with a bustling international airport and the third largest port in the U.S., predominantly exporting oil and gas.

As you’d expect in Texas, the oil industry is still important for the local economy — refineries Citgo and Valero are two big names in the area. But other major employers include Corpus Christi Naval Air Station and Texas A&M University, along with businesses in the hospitality and tourism sector. With more than 250 days of sunshine a year, and miles of sandy beaches to explore, Corpus Christi is a key stop on the Texan tourist trail, attracting both domestic and international visitors. Major attractions include the Texas State Aquarium and the USS Lexington.

Happily, the beautiful climate and natural amenities also make Corpus Christi an idyllic place to live — especially if you’re the outdoors type. Nature lovers can head to Mustang Island State Park for kayaking, birdwatching, camping and fishing, for instance, while water babies can surf, sail and swim at any of the nine local gulf and bay beaches — or even just bob peacefully in the Laguna Madre, one of the world’s only hypersaline lagoons, where the high salt concentration makes floating easy.

All that coastline means an abundance of seafood to eat in the city’s plentiful restaurants — although Tex-Mex is equally popular. And with year-round events taking place on or near the waterfront, including Barefoot Mardi Gras, the Jazz Festival, Pride and Juneteenth celebrations, you’d be hard pushed to find a more vibrant Texan city.

15. Conway, Arkansas

• Cost of living: 15.2% below U.S. average
• Metro population: 70,704 
• Median household income: $65,896 
• Median home value: $298,200
• Unemployment rate: 3.2%

The city of Conway — an affordable enclave in the Little Rock-North Little Rock-Conway metro area — is home to a number of high-tech companies, including information technology firm Insight Enterprises (NSIT).

Being home to a large proportion of younger residents helps keep costs in check. Known as "The City of Colleges," Conway hosts three post-secondary educational institutions: the University of Central Arkansas, Hendrix College and Central Baptist College.

Close proximity to the Arkansas River and Lake Conway makes the city ideal for fishing and water sports, and there's ample space for hunting. Yet you can drive to the state capital of Little Rock in a half-hour or so.

Not that Conway is without its own more aspirational cultural attractions. The city is home to the Arkansas Shakespeare Theatre, the state's only professional Shakespeare company.

Conway's housing costs are affordable and run 25% below the national average. Utilities, transportation and healthcare costs are also comparatively modest.

As Kiplinger's Arkansas State Tax Guide shows, the state doesn’t create a tax burden for retirees. And there are no estate or inheritance taxes when you die. 

14. Mobile, Alabama

• Cost of living: 15.2% below U.S. average
• Population: 201,355
• Median household income: $55,307
• Median home value: $200,000
• Unemployment rate: 3.3%

Founded by French colonists in 1702 as the original capital of French Louisiana, Mobile is one of the oldest cities on the Gulf Coast. It is situated at the mouth of the Mobile River as it empties into Mobile Bay, serving as a deepwater port city protected by barrier islands, surrounded by coastal marshes and a rich subtropical ecosystem.

As a major maritime logistics hub, Mobile's economy is led by the Port of Alabama, international aerospace manufacturing (via Airbus's massive commercial aircraft assembly facility), shipbuilding giant Austal USA, and chemical processing facilities, alongside a deep healthcare sector driven by the University of South Alabama health system. 

Steeped in history, Mobile is the official birthplace of organized Mardi Gras in America, celebrating with weeks of historic parades. The city boasts beautiful historic districts shaded by Spanish moss-draped live oaks, the USS Alabama Battleship Memorial Park on the bay, and quick access to the white-sand beaches of Dauphin Island.

13. Edinburg, Texas

• Cost of living: 15.5% below U.S. average
• Metro population: 108,746
• Median household income: $59,851
• Median home value: $223,900
• Unemployment rate: 5.7%

Only twenty minutes north of the U.S.-Mexico border, Edinburg, Texas, serves as the gateway to the Rio Grande Valley. Edinburg is the third-largest city in the larger Rio Grande Valley region and the county seat of Hidalgo County. The local economy is made up of a diverse mix of industries, from agriculture to a growing health and education sector.

Known as the Garden of Texas, Edinburg is home to many produce companies. Serving as a key location for products going across the border in either direction, cold storage facilities in Edinburg play an important role moving locally grown produce north and south of the border safely. Companies such as Don Hugo, Robinson Fresh and Little Bear bring us avocados, tomatoes, peppers, salad greens, melons and onions. Despite its proximity to growing regions, groceries are only 6.3% cheaper then the rest of the country. 

The University of Texas Rio Grande Valley (UTRGV) was created when UT System merged two existing campuses and brought the first medical school to the Rio Grande Valley region. Maybe that's why residents of Edinburg pay almost 20% under the national average for healthcare.

Summers in Edinburg are packed with fun, free entertainment. Edinburg hosts a Summer Concert Series, a Back-to-School Big Squeeze Finale and Fridafest, a festival that honors the legacy of Frida Kahlo. The theme of the event changes every year and features a Frida Look-Alike contest for all ages. Picnic staple fried chicken is 25% cheaper in Edinburg than elsewhere in the country.

If you need more entertainment options, the Edinburg Scenic Wetlands comprise one of nine sites of the World Birding Center. The 40-acre nature oasis features wetlands and one of the largest native butterfly gardens in the area, with more than 300 different bird sightings. The Rio Grande Valley Vipers are a NBA G League, with a regular season running from October through April.

Residents of Texas do not pay state income taxes. There is no inheritance tax or estate tax. However, the property taxes are on the higher side and average $3,520.

12. Decatur/Hartselle, Alabama

• Cost of living: 15.8% below U.S. average
• Metro population: 159,651
• Median household income: $69,526
• Median home value: $219,800
• Unemployment rate: 2.1%

Decatur and Hartselle are two northern Alabama cities with an abundance of outdoor activities, cultural diversions, and low costs of living. Decatur's economy benefits from being one of the busiest ports on the Tennessee River and from NASA's Marshall Space Flight Center in nearby Huntsville. Tourism is another driver of the local economy, thanks to the Wheeler National Wildlife Refuge, the Carnegie Visual Arts Center, and festivals such as the Alabama Jubilee Hot Air Balloon Classic.

Nearby Hartselle, about 10 miles south, shares the charms of its neighbor to the north. Residents can cool off in the summer at the city's sprawling aquatic center, which includes a water slide and diving platform. And Southern history buffs will want to stroll through the Hartselle Downtown Commercial Historic District, which is listed in the National Register of Historic Places.

Residents can enjoy all this and more without breaking the bank. Decatur's housing-related costs, including mortgages and rents, are 31.8% cheaper than the national average. Prices on a wide range of goods and services, from pizza to haircuts to dry cleaning, are less expensive, too.

Alabama has one of the nation's lowest property tax rates and no state death taxes. Social Security and pensions are exempt from taxation; only the first $6,000 of distributions from retirement plans (like IRAs and 401(k)s) are tax-exempt for retirees age 65 and older.

11. Joplin, Missouri

• Cost of living: 16.3% below U.S. average
• Metro population: 52,593
• Median household income: $52,097
• Median home value: $168,300
• Unemployment rate: 3.3%

It used to be that Joplin, at least to outsiders, was probably best known as a place where Depression-era bank robbers Bonnie and Clyde hid out for a time. Today, sadly, Joplin is perhaps better known for tornadoes, such as the deadly storm that destroyed about 30% of the city in 2011.

The city (and greater metro area) has since recovered from the costliest single tornado in modern U.S. history, helped by its status as a regional medical center. Its two major hospitals serve a four-state area that includes Kansas, Oklahoma, and Arkansas.

Meanwhile, other key employers include General Mills, Schaeffler Group and Leggett & Platt.

Housing-related costs, which run about 39.9% below the national average, help secure Joplin's place on the cheapest places to live for U.S. city dwellers. Expenses for groceries and healthcare are only 5.5% below average. Utilities are an outlier and run slightly over 0.4% above the national average.

From a tax perspective, Missouri is pretty average; it has graduated state individual income tax rates ranging from 2% to 4.8%. Although the state repealed its income tax on Social Security retirement benefits, pensions are partially taxable and IRA and 401(k) distributions are fully taxable. 

10. Dothan. Alabama

• Cost of living: 16.9% below U.S. average
• Metro population: 72,735
• Median household income: $55,846
• Median home value: $222,800
• Unemployment rate: 2.5%

Dothan was originally part of the colony of British West Florida. Its history as a modern city starts in 1893 when it secured a stop on the first railroad to be built in the region. Local pine forests were harvested for turpentine and wood, and the cleared land was used to cultivate cotton that was devastated by the boll weevil in the early 1900s. This is when farmers turned to peanuts.

Approximately one-fourth of the U.S. peanut crop is produced nearby and much of it is processed in the city, earning its nickname as the “Peanut Capital of Alabama” and hosts the National Peanut Festival each fall. The first festival honoring the peanut was on Thursday, November 10, 1938. It was a three day event including a guest speaker named Dr. George Washington Carver a botany and agriculture teacher at the Tuskegee Institute who gained international fame with his development of over 300 products from the peanut.

Agriculture remains the largest industry in Dothan with cotton production making a resurgence and produces significant tomato crops.

Nearby Fort Novosel, houses one of the largest helicopter collections in the world at the US Army Aviation Museum. If you are a culture vulture, you have many options to choose from. The Dothan Opera House showcases Broadway-style shows, ballets, symphonies and local theater productions. Music South, was originally the Southern Alabama Symphony Association, and was renamed to reflect the wide variety of musical performances on offer.

9. Jonesboro, Arkansas

• Cost of living: 17.2% below U.S. average
• Metro population: 82,386
• Median household income: $51,672
• Median home value: $233,900
• Unemployment rate: 3.3%

The Jonesboro Metro area consists of two counties, Craighead and Poinsett, and is anchored by the city of Jonesboro. It’s located in northeast Arkansas and is a short 50-mile drive to Memphis, Tennessee. Jonesboro has a small-town vibe with facets of a college town as it is home to Arkansas State University.

Arkansas State University is home to the ASU Museum, which strives to serve the community at large. On Saturdays, the museum’s Tinkering Studio teaches children how circuits work, how to use math to create art, and how to create their own animations.

Birding is a popular pastime in Arkansas. Inside the 692-acre Craighead Forest Park is the Craighead Forest Trails Loop. This trail is about 7.4 miles long and is a popular destination for ornithologists and twitchers. Or enjoy year-round fishing for bream, catfish, crappie and bass at Lake Frierson State Park, a short 10 miles north of downtown Jonesboro.

There are plenty of local corporate employers in Jonesboro, including Frito-Lay, Unilever, and General Mills — so you can get a good job and enjoy an affordable lifestyle all in one place.

Owning a home is more attainable here than in most places. Arkansas's property taxes are among the lowest in the nation. Housing costs are 39.2% cheaper than the national average and utilities are 2.6% less. The average commute is 18.5 minutes and transportation costs only 11.7% of the national average.

8. Des Moines, Iowa

• Cost of living: 17.5% below U.S. average
• Metro population: 213,188
• Median household income: $67,297
• Median home value: $213,300
• Unemployment rate: 2.5%

Des Moines kind of has it all: a robust and multifaceted economy; a vibrant cultural scene; major universities; and — most importantly for our purposes here — a low cost of living.

On the economic front, Des Moines is probably best known as a major center of the insurance industry and other financial services. Healthcare, manufacturing, and logistics are also key planks supporting the local labor market.

Des Moines' strong economy helps keep both the unemployment and poverty rates well below state and national averages.

The city also benefits from a comparatively large student population, driven by Drake University, Grand View University, Mercy College of Health Sciences and numerous other institutions of higher learning.

At the other end of the age spectrum, Des Moines is known for being especially attractive to retirees. The city boasts plenty of healthcare facilities specializing in aging-related services. Health care costs are 12.1% less than the national average.

Retirees won't lack for things to do, either. There are numerous museums and arts venues, including an outdoor sculpture park, a zoo, and botanical gardens. There's even a casino and racetrack in nearby Altoona that hosts annual camel, ostrich and zebra races (sorry, no wagering on these exhibition races allowed).

Best of all, Des Moines delivers all this with a cost of living that's 16% lower than the U.S. average. Housing expenses (61.8%) are roughly a third less than what the typical American spends to keep a roof over his or her head, while utility costs are significantly lower, too. Transportation is the only expense where Des Moinesers pay more, with costs running 6.1% above average.

In a first, Iowa recently made retirement income tax-exempt for residents 55 and older and eliminated its inheritance tax for tax years 2025 and later. That means tax-free Social Security, pensions and 401(k), and IRA distributions.

7. Amarillo, Texas

• Cost of living: 18.0% below U.S. average
• Metro population: 197,979
• Median household income: $67,187
• Median home value: $213,900
• Unemployment rate: 3.2%

Amarilloans are known for their love of high school football, hot sauce and thick steaks. They also enjoy savings on a wide range of goods and services. Need to get your eyes checked? An appointment with an optometrist is 40.6% less expensive in the city known as "The Yellow Rose of Texas." Dry cleaning bills are 41.4% cheaper than the national average.

But the biggest way folks in this part of the Texas Panhandle save money is by what they shell out for housing.

Metro-area residents spend 42.2% less on housing-related costs than the national average. The average house price of $257,400 is $283,108 below the national average. Apartment rents ($1,271) are 21.8% cheaper than what the typical American pays every month.

It's also encouraging that Amarillo's economy has remained invigorated. For example, the metro area's unemployment rate of 3.2% stands below the national rate of 4.3%. Major employers include Tyson Foods, CNS Pantex and BSA Health System.

In 2023, voters approved Proposition 4, which cut property taxes for Texas homeowners through tax compression and by increasing the state’s homestead exemption. In 2025, the voters have another chance to modify the property tax system and raise the homestead exemption from $100,000 to $140,000. For retirees, the homestead exemption for those age 65 and older or with disabilities could go up by $50,000 from the current $110,000 exemption to $160,000.

6. McAllen, Texas

• Cost of living: 18.0% below U.S. average
• Metro population: 148,784
• Median household income: $60,907
• Median home value: $218,500
• Unemployment rate: 5.7%

McAllen might be one of the cheapest places to live in the U.S., but it comes at a price. The poverty rate in the McAllen-Edinburg-Mission metro area is 20.4%. That's about 1.5 times the Texas rate of 13.7% and almost twice the U.S. rate of 10.6%.

On the plus side, McAllen is famous for bird watching because of its location on a major migration route. The Quinta Mazatlan, a luxury birdhouse with more than 15 acres of birding habitat, is not to be missed. The city also features the International Museum of Art & Science, which has a specific focus on Latin American art.

And McAllen is indeed one of the cheapest places to live in the U.S. for city dwellers. Housing costs are 43.4% lower than the national average, healthcare expenses are 26.6% cheaper and grocery items are around 7.2% less than what the typical American pays. One of the few things residents pay a little extra for is utilities (+21.6%), which isn't surprising given that temperatures routinely soar into the high 90s during the summer months.

Texas is a mixed bag when it comes to taxes. It used to have the seventh-highest median property tax rate in the country. However, voters approved a new Texas property tax relief measure that expanded the homestead exemption and will vote again in 2025 on whether to increase the exemption by $60,000. At that point, the basic exemption would climb to $140,000. 

5. Kokomo, Indiana

• Cost of living: 18.2% below U.S. average
• Metro population: 59,122
• Median household income: $55,360
• Median home value: $137,400
• Unemployment rate: 4.7%

Kokomo was founded in 1844 as the county seat for what is now Howard County. It was originally home to the Miami Indians, who lived along the waterways and the valley of the Wabash River in north central Indiana.

Although the median household income is about two-thirds of the amount in the U.S., the housing costs are 43.1% below the national average. Indiana currently has a flat tax rate of 3.05% that is applied to state adjusted gross income after modifications. Overall utility costs are about 7.8% below the national average, while transportation costs are 4.4% more.

It would be fair to say that Indiana is a military-friendly state. For instance, starting with the 2024 tax year, all military income is exempt from state income tax. They also have a comprehensive program called INvets.  It helps veterans transition to civilian life, with an emphasis on finding the right community and job placement. 

Getting around the city of Kokomo is easy and can be free. The city offers residents and visitors free public transportation through City Line Trolley, providing coverage to most of the educational, retail, and medical areas and services with over 250 stops. The KokoGo Bike Share facility offers a free bike share program during the spring, summer and fall months. 

4. Anniston-Calhoun County, Alabama

• Cost of living: 16.2% below U.S. average
• Metro population: 65,445
• Median household income: $52,880
• Median home value: $147,500
• Unemployment rate: 2.8%

About an hour's drive east from Birmingham sits the Anniston metro area. The city's proximity to the Mountain Longleaf National Wildlife Refuge makes it a good jumping-off point for hikers, mountain bikers, and other outdoorsy types. The city also has its quirks. It's home to the world's largest office chair — a 33-foot-tall seat that was once recognized by Guinness World Records.

Major employers include the Anniston Army Depot and Alabama Regional Medical Center. Maybe that's why health care costs are 19.4% lower than the national average.

Anniston's low cost of living puts it among the 15 cheapest places to live, but it comes alongside a median income that's one-third lower than the national median. 

Overall housing costs in the Anniston area are 40.4% lower than what the average American pays. Utilities, however, are relatively pricey, running 4.1% above the national average.

3. Oklahoma City, Oklahoma

• Cost of living: 19.1% below U.S. average
• Metro population: 713,014
• Median household income: $70,040
• Median home value: $259,300
• Unemployment rate: 3.6%

The largest city in Oklahoma offers remarkably affordable prices for its size. The biggest reason: Housing costs run 43.1% below the national average, according to the Cost of Living Index, which takes into account both home prices and apartment rents.

Drilling down into those categories, home prices in Oklahoma City average $316,715 vs. a national average of $540,508. Renters also do quite well on a relative basis. Average apartment rent comes to $830 a month compared with a U.S. average of $1,624.

Transportation and miscellaneous goods and services also cost appreciably less in Oklahoma City. However, health care costs are the same as the national average, and utilities aren't much cheaper (-1%) than what the typical American pays.

Yet, as a metro area with over half a million people, Oklahoma City offers a lot of big-city attractions, from a philharmonic orchestra to the National Softball Hall of Fame and Museum. At the professional sports level, the Oklahoma City Thunder represents the metro area in the NBA.

Meanwhile, a well-rounded metro-area economy helps folks find jobs in a wide range of industries. Major employers include the U.S.A.F.'s Tinker Air Force Base, the University of Oklahoma and Amazon.com (AMZN).

Be forewarned, however, that Oklahoma presents a mixed tax picture for retirees. While Social Security benefits, military pensions aren't taxed, pensions 401(k) and IRA distributions are partially taxable. An upside is that there is no estate or inheritance tax in Oklahoma. 

Homeowners do well in the state with median property tax bills well below the national average. However, everyone pays more in general as groceries and prescription drugs are subject to states sales tax. 

2. Decatur, Illinois

• Cost of living: 19.0% below U.S. average
• Metro population: 66,528
• Median household income: $49,244
• Median home value: $115,600 
• Unemployment rate: 5.6%

Decatur currently ranks as the cheapest place to live in the U.S. among cities with metro areas with at least 50,000 inhabitants.

Decatur, Illinois, and its surrounding metro area are probably best known as an agricultural and manufacturing center. Archer Daniels Midland moved its headquarters to Chicago in 2013 but maintains operations in this central Illinois city. Caterpillar, the world's largest maker of construction and mining equipment, has facilities in the area, as well. Decatur likewise lays claim to a massive corn-processing plant owned by U.K.-based food ingredients company Tate & Lyle.

Archer Daniels Midland's departure following a price-fixing scandal was a blow to the local economy, and Decatur struggles with elevated unemployment to this day. A cost of living that's nearly a fifth lower than the national average is partly a symptom of ADM's exit, but at least it's also something of a salve.

Housing costs are almost over 50% lower than the national average in metro Decatur, and healthcare is much cheaper, too. However, the cost of utilities is almost 3.9% above the national average, and transportation costs are only 6.2% lower. Those savings help make up for the fact that Illinois is among the least tax-friendly states for middle-class families. Illinois has one of the highest sales tax rates in the U.S., but it's also one of the states that don't tax retirement income.

Decatur's status as one of the cheapest places to live in the U.S. is no doubt appreciated by its significant student population, which includes Millikin University's approximately 2,340 students and the roughly 2,075 people studying at Richland Community College.

1. Harlingen, Texas

• Cost of living: 20.0% below U.S. average
• Metro population: 72,239
• Median household income: $41,756
• Median home value: $153,200
• Unemployment rate: 6.2%

Harlingen sits at the southernmost tip of Texas, with the Rio Grande to the south and the Gulf of Mexico to the east. The Brownsville-Harlingen metro area is a hardscrabble place where 20.1% of residents live below the poverty line. That's about one-and-a-half times the poverty rate for Texas as a whole. Comparatively low median household income and high unemployment are other grim aspects of the metro area's economy.

However, just about everything, from groceries to gasoline, costs less in Harlingen. Locals save about 5.6% on a good cut of steak compared to the national average. The average home price in Harlingen ($365,567) is a striking $174,941 less than the U.S. average. The average apartment rents for $835 per month — or 48.6% lower than the national average of $1,642.

Texas makes the list of Kiplinger's Best States for Middle-Class Families Who Hate Paying Taxes. Texas also recently reduced property taxes by increasing the homestead exemption from $40,000 to $100,000 ($110,000 for homeowners 65 and older and those with disabilities). 

As with not-too-distant neighbor McAllen (+21.6%), utility bills run a bit high, or 26.5% above the national average.

Although agriculture remains central to Harlingen's local economy, the healthcare and telecommunications industries are rapidly gaining importance.

Lastly, it would be negligent to forget one of the area's biggest selling points: Harlingen is only about an hour's drive to the beaches of South Padre Island.