3 Cheapest Places to Live in the U.S.

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published 29 June 2017

Looking for the most affordable cities in America? Start your search in Texas. The Lone Star State is home to the two cheapest places to live in the U.S. But before you pack your bags, weigh the pros and cons that come with such super-low living costs.

1. McAllen, Texas

City Population: 140,269

Cost of Living: 23.7% below U.S. average

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Median Household Income: $44,254 (U.S.: $53,889)

Median Home Value: $115,400 (U.S.: $178,600)

Average Monthly Rent: $629 (U.S.: $1,004)

Unemployment Rate: 7.8% (U.S.: 4.9%)

Highlight: Quinta Mazatlan birding center

2. Harlingen, Texas

City Population: 65,774

Cost of Living: 20.6% below U.S. average

Median Household Income: $34,466 (U.S.: $53,889)

Median Home Value: $80,600 (U.S.: $178,600)

Average Monthly Rent: $662 (U.S.: $1,004)

Unemployment Rate: 7.2% (U.S.: 4.9%)

Highlight: A short drive to South Padre Island

3. Kalamazoo, Mich.

City Population: 76,041

Cost of Living: 20.0% below U.S. average

Median Household Income: $33,009 (U.S.: $53,889)

Median Home Value: $96,600 (U.S.: $178,600)

Average Monthly Rent: $671 (U.S.: $1,004)

Unemployment Rate: 4.2% (U.S.: 4.9%)

Highlight: Western Michigan University

See the full list of the cheapest U.S. cities to live in.

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Dan Burrows is Kiplinger's senior investing writer, having joined the august publication full time in 2016.

A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.

Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.

In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more.

Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.

Disclosure: Dan does not trade stocks or other securities. Rather, he dollar-cost averages into cheap funds and index funds and holds them forever in tax-advantaged accounts.