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.

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

A long-time financial journalist, Dan is a veteran of MarketWatch, CBS MoneyWatch, SmartMoney, InvestorPlace, DailyFinance and other tier 1 national publications. He has written for The Wall Street Journal, Bloomberg and Consumer Reports and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among many other outlets. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange.

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 markets and macroeconomics.

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

Disclosure: Dan does not trade individual stocks or securities. He is eternally long the U.S equity market, primarily through tax-advantaged accounts.