25 Cheapest Small Towns to Live In
We ranked the 25 cheapest small towns across the country where you can maximize your budget without sacrificing charm.
The cheapest small towns to live in can be hidden gems for those looking to relocate. Small-town living has plenty of perks: light traffic, a strong sense of community and a slower pace of life. That can come as a relief, especially if you are currently living in an expensive big city.
How we chose the 25 cheapest small towns to live in
To get a sense of what inexpensive small-town living really costs, we compiled a list of the 25 cheapest small towns to live in America, with small towns defined as places with populations of approximately 10,000 to 50,000 people.
We compiled our rankings based on the Council for Community and Economic Research's (C2ER) calculations of living expenses in 265 urban areas.
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C2ER's Cost of Living Index measures prices for housing, groceries, utilities, transportation, healthcare, and miscellaneous goods and services, such as movie tickets or salon services.
The data, which includes thousands of prices across hundreds of cities, allowed us to pinpoint the small towns with the lowest living costs. (For larger urban areas, read our list of the 25 Cheapest Places to Live: U.S. Cities Edition).
You should weigh the pros and cons before you pack up and relocate to one of these towns. While a low cost of living is attractive, it can be offset by issues such as scarce jobs, small paychecks or a lack of things to do in the area.
Plan an extended visit to ensure the small town fits your lifestyle. In a tight real estate market, consider all your options, even buying a foreclosed home.
Here are the 25 cheapest small towns to live in the U.S.
25. Kankakee, Illinois
- Cost of living: 11.5% below U.S. average
- Population: 23,996
- Median household income: $47,514
- Median home value: $104,900
- Unemployment rate: 5.7%
Kankakee is the county seat of Kankakee County and serves as an anchor city in the rural plains outside Chicago. The Kankakee River, which runs through the city, is approximately 133 miles long and serves as a major attraction and defining landmark. The river water is refined at the Kankakee Water Company, and electricity is generated at the Kankakee River Dam, providing vital resources to the community.
Major employers encompass a diverse set of industries. Midwest Transit Equipment is the largest bus dealer in the United States. It was founded in 1976 and has only 100 employees and an annual revenue of $300 million. Serological Proteins is a medium-sized healthcare company with 651 employees and a revenue of $350 million.
The cost of living in Kankakee offers some relief from the difficult employment environment. Housing and transportation are, on average, 30.5% and 8% below average, respectively.
However, Illinois has earned a place on our list of the 10 Least Tax-Friendly States for Middle-Class Families. There is some good news for retirees, as this is one of 13 states that don’t tax retirement income. Keep in mind that they do tax investment income.
It's also home to two important Frank Lloyd Wright buildings: the B. Harley Bradley House and Warren R. Hickox House. These two homes were the first of their kind and mark the beginning of Wright's "Prairie Style" period. For the next decade, his architectural commissions reportedly drew on the basic plans of these two houses.
24. Mason City, Iowa
- Cost of living: 11.5% below U.S. average
- Population: 27,050
- Median household income: $64,804
- Median home value: $142,000
- Unemployment rate: 3.3%
Settled in 1853 along the Winnebago River, Mason City became a booming industrial hub in the early 1900s due to massive deposits of limestone and clay, which fueled a dominant brick, tile, and cement manufacturing sector. Geographically, it serves as the commercial and cultural epicenter of North Iowa, situated halfway between Minneapolis and Des Moines.
The contemporary job market is highly diversified across healthcare, agribusiness, and manufacturing. MercyOne North Iowa Medical Center is the area’s largest employer, operating alongside major corporate facilities for Kraft Heinz (notably manufacturing Jell-O products), Curries (commercial doors), Cargill Protein, and nearby RV manufacturer Winnebago Industries.
A low unemployment rate (3.3%) makes life even more affordable for residents of Mason City. The cost of living is over 10% lower than the national average and housing is 27.1% below normal as well. Utilities and groceries are only about 4% cheaper.
Mason City is world-renowned among architecture enthusiasts for its unparalleled collection of Prairie School homes, featuring the historic Park Inn Hotel — the last remaining hotel designed by Frank Lloyd Wright. It is also the hometown of The Music Man composer Meredith Willson, celebrated at the "Music Man Square" museum, while nearby Clear Lake offers boating and summer lakeside entertainment.
23. Dublin, Georgia
- Cost of living: 11.6% below U.S. average
- Population: 16,136
- Median household income: $42,988
- Median home value: $181,300
- Unemployment rate: 4.0%
Tiny Dublin, Georgia, punches well above its population-size weight. This town, situated about halfway between Atlanta and Savannah, hosts three institutions of higher education (Georgia Military College, Oconee Fall Line Technical College and Middle Georgia State University all have campuses there), a Veterans Administration Medical Center, and two nationally recognized historic districts.
Whether residents buy or rent, expenses related to keeping a roof over one's head are 23.8% lower than the U.S. average. The average price of a house in Dublin is $371,433, compared with $540,600 nationally. That represents a savings of 31.3%. Rents, meanwhile, are 13.8% cheaper.
And in a special break for Dublin's senior citizens, Georgia happens to be one of the more tax-friendly states for retirees. Although pensions, as well as 401(k) and IRA distributions, are partially taxable, taxpayers aged 62 and older may exclude up to $35,000 of their retirement income; that exclusion increases to $65,000 for those aged 65 and older.
Sadly, too many of Dublin's residents struggle despite its low cost of living. The town's poverty rate is 36.3% and that's more than double the Georgia state poverty rate of 13.4%.
22. Monroe, Louisiana
- Cost of living: 11.1% below U.S. average
- Population: 47,004
- Median household income: $40,505
- Median home value: $198,900
- Unemployment rate: 5.1%
Monroe is situated along Louisiana’s Ouachita River in the northeast of the state. The climate is subtropical; average summer temperatures reach up to the high 90s and humidity levels often reach over 80%. Residents of Monroe pay 21.2% less for utilities, and that will help offset the cost of using their air conditioners and fans. Winters tend to be mild.
The generally warmer temperatures make outdoor activities a must. You can kayak in Lake D'Arbonne State Park or take hikes on the grounds of the gorgeous Biedenharn Museum & Gardens. There you can enjoy a walled English garden and a Coke museum. That might seem like an odd combination, but the house was built by Joseph A. Biedenharn, the first bottler of Coca-Cola.
Homeownership is more attainable in Monroe than in most places. Housing costs are substantially lower here than in most places. That’s one of the reasons this city is 22nd on this list of cheapest cities. Your domicile will run you only 68% of the average costs in other cities. Healthcare costs come at a 10% discount.
Louisiana imposes low taxes in many areas. For example, there are no death taxes, and homeowners pay some of the lowest property taxes nationwide. The average effective property tax rate is 0.56%, currently among the lowest in the U.S.
21. Martinsville, Virginia
- Cost of living: 12.2% below U.S. average
- Population: 13,658
- Median household income: $46,727
- Median home value: $98,400
- Unemployment rate: 5.6%
Martinsville needs no introduction to race fans. The tiny Virginia town, an hour's drive south of Roanoke, lays claim to the Martinsville Speedway of NASCAR fame. Racing enthusiasts laud the short track for its tight turns and intimate seating.
Beyond the track, manufacturing has always been central to the area's economy, and although a number of firms have moved on over the past decades, factory work remains important. Major employers include Eastman Chemical (EMN), a plastics manufacturer, and Monogram Foods.
Martinsville has a rich history dating back to colonial times, and the town boasts multiple historic districts and historic sites, including the John Waddey Carter House and the Dry Bridge School.
On the leisure front, Martinsville is dotted with parks and outdoor recreation areas, and is known for the Piedmont Arts Association and the Virginia Museum of Natural History.
But Martinsville is particularly notable as one of America's cheapest small towns. Housing expenses are 30% below the national average. That's where the big savings end. Utility and transportation costs run almost 8% below the national average. Groceries and healthcare expenses are only 3.7% and 2.5% cheaper.
While Martinsville's older residents benefit from their Social Security benefits being exempt from income taxes, IRA/401(k) distributions and pension payments are taxed.
20. Dalton, Georgia
- Cost of living: 12.5% below U.S. average
- Population: 34,538
- Median household income: $63,577
- Median home value: $222,400
- Unemployment rate: 3.7%
Woodland Indians and the Muscogee Nation initially held the area of present-day Dalton, Georgia. The first recorded European in the area was Spanish explorer Hernando de Soto. Dalton is the county seat of Whitfield County. The U.S. government recently declared Dalton and Whitfield County to have more intact Civil War artifacts than any other place in the country.
Revitalization of the pre-Civil War-era craft of candlewick fabric gave rise to a cottage chenille bedspread industry. A stretch of highway passing through Whitfield County became colloquially known as "Peacock Alley" in reference to one of the most common patterns depicted on bedspreads. The bedspread business boomed to a multimillion-dollar industry by the 1950s and eventually gave way to the carpet industry.
Dalton is home to many of the nation's floor-covering manufacturers, primarily those producing carpet, rugs, and vinyl flooring. Dalton is often referred to as the "Carpet Capital of the World," home to over 150 carpet plants. The industry employs more than 30,000 people in the Whitfield County area. More than 90% of the world's functional carpet is produced within a 65-mile radius of Dalton.
Furnishing your home in Dalton is easy with the abundance of local carpet and textile makers. Housing is almost 30% lower than the national average. Home prices ($357,136) are over $183,464 cheaper and rent ($1,352) is $284 lower than what most people pay. Utilities are a relative bargain, at about 14.5% below average.
In 2024, Georgia moved to a flat personal income tax with a rate of 5.49%. Georgia taxes most retirement income, except Social Security benefits, but the state offers a hefty retirement income exclusion. And retirees should take note that there are no estate or inheritance taxes in Georgia.
19. Spartanburg, South Carolina
- Cost of living: 12.6% below U.S. average
- Population: 38,910
- Median household income: $51,964
- Median home value: $203,700
- Unemployment rate: 4.6%
Established in 1785 and named after the Spartan Regiment, a local militia that fought in the Revolutionary War, Spartanburg initially flourished as a frontier trading post before growing into an industrial powerhouse known as the "Hub City" of the Southeast’s textile industry. Nestled in the foothills of the Blue Ridge Mountains in South Carolina’s Upstate region, it sits strategically at the crossroads of Interstates 85 and 26.
The modern economy has successfully transitioned from textiles into an international manufacturing juggernaut. It is anchored by BMW Manufacturing Corporation, which operates its largest global assembly plant here, alongside corporate giants like Milliken & Company, Michelin, and the Spartanburg Regional Healthcare System.
The city features a vibrant, walkable downtown recognized as a state cultural district, complete with galleries, local breweries, and the Chapman Cultural Center. For recreation, the proximity to the Blue Ridge foothills grants residents access to Croft State Park, which features miles of hiking and equestrian trails and nearby mountain lakes.
18. Wilkes-Barre, Pennsylvania
- Cost of living: 12.6% below U.S. average
- Population: 44,423
- Median household income: $48,515
- Median home value: $117,200
- Unemployment rate: 4.7%
Wilkes-Barre is a hidden gem in northeastern Pennsylvania. Around two hours from New York and Philadelphia, the town sits on the banks of the Susquehanna River, in the heart of the Wyoming Valley. If you’re looking for a cheap place to live with plenty of access to outdoor activities, this might be the ideal spot.
The town boasts three riverfront parks: Nesbitt Park; the River Common, which hosts Rockin’ the River, a series of free concerts every summer; and Kirby Park, which has softball fields, tennis and volleyball courts and a running track. Baseball fans take note: Babe Ruth hit the longest home run in baseball history on October 12, 1926, during an exhibition game in Wilkes-Barre. He blasted the ball some 650 feet into Kirby Park; a kiosk marks the spot where it landed.
Kirby Park is a starting point for the Luzerne County Levee Trail — a 12-mile stretch that’s perfect for walking and cycling. Keen walkers might also enjoy the town’s Walkitecture tour, which takes you around historic landmarks, including the Market Street Bridge, designed by the firm that built the New York Public Library.
Housing in Wilkes-Barre is a comparative bargain, as the average home price of $277,857 is a whopping $262,743 (51%) less than the national average of $540,600. A number of other costs run above average. Utilities (6.2%) and transportation (8.6%) will cost you more than most other communities. Groceries and healthcare offer a small savings, coming in around 2% below average.
Downtown, you’ll find coffee shops, restaurants and community events in the Public Square (known as ‘the Square’), as well as a Farmers’ Market from summer through fall. The town has a growing network of independent shops and small businesses, while local employment relies heavily on transportation, utilities, education and healthcare.
Pennsylvania has a flat state income tax rate of 3.07%; however, municipalities and school districts can also impose taxes on wages or income. The average effective property tax rate is 1.26%, which is higher than in most other states. Pennsylvania's inheritance tax ranges from 0% to 15% depending on the age of the decedent and their relationship to the heir.
Retirees are in luck, as Pennsylvania doesn’t tax any traditional types of retirement income. That means your Social Security benefits, pension income and 401(k)/IRA distributions are tax-free.
17. Cookeville, Tennessee
- Cost of living: 13.0% below U.S. average
- Population: 36,088
- Median household income: $51,375
- Median home value: $305,400
- Unemployment rate: 4.4%
Cookeville, TN, packs a surprisingly big punch for its size (population just under 35,000, according to the 2020 United States Census). Home to Tennessee Tech University, it’s a college town with a thriving arts, food and music scene, just over an hour east of Nashville.
The overall cost of living in Cookeville is 13% below the national average, with housing and utilities offering the biggest savings at 23.4% and 19.4% lower, respectively, than what most Americans pay. Grocery prices (6.2%) and miscellaneous goods and services (5.0%) offer the least savings.
The nearby Performing Arts Center is the town’s main destination for concerts and theater performances, while Dogwood Park holds outdoor Shakespeare plays in early fall. The town’s strong community spirit is at the heart of successful annual events such as the Firefly music festival, Fall Fun Fest, and Cooking on the Square — a Cajun feast held to raise funds to build homes for families in need.
Manufacturing is a major part of the local economy. Oreck Corporation has its principal manufacturing facilities in Cookeville, as does ATC Automation, which makes industrial machinery. Transportation and supply chain management company Averitt also has its corporate headquarters in the town. But you don’t have to travel too far to escape all things industrial — Cookeville is within an hour of 10 state parks, including popular beauty spot Cummins Falls.
Tennessee ranks as the second most tax-friendly state to retire. It also has no income, estate and inheritance taxes. The Volunteer State also earned a spot on Kiplinger's list of States With the Lowest Property Taxes.
16. Danville City, Virginia
- Cost of living: 13.4% below U.S. average
- Population: 42,214
- Median household income: $44,423
- Median home value: $119,100
- Unemployment rate: 6.2%
Just 20 years ago, Danville City, Virginia, was in the throes of an economic crisis. The tobacco and textile industries on which it relied had collapsed, and the town’s key employer, Dan River Mills, had shuttered its huge operation, leaving thousands out of work and a local landmark derelict.
Fast forward to the present day, and it’s a different story. A concerted effort to regenerate the town and preserve its heritage is succeeding, as evidenced by a recent influx of new residents that runs counter to the region's broader trend of outward migration.
The Caesars casino, which opened in 2024, and the Danville Science Center have boosted the local economy by creating new jobs and drawing visitors to the area. Even the iconic Dan River Mills building is being restored and will soon offer residents a mix of housing, office and retail spaces, as well as a new riverfront park.
Housing costs in Danville City are 24.3% below the national average. The average renter pays $1,250, $386 less than the national average of $1,636. The average mortgage payment of $1,883 is $615 lower than the typical payment around the country of $2,498.
Unfortunately, for retirees in Virginia, pension income and distributions from IRAs and 401(k)s are taxable. However, Social Security benefits are tax-exempt.
As you might expect in a riverside town, outdoor pursuits feature heavily on the list of things to do. The River Dan, flowing for 214 miles through Virginia and North Carolina, supports fishing, paddleboarding, kayaking and wild swimming. But those who prefer dry land will find plenty of walking and mountain biking trails to explore, plus a local vineyard and a beer trail, as well as plenty of places to stop and refuel in the town itself.
15. Statesboro, Georgia
- Cost of living: below U.S. average
- Population: 34,149
- Median household income: $44,737
- Median home value: $197,900
- Unemployment rate: 5.6%
As home to the flagship campus of Georgia Southern University, Statesboro offers many of the benefits of college-town living but at exceedingly affordable prices. Thanks to its status as an academic hub, cultural attractions tied to the local university include a performing arts center, symphony, museum, planetarium and botanic gardens.
Another perk? The charming city of Savannah is just an hour's drive to the southeast.
Although the university is the area's largest employer, manufacturing jobs also play an important part in the local economy. At the same time, it should be noted that Statesboro has a high poverty rate of 36% vs 13.4% for the state of Georgia as a whole.
Statesboro's place among America's cheapest small towns is largely due to housing costs, which are 23.5% lower compared with the national average. Healthcare is another notable outlier, running 1.5% above the U.S. average.
Just watch out for taxes. While Georgia is generally a great state for retirees, income and sales taxes can put a pinch on middle-class families.
Georgia is generally a great state for retirees; there are no estate or inheritance taxes and Social Security benefits are exempt from income taxes. While pension income and 401(k) and IRA distributions are partially taxed, Georgia has adopted a flat tax that fell to 4.99% in 2026.
14. Burlington, Iowa
- Cost of living: 13.6% below U.S. average
- Population: 23,728
- Median household income: $59,000
- Median home value: $114,300
- Unemployment rate: 4.2%
The American Fur Company of John Jacob Astor established a post in the area in 1829. Burlington was once a bustling river port in the steamboat era. Today, the Port of Burlington is a rental facility on the Mississippi River just south of the Great River Bridge.
Burlington's roots are in transportation and manufacturing, and it saw many of the manufacturing jobs relocate in the 1970s and 80s. Manufacturing plants remain among the largest employers in the area, including American Ordnance LLC, Case Corporation, ABB (formerly General Electric), and Champion Spark Plugs. The average income and home values reflect the economic difficulties in Burlington. Income is $24,592 below average, and housing costs are over 34% lower than the national average.
Ripley's Believe It or Not has designated Snake Alley as "Unbelievably Crooked" and the #1 Odd Spot in Ripley's Guide to the Curious Corners of America. What might be Burlington's most famous landmark, Snake Alley, consists of five half-curves and two quarter-curves and is reminiscent of vineyard paths in France and Germany. It's reminiscent of Lombard Street in San Francisco. It hosts an annual uphill bike race and art fair.
Residents of Burlington pay slightly below average for utilities (4.1%) and transportation (3.4%) despite an overall cost of living 13.6% below average. And, grocery bills are about 5.7% lower.
Iowa has a flat state tax rate of 3.8%. It also no longer taxes retirement income for taxpayers 55 or older. And in another tax-friendly move, Iowa's inheritance tax has been completely repealed.
13. Nacogdoches, Texas
- Cost of living: 13.7% below U.S. average
- Population: 32,197
- Median household income: $39,281
- Median home value: $186,000
- Unemployment rate: 6.0%
Designated as the "Oldest Town in Texas," Nacogdoches was settled by Spanish missionaries in 1779, though its history as a Caddo Indian settlement stretches back thousands of years. It is tucked into the "Piney Woods" region of Deep East Texas, surrounded by dense forests of loblolly pine and oak, situated roughly halfway between Houston and Shreveport, Louisiana.
Stephen F. Austin State University is the town’s primary economic driver and employer, supplemented heavily by the poultry-processing giant Pilgrim's Pride, regional medical centers, and a steady wood-and-timber manufacturing industry supported by the surrounding national forests.
Despite producing 43.1% of total U.S. oil production and 29.2% of U.S. marketed natural gas production, Texas has high energy prices. Utilities in NAG are 4.7% higher than the national average. Housing costs are a bargain at over 25% less than most people pay. Groceries (5%) and healthcare costs (2.9%) only offer minimal savings.
The town's historic red-brick streets are lined with antique shops, local general stores, and historic landmarks like the Stone Fort Museum. Outdoor enthusiasts flock to the sprawling Sam Rayburn Reservoir for bass fishing and boating, or hike the extensive interpretive trails within the Mast Arboretum and the surrounding pine forests.
Residents of Texas do not pay state income taxes. There is also no inheritance tax or estate tax. Sales taxes start at 6.25%, and localities can tack on another 2%.
12. Houma, Louisiana
- Cost of living: 13.7% below U.S. average
- Population: 32,392
- Median household income: $58,194
- Median home value: $205,900
- Unemployment rate: 4.0%
Formed in 1832 along the banks of Bayou Terrebonne, Houma was named after the indigenous Houma people who inhabited the region. The geography here is intimately tied to the sea; located just an hour southwest of New Orleans, Houma is a maze of wetlands, swamps, and navigable bayous, defined by the rich alluvial soil that once fueled massive antebellum sugarcane plantations.
Housing, utilities and healthcare deliver the biggest savings in Houma. Overall, paying for a place to live will cost you 26.2% less than the national average. Utility costs are over 20% lower than average, making it cheaper to cool your home. After all, it is 85 degrees or above for at least four months of the year. Healthcare costs deliver more modest savings at 16% less than what most Americans pay.
While homeowners get a break as Louisiana has one of the lowest property tax rates in the nation, retirees can do even better. Eligible homeowners 65 and older can have the tax-assessed value of their property frozen. In order to qualify, residents must meet income guidelines that are set each year
In the 20th century, the discovery of oil and gas transformed Houma into a critical gateway for offshore drilling services. While the energy sector remains a major employment driver, the regional workforce is anchored by extensive marine transportation, Terrebonne General Health System, and a robust commercial seafood industry that supplies a massive share of Louisiana’s oysters, shrimp and crabs.
Life in Houma revolves around authentic Cajun heritage. The community hosts expansive Mardi Gras parades, and residents have instant access to world-class saltwater fishing, charter boat excursions, and swamp tours. The Southdown Plantation and Museum offers a deep look into the area's agricultural and native history.
11. Meridian, Mississippi
- Cost of living: 13.8% below U.S. average
- Population: 34,137
- Median household income: $36,526
- Median home value: $107,900
- Unemployment rate: 4.2%
Meridian was rebuilt from 1890 to 1930 after being almost totally destroyed in the Civil War. As a result, it has not one but nine registered historic districts. The Highland Park Dentzel Carousel, dating to 1909, is one of the more whimsical ones.
Meridian's other claim to fame is as the birthplace of Jimmie Rodgers, known as the "Father of Country Music." Music remains a centerpiece of Meridian's cultural scene.
Today, the federal government plays an important role in the local economy, as Naval Air Station Meridian and Key Field are two of the largest employers.
Happily, the men and women in uniform — as well as all of Meridian's civilian citizens — catch a break on living costs, which stand 13.8% below the U.S. average. But what pushes Meridian onto the list of America's absolute cheapest small towns is its comparatively modest housing costs, which are 35.8% lower than what the average American pays.
Meridian's older residents also benefit from Mississippi's status as one of the more tax-friendly states for retirees.
Sadly, as with several of the small towns on this list, Meridian's low cost of living comes at a high price. Its poverty rate of 34.9% is considerably higher than Mississippi's rate of 18.9%.
10. Thibodaux, Louisiana
- Cost of living: 13.9% below U.S. average
- Population: 15,732
- Median household income: $52,072
- Median home value: $232,500
- Unemployment rate: 4.0%
Incorporated in 1838 along the banks of Bayou Lafourche, Thibodaux served as a prominent trading post for early French, Spanish and Acadian settlers. Located roughly an hour and a half southwest of New Orleans, the area features the flat, fertile delta country of southeastern Louisiana, deeply intertwined with slow-moving bayous and historic coastal wetlands.
Higher education and healthcare form the modern economic backbone, led by Nicholls State University and the Thibodaux Regional Health System. Agriculture also remains highly relevant, with the surrounding parish serving as a major center for sugarcane processing and agricultural equipment manufacturing.
Renting or buying is much cheaper in Thibodaux, at 27.7% below the national average. Mortgage payments are 28% smaller than average ($2,498) at $1,799.
The city’s culture is intensely local, centered on French Creole traditions. Downtown Thibodaux offers historic walking tours past 19th-century architecture and traditional Cajun restaurants. The Jean Lafitte National Historical Park and Preserve’s Wetlands Acadian Cultural Center is located here, providing boat tours, live music and insight into the history of the Cajun people.
Retirees won't pay any state income tax on Social Security retirement benefits or federal retirement benefits (including military and non-military). Homeowners also get a break as Louisiana has one of the lowest property tax rates in the nation.
9. Hutchinson, Kansas
- Cost of living: 16.4% below U.S. average
- Population: 39,709
- Median household income: $58,687
- Median home value: $125,000
- Unemployment rate: 3.9%
When you’re deicing your driveway with salt, you’re probably not asking yourself where it was mined, but the answer might surprise you. In the U.S., there’s a chance it comes from the Midwest — Hutchinson, Kansas, to be precise.
This unassuming town, with a little more than 40,000 residents, dates back to 1871, when frontiersman Clinton “C.C.” Hutchinson established a town at the Santa Fe railroad’s crossing over the Arkansas River.
But it was Ben Blanchard, a land speculator, who hit the jackpot a few years later. When drilling for oil, Blanchard discovered the area’s rich salt deposits. Known as “white gold,” the mineral was vital for food preservation in the days before refrigeration. Salt mining became a major industry in the town and is still going strong, owing to its importance to agriculture and snow removal.
The business’s success reflects the bigger picture in Kansas, which remains slightly above the national average in the share of employees in manufacturing. Other large employers in the Hutchinson area include Siemens, Kuhn Krause, Sonoco and Morton Salt.
In this urban-rural community, life can be as quiet or as busy as you want to make it. Outdoor types will enjoy the surrounding scenery, bike and hiking trails and protected open spaces, including Dillon Nature Center. Hutchinson is home to the world-renowned Prairie Dunes Country Club and golf course (founded in the 1930s by a salt tycoon, Emerson Carey and his sons). Families will also enjoy the annual Kansas State Fair, the Cosmosphere space museum and the Strataca underground salt museum.
Buying a home in Hutchinson is a bargain, with prices at 30.9% below the national average, but it comes with a "relatively high" risk of experiencing tornadoes, according to FEMA. Grocery and utility expenses aren't as much of a bargain, offering a savings of 4% and 4.1%, respectively. Healthcare expenses are only 3.1% lower than the national average.
If you feel the need for the bright lights of a big city, you’re an hour’s drive from Wichita and around three hours from Kansas City.
Kansas recently enacted a number of tax cuts, including a repeal of its tax on Social Security benefits. However, it continues to tax income from private retirement plans, IRAs and 401(k)s. Retirees can plan to pass on more of their wealth because there is no estate or inheritance tax in Kansas.
8. Ardmore, Oklahoma
- Cost of living: 16.9% below U.S. average
- Population: 24,877
- Median household income: $53,900
- Median home value: $170,000
- Unemployment rate: 6.0%
Ardmore is another Sooner State locale on the list of the cheapest small towns in the U.S., thanks to a cost of living that is more than 15% below the national average.
It's about a 90-minute drive south from Oklahoma City. And just like that big city to the north, it offers citizens breaks on all kinds of expenses. Housing, as is always the case, leads the way in which locals save their hard-earned wages. Overall housing costs, which include mortgages, rents, insurance and related expenses, are 38.5% lower in Ardmore than the U.S. average.
Homeowners do well in the state, with median property tax bills well below the national average. Residents 65 or older with a previous year household income at or below $89,500 may qualify for a property tax valuation freeze.
True, groceries are only about 7.1% cheaper than the U.S. average, but transportation is almost 18.5% less expensive. Healthcare and miscellaneous goods and services are also on sale.
Major employers include Michelin North America, Mercy Hospital Ardmore and Valero Energy (VLO), which operates an oil refinery in the area.
Locals who love the great outdoors can avail themselves of Lake Murray State Park, while those looking to escape the brutal summer heat can find refuge in Ardmore's Greater Southwest Historical Museum. The town is also known as the home of the Samuel Roberts Noble Foundation, a leading agricultural research institution.
7. Florence, Alabama
- Cost of living: 17.1% below U.S. average
- Population: 41,701
- Median household income: $52,174
- Median home value: $196,300
- Unemployment rate: 4.3%
Florence and the Florence-Muscle Shoals metro area, which encompasses the birthplace of Helen Keller, sits in the northwest corner of Alabama on the Tennessee River. It's about a two-hour drive from Birmingham.
In addition to a low cost of living, Florence — and the surrounding area known to locals as The Shoals — boasts numerous attractions and a rich musical history. Florence native W.C. Handy's legacy as the "Father of the Blues" is celebrated with an annual summer festival. And it's no coincidence that The Rolling Stones recorded the hit songs "Wild Horses" and "Brown Sugar" at the nearby Muscle Shoals Sound Studio.
Florence claims Alabama's only house designed by legendary architect Frank Lloyd Wright. The city also hosts the University of North Alabama.
Best of all, the city's distinctive sites and southern charm come at a reasonable price. Housing-related expenses are 34.8% lower than what the average American pays. Healthcare, meanwhile, costs about 11.3% less. While the state has one of the lowest property tax rates in the nation, it also has one of the highest sales tax rates in the U.S.
All other major expenses tracked by the Cost of Living Index likewise take a smaller bite of folks' paychecks, securing Florence's place among the 25 cheapest places to live for U.S. city dwellers.
6. Charleston, West Virginia
- Cost of living: 17.5% below U.S. average
- Population: 47,421
- Median household income: $65,812
- Median home value: $203,300
- Unemployment rate: 3.7%
Charleston is located at the junction of the Elk and Kanawha rivers and is West Virginia’s capital city. The West Virginia Capitol Complex is a trip back in time. Clustered here are several landmarks to be toured, including the Capitol building, whose gold-leaf dome is taller than that of the U.S. Capitol. This city’s small scale and well-defined districts and neighborhoods make it easy to walk or bike around.
Housing prices are over 49% below the national average; homes sell for an average price of $274,429. That's over $250,000 less than what the majority ($540,600) has to plunk down.
Charleston makes it easy to get out into nature. Head to Kanawha State Forest or Coonskin Park for hiking and biking (the forest even has a pool). In the middle of the river and connected to land, you’ll find Magic Island, a park that offers beach volleyball and other fun. And within an hour’s drive, you have access to mountain biking, skiing and canoeing.
As of 2026, Social Security benefits are fully exempt from state income taxes. That's a significant break considering that 401(k) and IRA distributions are taxable.
5. Pittsburg, Kansas
- Cost of living: 18.0% below U.S. average
- Population: 20,637
- Median household income: $43,419
- Median home value: $123,200
- Unemployment rate: 4.0%
Pittsburg is about a two-and-a-half-hour drive due south from Kansas City on Route 69. When you get there, you'll find a small town with a cost of living at18% below the national average.
Once upon a time, the town was known for its abundance of coal and the Southern and Eastern European immigrants who worked the mines. Today, the area relies more heavily on higher education, thanks to the presence of Pittsburg State University. Famous alumni of Pittsburg's local university include actor Gary Busey and Brian Moorman, a retired two-time Pro Bowl punter for the NFL's Buffalo Bills.
Other major employers include transportation company Watco and Via Christi Hospital medical center.
As for leisure activities, tiny Pittsburg doesn't lack family-friendly things to do. Area highlights include Lakeside Park, the Crawford County Historical Museum and the Pittsburg Aquatic Center.
Although median incomes are well below the national average, average home prices are a whopping $124,800 cheaper at $415,800. All told, housing costs are 32.5% lower than what the typical American pays. Myriad other items are economical, as well. Healthcare is 20.2% lower and transportation runs about 19.1% cheaper in Pittsburg.
4. Ponca City, Oklahoma
- Cost of living: 18.5% below U.S. average
- Population: 24,326
- Median household income: $55,941
- Median home value: $135,800
- Unemployment rate: 4.2%
Ponca City traces its lineage to the days of the Land Run of 1893, when pioneers built a town in north-central Oklahoma near the Arkansas River and a freshwater spring.
Not long after its founding, enterprising oilmen successfully drilled wells in the area, and Ponca City remains an oil town to this day. Some of the area's largest employers include energy firms such as Schlumberger (SLB), ConocoPhillips (COP) and Phillips 66 (PSX).
Local attractions include the Marland Mansion, which was built by oil baron E.W. Marland in the early 20th century. It's now a museum. Dedicated in 1930, the Pioneer Woman Statue, a 30-foot-tall monument of a pioneer woman holding a young child, is also not to be missed.
Household incomes are well below the national median, but housing is a heck of a deal. The median price of a home in Ponca City is just $406,000. Nationally, it's $540,600. Total housing costs are almost 25% less than what the average American pays, according to C2ER's Cost of Living Index.
Residents also catch a break on all manner of miscellaneous goods and services, which are 18.1% lower than the national average. The discount on groceries is 8.6% and transportation is a smidge cheaper at 0.1% below the national average.
Although it's among the cheapest small towns in America, Ponca City's low cost of living comes with a downside: The town sits pretty much in the middle of Tornado Alley.
Oklahoma presents a mixed tax picture for retirees. While Social Security benefits and 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.
3. Salina, Kansas
- Cost of living: 18.9% below U.S. average
- Population: 46,307
- Median household income: $61,783
- Median home value: $173,200
- Unemployment rate: 3.3%
The small town of Salina sits at the intersection of Interstates 70 and 135, about 90 miles north of Wichita and 175 miles west of Kansas City.
Manufacturing and healthcare are among the town's most important industries. Major employers include Schwan's Company, the maker of Tony's frozen pizza; Great Plains Manufacturing, which serves the agricultural industry; and the Salina Regional Health Center.
Salina is also home to several institutions of higher education, including the University of Kansas School of Medicine Salina Campus and Kansas State University Polytechnic Campus.
Salina's economic mix has proven adept at delivering both low unemployment and low living costs. Housing expenses come in at roughly two-thirds of the national average, according to C2ER. Transportation is cheaper, too, running about 11.3% less than the national average.
Locals catch breaks in lots of other ways, too. Healthcare, housing and miscellaneous goods and services all cost at least 15% less than the national averages. Groceries and utilities are a bit more expensive, at only 5% and 0.4% below the national average.
On the other hand, taxes are somewhat burdensome statewide. Kiplinger's Kansas State Tax Guide rates Kansas as one of the least tax-friendly states for middle-class families, largely due to its high sales tax. Although Kansas is no longer one of the states that taxes Social Security benefits, many types of retirement income are subject to income taxes. Distributions and income from private pensions, IRAs and 401(k)s will be taxed as income.
2. Richmond, Indiana
- Cost of living: 19.3% below U.S. average
- Population: 35,581
- Median household income: $45,399
- Median home value: $114,400
- Unemployment rate: 4.2%
Few cities of any size can claim Richmond's place in the early history of recorded jazz. Some of the first jazz records were made in this small town, featuring greats such as Hoagy Carmichael, Duke Ellington and Louis Armstrong. There's a Walk of Fame celebrating jazz and other artists who recorded with Richmond's Gennett Records.
While jazz will always be part of its history, today's Richmond, an hour's drive west from Dayton, Ohio, is better known for its colleges and seminaries. They include Indiana University East, the Earlham School of Religion (part of Quaker-influenced Earlham College), and the Bethany Theological Seminary.
Inexpensive housing is a key to Richmond's place among our nation's cheapest small towns. Residents spend a third less on housing than the average American. Apartment rents are 53% lower than the national average, at $ 872. The average home price of $340,698 is 37% less.
Healthcare is comparatively a bargain, with costs coming in 16% lower than the national average.
Indiana has a flat rate income tax rate of 2.95% in 2026, which applies to 401(k), IRA and pension income. However, Social Security is exempt from income taxes. There are also no estate or inheritance taxes in Indiana.
1. Tupelo, Mississippi
- Cost of living: 20.7% below U.S. average
- Population: 41,173
- Median household income: $63,090
- Median home value: $206,800
- Unemployment rate: 3.8%
Tupelo, which sits 110 miles southeast of Memphis's Graceland, is best known as the birthplace of Elvis Presley. Tourists flock to the town's Elvis Presley Birthplace museum and the annual Elvis Festival held in June.
Not a fan of The King? The area's leisure and cultural scene also includes the North Mississippi Symphony Orchestra, Buffalo Park and Zoo, Tombigbee National Forest, the Tupelo National Battlefield, and the Tupelo Automobile Museum, among other attractions.
Tupelo's second-largest claim to fame is arguably its super-low cost of living. The comprehensive cost of living is 20.7% below the national average. Housing is almost 38.2% cheaper, groceries are 7.7% less expensive, and locals save about 12% on transportation, 20.2% on healthcare and 11.5% on utilities.
For residents not making their living as Elvis impersonators, major employers include North Mississippi Health Services and Cooper Tire & Rubber. Additionally, two regional banks — Renasant Bank (RNST) and Cadence Bank (formerly BancorpSouth) (CADE) — are headquartered in Tupelo.
Mississippi has a flat income tax rate that recently dropped to 4.0%. Retirement income is exempt in Mississippi, including Social Security, pensions and IRA and 401(k) distributions. Last, but not least, Mississippi does not have an estate or inheritance tax.
Source: C2ER's Cost of Living Index, 2026 Annual Average Data, published May 2026. Index data is based on average prices of goods and services collected during the first quarter of 2026, with index values based on the weights for 2024. Population data, household incomes, home values, poverty rates and other demographic information are from the U.S. Census Bureau. Local unemployment rates, courtesy of YCharts, are not seasonally adjusted and are as of July 30, 2025, for the month of June 2026, the latest available final data.
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