Ten Cheapest Small Towns to Live In

The cheapest small towns to live in might not be for everyone. True, small-town living has plenty of perks: light traffic, a strong sense of community and a slower pace of life.

Perhaps best of all, the cost of living is typically cheaper in small towns than in expensive big cities.

To get a sense of what inexpensive small-town living really costs, we compiled a list of the 10 cheapest small towns to live in America, with small towns defined as places with populations of approximately 10,000 to 50,000 people.

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We compiled our rankings based on the Council for Community and Economic Research's (C2ER) calculations of living expenses in 265 urban areas.

C2ER's Cost of Living Index measures prices for housing, groceries, utilities, transportation, health care, and miscellaneous goods and services, such as going to a movie or getting your hair done at a salon.

The data, which sorts through thousands of prices in hundreds of cities, allowed us to pinpoint the small towns with the absolute lowest living costs. (For larger urban areas, read our list of the 15 Cheapest Places to Live: U.S. Cities Edition).

You should weigh the pros and cons before you pack up and relocate to one of the 10 cheapest small towns in America. 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 10 cheapest small towns to live in the U.S.

10. Statesboro, Georgia

• Cost of living: 12.4% below U.S. average
• Population: 33,705
• Median household income: $42,884 ($80,610)
• Median home price: $400,483 (U.S.: $532,390)
• Unemployment rate: 5.8% (U.S.: 4.1%)

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 an hour's drive 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 37.2% vs 13.5% 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 25% lower compared with the national average. Miscellaneous costs run 13.7% below the U.S. average.

An appointment with a physician, for example, costs about 16.7% less in Statesboro, while dental care is 10% cheaper, according to C2ER's Cost of Living Index.

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 5.49% flat tax that will fall to 4.99% by 2029 if certain economic targets are met. Otherwise, the rate reductions could be delayed.

9. Meridian, Mississippi

• Cost of living: 13.1% below U.S. average
• Population: 34,466
• Median household income: $34,657
• Median home price: $350,000
• Unemployment rate: 4.60%

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 its economic life, 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 13.1% 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 35.4% lower than what the average American pays.

Meridian's older residents also benefit from the fact that Mississippi is 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 31.9% is considerably higher than Mississippi's rate of 19.1%.

8. Burlington, Iowa

• Cost of living: 13.1% below U.S. average
• Population: 23,800
• Median household income: $55,274
• Median home price: $364,000
• Unemployment rate: 4.9%

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 and a central city to the Chicago, Burlington and Quincy Railroad. The Port of Burlington is now a rental facility on the Mississippi River just south of the Great River Bridge. The city's population peaked in 1970.

Burlington's roots are in transportation and manufacturing, but it saw many of the manufacturing jobs relocate in the 1970s and 80s. Manufacturing plants are still among the largest employers in the area, including companies such as American Ordnance, Case Corporation, ABB (formerly General Electric) and Champion Spark Plugs.

The average income and home values reflect the economic difficulties in Burlington. Income is $25,336 below average, and home prices are more than $168,390 lower than the national average.

Ripley's Believe It or Not has designated Snake Alley, one of Burlington's most famous landmarks, as "Unbelievably Crooked" and the #1 Odd Spot in Ripley's Guide to the Curious Corners of America. Snake Alley consists of five half-curves and two quarter-curves and is reminiscent of vineyard paths in France and Germany. It's a reminder of Lombard Street in San Francisco. It plays host to an annual uphill bike race and art fair.

Residents of Burlington pay just slightly below average for utilities (1.2%) and transportation (5.6%) despite having an overall cost of living 13% below average. Grocery bills are about 5.3% lower than the national average.

Iowa's tax rates are generally favorable and are great for retirees.

Iowa would be a great destination for those planning an early retirement. It recently made retirement income tax-exempt for residents 55 and older and eliminated its inheritance tax for tax years 2025 and later. It also adopted a flat tax; the rate is 3.8%. The average effective property tax rate is 1.40% with a property tax cycle that happens across 18 months.

7. Kankakee Illinois

• Cost of living: 14.2% below U.S. average
• Population: 24,384
• Median household income: $45,119
• Median home price: $295,393
• Unemployment rate: 4.4%

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.

Small Newspaper Group publishes newspapers in the Midwest and employs about 100 people in the area. Serological Proteins is a medium-size health care 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 utilities are, on average, 35.3% and 11.3% 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.

The city has two softball complexes that have both been inducted into the Softball Hall of Fame. They host annual state and international tournaments, drawing nearly 50,000 spectators throughout the year. Some Kankakee youth baseball leagues have won state championships.

It's also home to two important Frank Lloyd Wright houses: the B. Harley Bradley and Warren R. Hickox houses. 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.

6. Hutchinson, Kansas

• Cost of living: 14.5% below U.S. average
• Population: 39,837
• Median household income: $58,801
• Median home price: $421,167
• Unemployment rate: 4.2%

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 for agriculture and snow removal.

Ironically, Hutchinson doesn't get much snow. The snowy period of the year lasts from November to March, with its peak in December, with an average snowfall of 2.9 inches.

The business’s success reflects the bigger picture in Kansas, which remains slightly above the national average in terms of the proportion of employees in manufacturing. Other large employers in the Hutchinson area include Siemens (wind turbine components), Kuhn Krause (agricultural machinery and parts), Sonoco (packaging) 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 70.2% 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 2.9% and .3%, respectively. Health care expenses are 13.4% lower than the national average.

Downtown is a hub for community events, shopping, dining, and entertainment. Public investment has redeveloped the area, and further improvements will include public green spaces, a river walk, an amphitheater and a water spray park. Uptown, you’ll find more shopping and the beautifully renovated B&B Theaters.

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 on passing on more of their wealth because there is no estate tax or inheritance tax in Kansas.

5. Ponca City, Oklahoma

• Cost of living: 17.6% below U.S. average
• Population: 24,377 
• Median household income: $55,270 
• Median home price: $420,000
• Unemployment rate: 3.7%

Ponca City traces its lineage to the days of the Land Run of 1893, when pioneers decided to build 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 Statute, 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 Ponca City home is just $390,000. Nationally, it's $520,771. Total housing costs are roughly two-thirds of 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 18.5% lower than the national average. The health care discount is 11.6% and groceries are a smidge cheaper at 6% below the national average.

Although it's among the cheapest small towns in America, Ponca City's low cost of living does come at a cost: The town sits pretty much in the middle of Tornado Alley.

4. Salina, Kansas

• Cost of living: 17.6% below U.S. average
• Population: 46,432 
• Median household income: $60,624 
• Median home price: $355,200 
• Unemployment rate: 3.6%

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 health care 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. Groceries and miscellaneous goods, and services all cost less than the national averages. Utilities are the outlier and is 2.5% above 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 because of a high sales tax. Kansas is one of the nine states that taxes Social Security retirement benefits.

3. Muskogee, Oklahoma

• Cost of living: 18.3% below U.S. average
• Population: 36,819
• Median household income: $48,735 
• Median home price: $356,725  
• Unemployment rate: 4.7%

Muskogee packs a lot of history, culture and higher education into a pint-size package.

Located about 50 miles southeast of Tulsa, the town traces its roots to 1817. It's home to four institutions of higher learning, as well as the Oklahoma School for the Blind.

Jim Thorpe – All-American, the 1951 film starring Burt Lancaster, was shot on the campus of what was then known as the Bacone Indian University in Muskogee. The town also boasts six museums and the Oklahoma Music Hall of Fame.

Let's not forget what is arguably the town's most famous appearance in popular culture: Merle Haggard's hit song "Okie from Muskogee," which became an emblem of Vietnam-era America.

Today, the area's employers include the U.S. Department of Veterans Affairs, a VA medical center and paper company Georgia-Pacific.

What really puts Muskogee on the map is its ultra-low cost of living. The biggest break comes from housing-related expenses, which are 35.2% lower than the national average, according to C2ER's Cost of Living Index. Health care is cheaper, too. Costs are almost 10.4% lower than what most Americans pay.

Retirees will be happy to know that Social Security benefits, military pensions and Railroad Retirement benefits are not taxed at the state level. However, pension income and distributions from 401(k)s and IRAs are partially taxable.

2. Richmond, Indiana

• Cost of living: 19.7% below U.S. average
• Population: 35,551 
• Median household income: $46,395
• Median home price: $325,000
• Unemployment rate: 4.5%

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, which is an hour's drive west from Dayton, Ohio, is known more 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 45% lower, at $885, than the national average of $1,600. The average home price of $325,500 is 39% less.

Health care is a bargain, too. For example, a visit to the eye doctor costs almost half the national average, while an appointment with a physician is 33% less expensive.

1. Tupelo, Mississippi

• Cost of living: 20.1% below U.S. average
• Population: 37,825 
• Median household income: $66,314 
• Median home price: $342,667
• Unemployment rate: 4.2%

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 living costs. The comprehensive cost of living comes in at 20.1% below the national average. Housing is almost 37% cheaper, groceries go for 5.8% less, and locals save about 11.9% on transportation, 18.9% on health care and 16.3% 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.

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