Thinking about moving in 2026? Many states across the U.S. offer affordable housing costs, low unemployment rates, and plenty of things to do. Check out our list of the best affordable states to live in 2026!
Alabama
- Population: 4,903,185
- Home Price: $128,500 median purchase price; $728 median monthly rent
- Median Household Income: $44,758
- Unemployment Rate: 4.8%
- Cost of Living: 12% lower than the U.S. average
If you want to live in an affordable Southern state, consider Alabama! In addition to offering low sales tax and income tax, there are plenty of jobs in Alabama across key industries like aerospace, bioscience, technology, and innovation. Start your career at industry leaders like healthcare provider Encompass Health, full-service commercial banker Regions Financial, or sporting-goods retailer Hibbett! Residents living in northern Alabama will enjoy picturesque views of the Talladega National Forest and Red Mountain Park, while those living in the southern part of the state have access to the best beaches in Alabama and the Gulf of Mexico. For those looking for things to do in the Yellowhammer State, be sure to visit historical sites in Montgomery or Birmingham, like the Rosa Parks Museum or the Birmingham Civil Rights National Monument.
Arkansas
- Population: 3,017,825
- Home Price: $114,700 median purchase price; $689 median monthly rent
- Median Household Income: $42,336
- Unemployment Rate: 4.0%
- Cost of Living: 14% lower than the U.S. average
There’s plenty to experience in the affordable state of Arkansas. The Land of Opportunity has low-cost housing prices for their French Colonial, Federal, and Greek Revival-style homes—and is home to the beautiful city of Fayetteville, one of the best places to live in the South! Residents can find jobs in Arkansas with the state’s largest employers, including the Fortune 500 company headquarters of Tyson Foods, J.B. Hunt Transport Services, and Walmart. Discover how this state earned the nickname, “The Natural State,” by checking out any of the 52 historic state parks in Arkansas. And enjoy incredible outdoor recreation attractions including the Ozark Mountains, Petit Jean State Park, and Pinnacle Mountain State Park.
Georgia
- Population: 10,617,423
- Home Price: $152,400 median purchase price; $897 median monthly rent
- Median Household Income: $51,037
- Unemployment Rate: 5.3%
- Cost of Living: 7% lower than the U.S. average
Despite being one of the most populous states, Georgia remains affordable, making it one of the best states to live in for cost of living in 2026! Residents in Georgia can benefit from low taxes, and non-taxable Social Security income makes it one of the most tax-friendly states for retirees. Georgia also offers several affordability and assistance programs designed to help residents with funds for groceries, provide low-cost medical care, and find safe and affordable housing. Applicants in the Empire State of the South can find jobs with top employers in Georgia like The Home Depot, United Parcel Service (UPS), and Delta Air Lines—which are all based out of Atlanta! Explore Georgia’s great outdoors in Stone Mountain Park, ride roaring coasters at Wild Adventures, or learn the origins of one of the world’s most beloved fountain drinks at the World of Coca-Cola. History buffs can spend the day at the Martin Luther King, Jr. National Historical Park, visiting important sites like the Birth Home of Martin Luther King, Jr., and Ebenezer Baptist Church.
Indiana
- Population: 6,732,219
- Home Price: $126,500 median purchase price; $758 median monthly rent
- Median Household Income: $50,433
- Unemployment Rate: 4.4%
- Cost of Living: 10% lower than the U.S. average
Wondering what makes Indiana an affordable Midwest state? The Hoosier State offers an overall lower cost of living, and Indiana housing costs come in at about 20% below the national average—making it home to some of the country’s strongest housing markets and best places to live in the Midwest. Though there are a variety of options for employment in Indiana, many of the biggest employers are located in Indianapolis—including pharmaceutical manufacturer Eli Lilly, health insurance company Elevance Health, and agricultural chemical company Corteva. Outdoor lovers can discover great things to do in Indiana at fun attractions like Marengo Cave, Hoosier National Forest, and Indiana Dunes National Park. Or enjoy family fun in Indiana by visiting The Children’s Museum of Indianapolis and touring the famous Fort Wayne Museum of Art!
Iowa
- Population: 3,155,070
- Home Price: $132,800 median purchase price; $715 median monthly rent
- Median Household Income: $54,570
- Unemployment Rate: 3.1%
- Cost of Living: 10% lower than the U.S. average
Iowa boasts low housing costs, some of the nation’s most affordable healthcare, low grocery prices, and an active job market—making it a great state to call home! Find work at top Iowa employers like Hy-Vee, United Cooperative, and Principal Financial Group. You can also explore other important industries in Iowa, such as advanced manufacturing, renewable energy, and distribution and warehousing. Ready to retire? With Social Security benefits exempt from income taxes and other retirement incomes deductible, the Hawkeye State is ideal for retirees. Plus, there are plenty of fun things to do in Iowa for all ages, with thrilling rollercoasters at Adventureland Resort, natural exhibits at the National Mississippi River Museum & Aquarium, and scenic views from The Covered Bridges of Madison County. And don’t forget to bring the whole family to celebrate agriculture, industry, and entertainment at the world-famous Iowa State Fair!
Kansas
- Population: 2,913,314
- Home Price: $135,300 median purchase price; $775 median monthly rent
- Median Household Income: $53,571
- Unemployment Rate: 3.5%
- Cost of Living: 11% lower than the U.S. average
Check out the state of Kansas if you’re looking for affordable living, great job opportunities, community, and accessible entertainment. In addition to boasting a strong housing market and a reasonable cost of living, Kansas is also known for being a top agricultural producer. Residents of the Sunflower State can find plenty of jobs in Kansas across popular fields like bioscience, logistics and distribution, and manufacturing at employers like Koch Industries, Garmin, and Synergy Group. Kansas also offers excellent entertainment and historical attractions like the Dwight D. Eisenhower Presidential Library & Museum, Oz Museum, and Sedgwick County Zoo—in addition to the big-city amenities and entertainment in Kansas City, like Kansas Speedway, Kansas City Chiefs (NFL) and Royals (MLB) games, Legoland, and more!
Mississippi
- Population: 2,976,149
- Home Price: $105,700 median purchase price; $723 median monthly rent
- Median Household Income: $40,528
- Unemployment Rate: 5.5%
- Cost of Living: 17% lower than the U.S. average
Referred to as the Magnolia State, Mississippi has been ranked among the most affordable places to live in the U.S. thanks to not only its low housing costs, but also having some of the lowest gas costs. The state of Mississippi has an especially low property tax and offers full tax exemptions for all forms of retirement income, including Social Security and IRA income. The top careers in Mississippi are usually in the fields of agriculture, manufacturing, energy, and forestry, and residents can find jobs in Mississippi at top employers like the University of Mississippi and Southern Tire Mart. For recreation, residents will find plenty of fun things to do in Mississippi with major attractions like the Davis Bayou Area of Gulf Islands National Seashore and the Elvis Presley Birthplace, as well as landmark museums like the Mississippi Museum of Natural Science, Mississippi Civil Rights Museum in Jackson, and the GRAMMY Museum.
Missouri
- Population: 6,137,428
- Home Price: $141,200 median purchase price; $759 median monthly rent
- Median Household Income: $49,593
- Unemployment Rate: 4.1%
- Cost of Living: 12% lower than the U.S. average
Missouri is another one of the most affordable states to live in due to its reasonable living costs and housing prices as much as 22% below the national average! For those wanting urban life, the cost of living in St. Louis is 10% lower than the national average, which makes it an affordable U.S. city to call home. There are also excellent education opportunities like the Midwest Student Exchange Program, which offers Midwestern students a discounted tuition rate, helping to alleviate the cost of living in Missouri for students and young professionals. Missouri’s major industries include agriculture, aerospace, and manufacturing, but residents can also find jobs at the headquarters of large employers like Ascension, Enterprise Holdings, and Anheuser-Busch. And, after a long day of work, stay busy with fun Missouri attractions like Worlds of Fun, Gateway Arch National Park, the Missouri Botanical Garden, and one of the best boating lakes in the U.S., the Ozarks!
Nebraska
- Population: 1,934,408
- Home Price: $137,300 median purchase price; $745 median monthly rent
- Median Household Income: $54,384
- Unemployment Rate: 2.9%
- Cost of Living: 11% lower than the U.S. average
Aptly-named the Cornhusker State, Nebraska is home to a sprawling agricultural landscape in the heart of America’s Great Plains. Not only is it ranked among the best states to live in the nation, but it’s an especially affordable place to live—boasting some of the lowest utility costs. Whether you’re seeking employment in Nebraska at the headquarters of Fortune 500 companies like Berkshire Hathaway or Union Pacific, or settling down after military service, the state’s largest city, Omaha, is an excellent Midwest city for everyone from young professionals to retired veterans. Check out affordable housing in Nebraska with quaint styles like bungalow, Colonial Revival, and American Foursquare. Get acquainted with Nebraska’s history at classic venues like the Durham Museum or Nebraska State Capitol. Explore the great outdoors by trekking through North Platte River trails at Chimney Rock or hiking the grounds at Toadstool Geological Park. Or spend a day with family viewing animal exhibits up-close at one of the best zoos in America, Henry Doorly Zoo!
Ohio
- Population: 11,689,100
- Home Price: $131,900 median purchase price; $743 median monthly rent
- Median Household Income: $50,674
- Unemployment Rate: 4.6%
- Cost of Living: 8% lower than the U.S. average
Considered the Birthplace of Aviation, Ohio provides not only an affordable place to live in the U.S., but a wonderful way of life with a variety of amenities and things to do! The state has great tax assistance programs for residents, like VITA, and is an especially affordable place to live for retired military—military retirement pay isn’t taxable and Social Security income is exempt from state income tax, as well. You can also find great careers in Ohio in industries like manufacturing, healthcare, and education, or at the headquarters of top companies like Kroger, Cardinal Health, Weston, and more. While the Buckeye State is known for its educational opportunities at Big Ten university Ohio State, it also offers amazing hiking at popular Ohio state parks like Hocking Hills State Park, John Bryan State Park, and East Harbor State Park. Want to find other fun things to do in Ohio? Head to Cincinnati to walk through the Cincinnati Zoo or Columbus for the Columbus Zoo & Aquarium, find the Rock & Roll Hall of Fame in Cleveland, spend the day at iconic Six Flags Cedar Point, or tour the National Museum of the U.S. Air Force!
Oklahoma
- Population: 3,956,971
- Home Price: $121,300 median purchase price; $742 median monthly rent
- Median Household Income: $48,038
- Unemployment Rate: 3.6%
- Cost of Living: 14% lower than the U.S. average
Want to move to a state with one of the lowest costs of living? Oklahoma consistently ranks as one of the states with the most affordable housing costs. The state also has a number of financial assistance programs through staples like SNAP and WIC, as well as local nonprofit Bethel Foundation for single mothers and young children. Aerospace, bioscience, and engineering are among Oklahoma’s major job industries, with big employers including companies like H&P, Saint Francis Health System, and The University of Oklahoma. The Sooner State also offers major attractions in affordable cities like Oklahoma City and Tulsa at the family-friendly Oklahoma City Zoo and Tulsa Air & Space Museum. And outdoor enthusiasts can find a variety of fun things to do in Oklahoma with spots like the Woolaroc Museum & Wildlife Preserve and the Turkey Mountain Urban Wilderness Area.
South Dakota
- Population: 884,659
- Home Price: $146,700 median purchase price; $676 median monthly rent
- Median Household Income: $52,078
- Unemployment Rate: 2.8%
- Cost of Living: 11% lower than the U.S. average
Living in South Dakota gives you incredible access to a variety of job industries, outdoor recreation spots, and more! With no state income tax in South Dakota and tax-friendly options for retirees, it’s among the most affordable states in America and one of the best places for retirees looking to relocate. The Mount Rushmore State is home to the headquarters of large companies like Sanford Health, Raven Industries, and Daktronics—though professionals also have access to careers in South Dakota in popular industries like manufacturing, bioscience, livestock development, and cybersecurity. With a history that’s rich in Native American culture, residents can explore cultural sites like the Crazy Horse Memorial, or easily visit American history sites like Mount Rushmore National Monument and Custer State Park. Or check out top South Dakota outdoor recreation spots like Badlands National Park, Wind Cave National Park, Jewel Cave National Monument, and Black Hills National Forest!
Tennessee
- Population: 6,833,174
- Home Price: $146,000 median purchase price; $782 median monthly rent
- Median Household Income: $46,574
- Unemployment Rate: 4.6%
- Cost of Living: 11% lower than the U.S. average
Looking for a state with festive live music, amazing barbecue, and great affordability? Consider moving to Tennessee! With great cities like Nashville, Memphis, and Chattanooga, The Volunteer State has no income tax, which helps boost an already affordable cost of living in Tennessee. While healthcare and manufacturing make up the top job industries, residents can also find careers in Tennessee at major companies like FedEx, Dollar General, and Bridgestone. If you’re an outdoor enthusiast who enjoys hiking, fishing, and whitewater rafting, you’ll have a blast at nearby Great Smoky Mountains National Park and Cherokee National Forest. Be sure to stop in for some of the best BBQ in Tennessee at must-try spots like Rendezvous in Memphis and Peg Leg Porker in Nashville. Or visit other top attractions in Tennessee like Dollywood, Graceland, and the Country Music Hall of Fame & Museum!
West Virginia
- Population: 1,792,147
- Home Price: $107,400 median purchase price; $658 median monthly rent
- Median Household Income: $42,644
- Unemployment Rate: 4.1%
- Cost of Living: 15% lower than the U.S. average
West Virginia, also known as the Mountain State, is one of the cheapest states to live in with a plethora of beautiful rivers and mountains, as well as a vast park system. With low property taxes and real estate costs, West Virginia is one of the least expensive states to live in for housing. The state’s main industries include natural sectors like forest products and manufacturing or technological fields like aerospace and energy. Find jobs in West Virginia at some of the state’s largest companies, including West Virginia University, Huntington Alloys Corporation, or Thomas Hospitals. Get up close with nature at Blackwater Falls State Park, Harpers Ferry Historical Park, or Cass Scenic Railroad State Park. Or traverse the West Virginia mountains by skiing at Snowshoe Mountain or hiking to Spruce Knob.
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The goal of Extra Space Storage’s Best Places to Live selections is to help diverse audiences at varying stages of life make informed decisions about where to live. To provide a well-rounded and accurate view of each metro area, we consider factors like cost of living, job market, local attractions, education, and more. Learn more about our methodology today!
State statistics from AreaVibes
