The cost of living refers to the overall expenses required to maintain a certain standard of living, including housing, utilities, groceries, transportation, healthcare, taxes, and other services. When assessing affordability, the cost of living index is a key metric. This article will examine 10 states that have some of the lowest living costs in the U.S. based on data from the Council for Community and Economic Research (C2ER), with each state's cost of living, median income, and unemployment rate compared to national averages.

West Virginia

West Virginia stands out with the lowest cost of living in the country, which is 14.4% below the national average. One of the major factors contributing to this is the state's incredibly affordable housing market, where the median home value is the lowest among all states. Charleston, the state capital, offers a cost of living that is 16% below average, making it a prime location for those seeking affordability. Known for its coal mining industry, West Virginia also boasts outdoor recreational activities, including hiking, mountain climbing, and historical landmarks like Harpers Ferry, attracting both nature lovers and history enthusiasts.

Oklahoma

Oklahoma’s cost of living is 13% lower than the national average, and its smaller towns, like Ponca City, offer an even more affordable lifestyle—19.5% below average. The state is celebrated for its diverse natural landscapes, such as the Wichita Mountains, and a vibrant cultural scene that blends Southern, Western, and Midwestern influences. Oklahoma is also rich in Native American history and cowboy culture, which are celebrated through local festivals and traditions.

Kansas

With a cost of living 12.5% below the U.S. average, Kansas is an affordable option for those seeking to live in the heart of the country. The state offers a variety of living environments, from the flat plains to the more varied terrain found in areas like the Flint Hills. Kansas is home to a thriving agricultural industry, which significantly contributes to its low cost of living, particularly in rural areas where housing is notably cheap.

Mississippi

Mississippi offers a cost of living 12.3% lower than the national average, placing it among the most affordable states. The city of Tupelo, Elvis Presley’s birthplace, offers a cost of living that is 17.1% below the national average, making it an especially attractive choice for budget-conscious individuals. While housing is inexpensive, Mississippi does have the lowest median household income on the list, which is more than $20,000 below the national average. Still, the state is known for its musical heritage, including rock ‘n’ roll and blues, as well as its rich Southern cuisine, such as fried catfish and chocolate pies.

Arkansas

With a cost of living 11.3% below the national average, Arkansas is another affordable option. The state is home to Walmart, which is based in Bentonville and serves as a major employer in the region. Arkansas’s natural beauty includes hot springs, caves, and forests, offering an abundance of outdoor activities. Additionally, the state is famous for its Crater of Diamonds State Park, where visitors can hunt for real diamonds.

Alabama

Alabama's cost of living is 11.2% lower than the national average, with Florence being the cheapest city in the state, where the cost of living is 16.4% below the national norm. Even in the more expensive city of Mobile, the cost of living remains 6.8% below the national average. Alabama is home to both forests and beaches and plays a crucial role in the U.S. steel industry, with abundant natural resources like iron ore and coal that fuel steel production.

Missouri

Missouri offers a cost of living that is 11.2% lower than the national average. While the state’s largest cities, such as Kansas City and St. Louis, are more expensive, they still maintain costs below the U.S. average, making them more affordable compared to other urban areas. Joplin, one of Missouri’s smaller towns, offers the lowest cost of living, around 14.5% below average. Missouri offers residents access to beautiful landscapes such as the Ozark Mountains and is known for its professional sports teams, including the St. Louis Cardinals and Kansas City Chiefs.

Iowa

With a cost of living 9.8% below the national average, Iowa is another affordable state. Des Moines, the state capital, is one of the most affordable capital cities in the country, with a cost of living 13.9% below average. Iowa is known for its rural charm, where residents can enjoy affordable housing and access to a wide range of outdoor activities, including hiking, fishing, and visiting historical landmarks like the site where the famous painting "American Gothic" was created. The state also boasts a high median household income, second only to Iowa’s neighboring state, Nebraska.

Tennessee

Tennessee has a cost of living that is 9.5% lower than the national average. Although Nashville is the most expensive city in the state, it still maintains a cost of living that is 1.2% below the national average. For those seeking even more affordable living, Knoxville offers a cost of living 13.3% lower than the U.S. average. Tennessee is famous for its music scene, particularly country and blues, and offers a wide variety of outdoor activities, including hiking in the Great Smoky Mountains.

Nebraska

Nebraska offers a cost of living that is 9% below the national average, and it boasts the lowest unemployment rate on this list. Although the state is often associated with vast fields of corn, it also offers residents plenty of recreational opportunities, such as attending the College World Series or exploring landmarks like Chimney Rock. Nebraska provides a relaxed Midwestern lifestyle with affordable housing and low unemployment, making it an appealing option for those seeking stability and affordability.