In this article
If you’re in the process of relocating to another state to save money, the following guide to the cheapest states to live in will help you find budget-friendly options that have affordable housing, low taxes, and overall savings on daily expenses.
Surprisingly Cheap States
Moving cross-country to a new and cheaper state is a great way to save money sustainably. While the moving costs will come with a nice price tag at first, in the long run, you will be able to save.
Moving to a state with a lower price of living, you can enjoy life and go out instead of paying a high price just for rent and not being able to afford to go out.
One of the most effective ways to manage moving costs—and possibly even lower your overall living expenses- is to choose a state with a lower cost of living. We are here to help you plan it out.
Now, we break it down with some surprising finds of the cheapest states to live in that make it worth moving cross-country. From Arkansas to Mississippi, you will be surprised by our findings.
1. Arkansas
Arkansas is one of the most affordable states in the U.S., making it a perfect option for those looking to move cross-country on a budget to a new state that will be sustainable for their pocket.
The cost of living in Arkansas is significantly lower than the national average, especially regarding housing. The rent rates can be as low as $300 for a two-bedroom outside the main cities.
Housing Costs: In Arkansas, the average home price is far below the national one. You’ll find affordable housing options in Little Rock, Fayetteville, and Springdale.
Rent is also very inexpensive, with the average rent for a one-bedroom apartment hovering around $700 per month, but much cheaper prices of around $300 can be found.
The area also has many trailer homes for the interim period, where you can park for as low as $50 a month and connect to water and septic tanks.
Other: Utilities in Arkansas are much lower than in many other states, with average electric bills costing less than $150 monthly.
This Southern jem has nice weather year-round (aka low heating bills), and groceries come cheap, healthcare options for all, and public busses are also cheaper than national averages, making it a great budget-friendly state. Arkansas for the win!
Frequently Asked Questions
What is the cheapest state to live in?
Arkansas, Oklahoma, and Mississippi are ranked among the cheapest to live in in 2025, with low housing costs, affordable groceries and restaurants, and lower-than-average utility prices. Kansas is another great option if it’s education for the kids you need.
How do I find affordable housing?
After doing some research online about areas, go and physically visit the state and check out different neighborhoods in person. Only then can you lock down your new housing. The local neighbors will have the best tips on which areas are cheaper and where you can find a steal.
Are utilities cheaper in some states than others?
Yes, utility costs change depending on the area you live in. States in the Midwest and South have lower utility rates than coastal states like California or New York. Also, moving to a place where you need more heat or cooling will add significantly to your bills.
What are the best cities for affordable living?
As mentioned above, Oklahoma City, Little Rock, and Cleveland have a great balance of affordable homes and rent, low living costs, and job opportunities.
How can I save money when moving cross-country?
Try doing it by renting a moving truck or using a moving container, packing your home up, and moving during the off-peak season. Understanding which states and cities are the cheapest to live in will significantly cut your overall relocation costs.
Thinking of making Arkansas your new home? Use our moving cost calculator to get a personalized moving cost estimate and budget for your cross-country move today!”
2. Oklahoma
Everyone in the US often overlooks Oklahoma, but you will be shocked to learn that it offers incredible job opportunities, especially in cheaper cities. It’s one of the few states where you can live comfortably with a lower income.
Housing Costs: Oklahoma is known for its affordable real estate. The average home price in Oklahoma is about $150,000, which is nearly half the price of homes in pricier states like California or New York.
It is a perfect starter state for those wanting to buy their first investment home. Renting here is also inexpensive, with one-bedroom apartments averaging $600 monthly.
Other Expenses: Utilities are quite reasonable here, and the weather is great. Many companies relocating to Oklahoma and have plans to move in 202,5 meaning that job prospects are strong, especially in areas of tech, energy, and healthcare. Oklahoma’s state income tax is also pretty love, making it a good choice for people looking to stretch their dollar or find a new job.
3. Tennessee
Tennessee made every list and ranking as one of the most affordable states to live in, thanks to its lack of state income tax, reasonable housing costs, and lower-than-average overall costs of life. This Southern Jem has a great music scene and will help you save big time.
Housing Costs: Tennessee’s big cities of Nashville and Knoxville, are home to a great crowd- many young professionals, families, and retirees due to the affordable housing.
The average home price is around $250,000, which is still very affordable compared to cities on the East Coast. Rent is reasonable, with a one-bedroom apartment in the city center costing you about $1,000 a month.
Other Expenses: Besides low housing costs which is a major monthly expense, TN has a great job market, especially in health, tourism, and manufacturing.
Utilities, health, and grocery prices remain low, making it a great and growing destination for cross-country movers in need of a more affordable life.
4. Mississippi
Mississippi is known for its low housing prices, making it one of the most affordable places to live in the U.S.! This Southern state with charm state has small-town vibes but also has opportunities for big companies in larger cities like Jackson.
Housing Costs: Mississippi has some of the lowest home prices in the country, with a three-bedroom home costing around $150,000.
You’ll find even more savings for renters, as rent for a one-bedroom apartment averages just under $600 per month. It isn’t a great place to buy a home for rental investment but rather a home you want to live in.
Other Expenses: Mississippi’s overall cost of living is 20% lower than the national average! That means big life adjustments.
Expect low taxes in MI, making it an great choice for anyone looking to save money while moving cross-country for their pocket.
5. New Mexico
If you’re looking to move to the Southwest to save, New Mexico has low costs combined with incredible nature, diverse culture, and a laid-back lifestyle. Albuquerque and Santa Fe will win over your heart and are affordable yet cool and artsy.
Housing Costs: New Mexico has a very reasonable housing market, with an average home price of around $240,000. There are great banking options to take out a loan.
Rent is also affordable here, with one-bedroom apartments averaging around $750 to $850 per month in the city and cheaper outside. Whether you want a desert home or a modern apartment, many affordable options here just waiting for you.
Other Expenses: The cost of living in New Mexico is significantly lower than the national average. Food costs are very low here whether it’s a grocery store and you cook or go out for great Mexican bites.
There are a lot of fun activities here that won’t break the bank. New Mexico also has a low state income tax rate, which will save you money in the long run.
6. Kansas
Kansas the sunflower state is a hot spot for easy Midwest life for cross-country movers seeking affordability and great schools for the kids.
With low housing prices and great suburbs with the best it’s one of the best places to move without breaking your budget for your kid’s future.
If you love football then you can be proud of the Chiefs and Patrick Mahomes.
Housing Costs: The average home price in Kansas as of 2025 is around $170,000, and rent prices are very reasonable in the city and the suburbs with similar prices.
A one-bedroom apartment costs between $600 and $1000 per month. This affordability great public schooling system and the state’s low taxes make Kansas a smart choice for anyone looking to save on costs.
Other Expenses: The overall cost of living in Kansas is 10-20% lower than the national average, which means you’ll save on utilities, food, transportation and just about everything.
Kansas also has a low unemployment rate and offers job opportunities in education, agriculture, technology, and healthcare.
Wrapping Up and Saving Money
Choosing the right state to move to to bring about overall savings and improve your quality of life will make all the difference! Kansas, Arkansas, Oklahoma, and Tennessee offer a combination of affordable housing, low taxes, and budget-friendly expenses. Whether you’re relocating for your pockey, your new job, family, kids schooling or just for a change of pace, it’s worth considering how much your new state will cost and which offers the best financial advantage for your move. By considering all these options, you’ll be in a great position to start your new life cross-country without breaking the budget lines.
