What Are the Cheapest Cities to Live in the U.S.? (2026)

While the most affordable city is subjective, the cheapest cities to live in the United States include Decatur, Illinois, with a cost of living index (COLI) of 80, Brownsville, Texas, with a COLI of 85, and Wichita, Kansas, with a COLI of 87. With rising living costs nationwide, finding an affordable place to live has become a crucial step toward achieving financial freedom and a better quality of life. 

So, where can you find the most affordable cities in the U.S.? This list is based on the most recent data from trusted sources and government platforms, including the Bureau of Labor Statistics, Zillow and Redfin. Find out how much it costs to live in each city, other factors that impact the cost of living and how to choose the most affordable city for you. 

What Are the Fundamentals of Cost of Living?

The COLI is a tool that standardizes and compares expenses across different geographic regions. It’s the only local-level cost-of-living indicator available in America. 

The COLI works on a 100-point system. Any city that scores below 100 is cheaper than the national average, while a higher score indicates a higher cost of living. For example, if a place scored 115, it’s 15% more expensive than average. In 2026, as inflation and high housing demand continue to stretch budgets, a city is often considered affordable if its index score is at least 10% below the national average.

Here are the major categories that indices measure: 

• Housing: This is the largest factor. It often accounts for the majority of a person’s budget.
• Utilities: This includes electricity, natural gas, water and Internet. While their costs vary, you can arrange for fixed or variable bills each month. 
• Transportation: This includes vehicle fuel, car insurance, public transit availability and cost, and general walkability. 
• Groceries and food: This cost can vary based on the city’s supply chains and taxes. 
• Health care: This includes the costs for medications, insurance premiums and doctor visits, which can differ by state and metro area. 

These factors are heavily influenced by regional economies — areas with high-paying sectors like tech and finance in the Northeast and West see higher costs, while the Midwest and South remain more affordable due to economies based in agriculture and manufacturing.

What Are the Most Affordable Cities in the U.S.?

Here are some of the cheapest cities to live in 2026 that also provide a high quality of life. 

1. Decatur, Illinois

Known as the “Soybean Capital of the World,” Decatur is among the U.S. cities that offer the lowest living costs. It’s an industrial heartland with one of the most affordable housing markets in the U.S. It’s centered around Lake Decatur, which provides ample opportunities for boating and recreation throughout its four-season climate. While amenities are modest in a large city, its low cost of living provides residents with significant disposable income.

Key details: 

• Region: The Midwest
• Cost of living: 20% below the national average
• Median home price: $98,014
• Average rent: $798
• Monthly energy bill: $233.50
• Job market analysis: Most of Decatur’s economy revolves around agriculture and manufacturing. Major employers include Archer Daniels and Midland, Caterpillar Inc., and Decatur Memorial Hospital. The unemployment rate is 6.6% as of December 2025.
• Best for: People working in agriculture or manufacturing and first-time homebuyers with limited budgets

2. Wichita, Kansas

While Wichita is a global hub for high-tech aviation, it offers a surprisingly down-to-earth, affordable lifestyle. It boasts a vibrant arts scene for its size, including the Wichita Art Museum and Music Theater Wichita, as well as numerous parks and a family-friendly atmosphere. Many residents also love its distinct four seasons. It’s a place where strong career opportunities and friendly community spirit create a perfect balance for residents. 

Key details: 

• Region: The Midwest
• Cost of living: 13% below the national average 
• Median home price: $195,309
• Average rent: $1,037 
• Monthly energy bill: $205.70
• Job market analysis: As the “Air Capital of the World,” Wichita’s job market is dominated by aviation and aerospace manufacturing, with major employers like Textron Aviation, Koch Industries and McConnell Air Force Base. The unemployment rate is 3.7% as of December 202. 
• Best for: Young professionals, engineers and families looking for an affordable city with a solid job market

3. Brownsville, Texas

At the Southern tip of Texas, Brownsville offers a unique blend of cutting-edge aerospace innovation, a rich bicultural heritage and extremely low living costs. It has a subtropical climate, ideal for those who dislike winter. Its unique U.S.-Mexico border culture, authentic cuisine and proximity to the Gulf Coast make it a one-of-a-kind destination. 

Key details: 

• Region: The South
• Cost of living: 15% below the national average
• Median home price: $190,763
• Average rent: $1,171 
• Monthly energy bill: $143.93
• Job market analysis: The job market is rapidly growing, driven by international trade through the Port of Brownsville and the Aerospace industry, led by SpaceX’s Starbase facility. The public school system and health care are also major employers. The unemployment rate is 6.4% as of December 2025.  
• Best for: Retirees, remote workers and young people searching for an extremely low cost of living in a warm, culturally rich location

4. Enid, Oklahoma

If you’re looking for the classic, small-town American feel with an incredibly low price tag, Enid is your answer. It has a four-season climate with hot summers and mild winters. This friendly Oklahoma community is built on agriculture and its deep connection to Vance Air Force Base. It’s also home to numerous parks, a symphony orchestra and community events like the Tristate Music festival. 

Key details: 

• Region: The South
• Cost of living: 11% below the national average
• Median home price: $131,424
• Average rent: $1,069
• Monthly energy bill: $211.78
• Job market analysis: The economy is anchored by Vance Air Force Base, one of the busiest pilot training bases in the country. The unemployment rate is 3.6% as of December 2025. 
• Best for: Families and retirees looking for a low cost of living and a quiet, community-oriented lifestyle

5. Huntsville, Alabama

Nicknamed “The Rocket City,” Huntsville is one of the South’s most innovative cities, with deep ties to NASA and aerospace engineering. It has a humid subtropical climate and ample green space, including the Monte Sano State Park, which is perfect for hiking and camping. This city is a rare find where high-paying tech jobs coexist with a cost of living well below the national average. 

Key details:

• Region: The South
• Cost of living: 9% below the national average 
• Median home price: $280,326
• Average rent: $1,130
• Monthly energy bill: $193.07
• Job market analysis: A powerhouse for engineering and technology, Huntsville’s job market is anchored by NASA’s Marshall Space Flight Center and the U.S. Army’s Redstone Arsenal. Dozens of private aerospace and tech companies also have a major presence. The unemployment rate is 1.9% as of December 2025.
• Best for: STEM professionals, engineers and families who desire a high-paying job market in an affordable environment

6. Casper, Wyoming

Nestled against Casper Mountain, this city offers a classic American West experience, blending rich oil and gas history with stunning outdoor recreation. Residents enjoy four seasons with easy access to hiking, skiing and fishing along the North Platte River. Casper provides a small-town community feel with the amenities of a larger urban center. It’s a rugged and scenic place to call home. 

Key details:

• Region: The West
• Cost of living: 10% below the national average
• Median home price: $300,209
• Average rent: $1,210
• Monthly energy bill: $219.86
• Job market analysis: The economy is historically anchored in the energy sector, specifically oil and gas. Health care and education are major employers, with Banner Health and Natrona County School District providing numerous jobs. Casper’s unemployment rate is 3.7% as of December 2025.
• Best for: Outdoor enthusiasts and workers in the energy and health care sectors 

7. Spokane, Washington

Tucked in the Inland Northwest, Spokane offers a perfect blend of city life and natural beauty without the high price tag of other West Coast metros. A river runs through the heart of downtown, which features the iconic Riverfront Park. With a thriving arts scene, a growing food culture and access to dozens of lakes and mountains, it’s a haven for those who want urban amenities and outdoor adventure. 

Key details:

• Region: The West
• Cost of living: 1% below the national average
• Median home price: $385,151
• Average rent: $1,164 
• Monthly energy bill: $212.72
• Job market analysis: The job market is diverse, with major sectors like health care, life sciences and education. Key employers include Providence Health and Services and Gonzaga University. Spokane recorded an unemployment rate of 5.2% in December 2025. 
• Best for: Families, health care professionals and anyone seeking an affordable West Coast lifestyle with four-season recreation

8. Johnston, Pennsylvania

A city famous for its resilience and rich industrial history, Johnston is an incredibly affordable option in the Northeast. Nestled in the Allegheny Mountains, it boasts a tight-knit community feel and historic architecture. The city is known for the Johnston Flood Museum and its unique Inclined Plane, which offer a glimpse of its past while providing residents with an exceptionally low cost of living. 

Key details:

• Region: The Northeast
• Cost of living: 7% below the national average
• Median home price: $101,635
• Average rent: $919
• Monthly energy bill: $211.92
• Job market analysis: While historically a steel town, the economy has diversified into defense, technology and health care. Major employers include Lockheed Martin, Conemaugh Health System and various government contractors. The unemployment rate in the area sits at 4.4% as of December 2025.
• Best for: First-time homebuyer and retirees looking for a low cost of living and a quiet, community-focused lifestyle

9. Buffalo, New York

With its remarkable revitalization, Buffalo is a city rich in history, stunning architecture and a passionate community spirit. Known as the “City of Good Neighbors,” it boasts a vibrant waterfront, a world-class arts scene and a famous food culture. With four distinct seasons and proximity to Niagara Falls, it offers big-city amenities at a friendly, small-town price. 

Key details:

• Region: The Northeast
• Cost of living: 3% below the national average
• Median home price: $229,957
• Average rent: $1,207
• Monthly energy bill: $188.27
• Job market analysis: The economy focuses on health care, research and higher education, anchored by Buffalo Niagara Medical Campus. M&T Bank and Delaware North are also major private-sector employers. The city’s unemployment rate was 4% as of December 2025.
• Best for: Young professionals, families and foodies who want an affordable, up-and-coming city with four distinct seasons

How Does Affordability Vary by U.S. Region?

Based on the data listed in the cost of living index for 2025, here are the regional average cost of living indexes for each region:

• The Midwest: 92.15
• The South: 97.12
• The West: 113.59
• The Northeast: 116.5

In the Midwest, affordability is driven by abundant and inexpensive land for housing. It has economies historically based in manufacturing and agriculture rather than and high-wage, high-cost sectors. 

Meanwhile, the South has a traditionally low cost of living and low tax burdens. There’s also a trend of high population growth and corporate relocation, which is boosting costs in major hubs like Austin and Nashville. This helps other cities maintain affordability. 

The Northeast and the West have high costs due to intense housing demand and economies driven by high-paying industries like tech and finance. Mountains, oceans and other geographic constraints on development also contribute to their significant price tags. 

How to Choose the Cheapest City in the U.S. for You

To choose the cheapest city for you, match the location with your lifestyle and demographic. 

For Young Professionals and Millennials

The most affordable cities for millennials and young professionals are Wichita, Huntsville and Buffalo. Wichita offers numerous career opportunities alongside a vibrant arts scene, while Huntsville is a magnet for STEM specialists due to its high concentration of engineering and aerospace jobs. Buffalo is drawing young people with its revitalized city center and affordable amenities. 

For Remote Workers

Wichita and Brownsville are among the most affordable cities for remote workers. For those working from home, maximizing their savings is the ultimate goal. These cities offer some of the lowest housing costs in the nation, allowing home-based professionals to reduce their biggest expense and increase their savings rate. 

For Families

Beyond their low cost of living, Wichita, Enid, Buffalo and Spokane offer key family-friendly benefits. Wichita has a reputation for safe neighborhoods and good schools, while Enid has a tight-knit community and top-tier attractions for children. Buffalo and Spokane both offer a great balance of activities for families, community and affordability. 

For Retirees

Brownsville offers year-round warm weather and is in a state with no income tax. Another city that’s frequently cited as a top place to retire is Huntsville, due to its excellent health care systems, low property taxes and abundant recreational activities. For those prioritizing cities with the lowest cost of living, Johnston is an excellent choice. 

How Can You Calculate if a City Is Affordable for You?

Here’s a step-by-step financial tool to help you determine if a city falls within your budget. 

• Know your numbers: Calculate your current net monthly income and categorize your spending by housing, food, debt, wants and savings. 
• Use the 50/30/20 rule as a guideline: Designate 50% of your income for needs,  such as housing, utilities and food, and 30% for your hobbies and other wants. Set aside 20% for savings and debt repayment. 
• Run the comparison: Determine how your calculation would fare in the cities you’re considering living in. 

For example, consider the question, “What salary do you need to live comfortably in Decatur?” Sarah, a graphic designer from San Diego, CA, wants to move there and earns $85,000/year. 

Her housing costs could plummet from $2,800/month in San Diego to $800/month in Decatur for a similar apartment. This single change frees up an incredible $2,000/month in her budget. That’s an extra $24,000 per year that can be redirected to savings, travel or investments, dramatically accelerating her financial goals all without needing a raise. 

Frequently Asked Questions

Here are the answers to common questions about the best places to live on a budget in 2026.

What Makes These Cities the Cheapest in the U.S.?

The affordability of these cities typically depends on a combination of economic factors.

• Lower housing costs: This is usually due to more available land and a less competitive real estate market compared to dense coastal metros.
• Moderate salary levels: While wages may be lower in major hubs like New York or San Francisco, purchasing power is often higher in cities where basic expenses cost so much less. 
• Lower local taxes: Many of these cities are in states with lower property or income taxes. 
• Economic fundamentals: Their economies are often based on sectors like manufacturing, agriculture or logistics, which don’t drive up costs as intensely as large-scale tech or finance. 

Which States Have the Lowest Cost of Living?

Many of the most affordable places to live in the U.S. are in the South and Midwest, such as Oklahoma, Mississippi, Kansas, Alabama and Missouri. However, cheap places to live are available nationwide. States like Wyoming, Pennsylvania and New York are home to cities with a cost of living well below the national average.

Where Is the Cheapest Place to Live in America That’s Still Safe?

Between November 2024 and October 2025, violent crime decreased by 9.9% and property-related lawbreaking declined by 12%. However, “safe” is often subjective. While it can vary by neighborhood, many cities offer a great balance. 

Cities in the Midwest and parts of the South and Northeast often rank well for safety and affordability. For example, many of the cities on this list, such as Huntsville and Wichita, boast crime rates near or below the national average. 

What Are Affordable Cities With Good Job Markets?

Many low-cost-of-living areas have become hubs for specific high-growth industries. The key is to find a city with a strong job market that aligns with your career field. 

Huntsville is ideal for those seeking high-paying engineering work, while Wichita is ideal for anyone in aviation and manufacturing. Similarly, Buffalo has become a hub for health care and research, and Spokane boasts a strong job market for health and life sciences. 

Where Are Cheap Places to Live With Low Rent?

Nearly every city on this list offers average rents well below the national average. Cities like Decatur, Wichita and Johnston stand out for having exceptionally low rental costs. You can typically find two-bedroom apartments in many of these locations for around $1,000 to $1,200 a month, which is unheard of in most major U.S. cities. 

Is Now a Good Time to Buy a House in an Affordable City? 

For many aspiring homeowners, now can be an excellent time to consider buying, especially in an affordable city. Local market conditions vary, but the national trend is currently giving buyers more leverage than they’ve had in recent years. 

Experts predict the market will average around 4.6 months of supply. This means that purchasers may find less competition, have more room to negotiate prices and face less risk of sudden price hikes. 

Choose the Right Affordable City for You

The “perfect” city is a balance between financial data and personal priorities, like career goals, family needs and desired lifestyle. After making a list of the cities that have what you’re looking for, calculate each one’s cost of living based on factors, like health care, utilities and housing. Dive into resources about each place to start your journey to a more affordable life.