Pittsburgh, PA, is the most affordable big city in 2026, with a median home price of $250,000, which is more than $150,000 less than the national median.
Decatur, Illinois is the most affordable city in the U.S. News rankings. The median home value is about $89,855, and the cost of living is 90% of the national average. Three cities in Oklahoma (Enid, Edmond, and Norman) are in the top 10 most affordable, with median home values between $143,000 and $200,000.
Midwestern and Southern states are at the top of the list for affordability because they have lower property taxes, more land available, and cost of living indexes that are 10% to 30% lower than the national average.
The median household income in the U.S. was $83,730 in 2024. However, using the 50/30/20 budget rule, singles need $85,000 and families of four need almost $200,000 to live comfortably in big cities.
According to SmartAsset's 2025 study, housing costs are very different from one place to another. For example, in El Paso, TX, only 20.35% of household income goes to housing, while in Miami, FL, 36% of household income goes to housing.
Cost of living indexes use 100 as the national average. Cities with scores below 90 are thought to be very affordable, and some cities that are featured score as low as 35 to 70.
Iowa has four cities in the top 25 most affordable metros: Des Moines, Cedar Rapids, Ankeny, and Davenport. These cities have strong job markets in finance, insurance, and manufacturing.
Checkr's 2025 study found that Raleigh, NC; Des Moines, IA; and Omaha, NE are all emerging job markets. These cities are affordable and have a lot of job openings in healthcare, tech, and logistics.
Home prices in cities that are affordable have gone up slowly (3–6% per year) compared to coastal markets (10–15% per year). This makes them more appealing to first-time buyers and people who work from home.
Statista says that the median home price in the U.S. was $419,200 in the last three months of 2024 and will rise to $426,000 by the second quarter of 2026. This makes it harder and harder to find a place to live that doesn't cost too much. According to the U.S. News Best Places rankings, quality of life is now the most important thing for Americans who are thinking about moving. Affordability is now the second most important thing. This is because mortgage rates were about 6.81% in May 2025 and the median household income in the US was $83,730 in 2024.
The good news? There are still a lot of great places to live in the US that have low housing costs, safe neighborhoods, strong job markets, and active communities. These cities show that it's still possible to own a home in America if you know where to look. For instance, homes in Pittsburgh cost an average of $250,000, while homes in Decatur, Illinois cost less than $90,000.
This in-depth guide lists 30 of the least expensive places to live in 2026. It has information about the cost of living right now, the average home price, the income you need to live there, an analysis of the job market, and quality of life factors to help you decide where to move.
Understanding the Cost of Living Index in 2026
It's important to know how to measure affordability before you start looking at specific cities. The Council for Community and Economic Research (C2ER) and other groups put together the cost of living index. It uses 100 as the national average. Cities with scores below 100 are cheaper than average, and cities with scores above 100 are more expensive.
The index looks at six main categories of spending: housing (which is usually the biggest part, making up 30–40% of costs), groceries, utilities, transportation, healthcare, and other goods and services. Housing costs are the biggest factor in how affordable a place is, which is why cities with a lot of land and low property taxes are always at the top of the list.
The World Population Review's 2025 state rankings show that Mississippi has the lowest cost of living index at 83.3. Kansas comes in second with 86.5, and Alabama comes in third with 87.9. These states have housing costs that are much lower than the national average. For example, Mississippi's housing index is 66, which means that housing costs 34% less than the national average.
But you have to weigh low costs against the potential for high income. The median household income in Mississippi is $55,100, which is less than the national average of $83,730. The state also has a higher poverty rate of nearly 20%. Finding cities where low costs and good job opportunities are available is the key. SmartAsset calls this the "housing affordability sweet spot."
The 30 Most Affordable Places to Live in the US in 2026
1. Pittsburgh, Pennsylvania
Realtor.com research shows that Pittsburgh is the most affordable large housing market in 2026. The median listing price is $250,000, which is more than $150,000 less than the national median. Pittsburgh is the only big city where buying a home is cheaper than renting, with mortgage payments taking up only 27.4% of the median income.
The city's shift from an industrial powerhouse to a center for technology and healthcare has led to a wide range of job openings. UPMC (healthcare), Google (technology), and Carnegie Mellon University (education and research) are some of the biggest employers. The AI and robotics industry in the area is growing at an unprecedented rate, and by 2025, spending on AI research is expected to reach $1.5 billion.
Population: 2.4 million metro
Median Home: $250,000
Cost of Living: 88
Median Income: $68,000
Unemployment: 3.2%
2. Decatur, Illinois
Decatur ranks #1 in U.S. News' 2025-2026 Best Affordable Places to Live. This manufacturing and agriculture hub offers median home values around $89,855—among the lowest for mid-sized metros. The city's proximity to major highways and rail lines has attracted food processing giants like Archer Daniels Midland, creating stable employment. While Decatur's median income is below the national average, housing costs are so low that residents spend only 14% of annual income on homeownership.
Population: 92,200
Median Home: $89,855
Cost of Living: 90
Median Income: $49,714
Monthly Costs: $776
3. Enid, Oklahoma
Enid ranks #2 for affordability in U.S. News' overall Best Places rankings. Median rent of just $647 means residents spend only 12.50% of median household income on housing. The median home value of $143,305 is well under the national average. Enid's economy centers on energy, agriculture, and government services, with Vance Air Force Base as a major employer. The city features the state's only professional symphony and numerous public art installations.
Population: 50,763
Median Home: $143,305
Median Rent: $647
Median Income: $62,361
4. Fort Wayne, Indiana
Fort Wayne's cost of living sits 39% lower than the national average while offering diverse employment in manufacturing, healthcare, insurance, and defense. Major employers include Parkview Health System, General Motors, and Steel Dynamics. The city has experienced steady population growth and downtown revitalization, attracting young professionals seeking affordable homeownership without sacrificing urban amenities.
Population: 270,000+
Cost of Living: 39% below national
Median Home: ~$180,000
Major Industries: Manufacturing, healthcare
5. Des Moines, Iowa
Iowa's capital and financial services center is Des Moines. Housing costs are 23% lower than the national average, and the city has great jobs in finance, insurance, and data services. Principal Financial Group, Wellmark Blue Cross Blue Shield, and Casey's General Stores all have their main offices here. The city has the biggest state fair in the country and a busy farmers market in the downtown area.
Population: 296,200 metro
Cost of Living: 23% below national
Median Income: $85,731
Median Home: ~$240,000
6. Oklahoma City, Oklahoma
Oklahoma City has the conveniences of a big city but the low prices of a mid-sized city. As of August 2025, the median home sale price is $225,167, and more than half of homes sold for less than their asking price. The city has grown beyond just energy and now includes healthcare, technology, and aerospace. Some of the biggest employers are Devon Energy, Tinker Air Force Base, and OU Medical Center.
Population: 694,800
Median Home: $225,167
Housing Costs: 21% below national
Cost of Living: Among lowest in major cities
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Wichita is called the "Air Capital of the World" because its aerospace industry provides high-paying jobs and the cost of living is 11% lower than the national average. There are a lot of different neighborhoods in the city, as well as great parks like College Hill Park, which is 22 acres big. The Wichita Art Museum and Botanica Gardens are also cultural attractions. Spirit AeroSystems, Textron Aviation, and Koch Industries are some of the biggest employers.
Population: 389,000+
Cost of Living: 11% below national
Median Home: ~$190,000
Major Industry: Aerospace manufacturing
8. Green Bay, Wisconsin
Green Bay has a strong economy based on paper products, food processing, and healthcare, in addition to Lambeau Field and the Packers. The cost of living is 13% lower than the national average, and housing is the biggest way to save money. Bellin Health, Schreiber Foods, and Associated Bank are some of the biggest employers. The Fox River State Trail and Baird Creek Greenway are two great places to enjoy the outdoors in the city.
Population: 192,900
Cost of Living: 13% below national
Monthly Homeowner Costs: $798
Major Industries: Paper, food processing
9. Omaha, Nebraska
Omaha is cheap and has a lot of businesses, which is surprising. Berkshire Hathaway, owned by Warren Buffett, is based there, and it is a major center for healthcare, insurance, and logistics. Checkr's report from 2025 says that jobs are being created at a steady rate in business services, healthcare, and logistics. Some of the biggest employers are Berkshire Hathaway, Union Pacific, and Mutual of Omaha.
Population: 486,000+
Median Home: ~$230,000
Employment: Strong across multiple sectors
Cost of Living: Below national average
10. Cedar Rapids, Iowa
The schools in Cedar Rapids are great, the arts scene is thriving (The District is made up of Czech Village and New Bohemia), and housing costs 30% less than the national average. Two of the biggest employers are Collins Aerospace and Quaker Oats. The city rebuilt after the floods in 2008 and made the downtown area more lively.
Population: 173,200
Cost of Living: 30% below national
Median Income: $64,435
Monthly Costs: $835
11. Davenport, Iowa
People say this industrial river city has nice neighborhoods, a lot of jobs, and friendly people. Prices are lower than the average in the US, and there are many different kinds of homes to choose from. The Quad Cities metro area is close to Iowa City and Chicago and has fun things to do on the Mississippi River.
Population: 161,800
Median Home: ~$185,000
Cost of Living: 70
Monthly Costs: $904
12. West Des Moines, Iowa
Known across the country for having a lot of jobs and stores nearby. Both retirees and families like a safe place to live. Good schools and close to Des Moines job centers.
Population: 296,200
Median Income: $85,731
Monthly Costs: $1,211
Major Employers: Financial services, retail
13. Ankeny, Iowa
Small-town charm meets active lifestyle. Easy access to biking/walking trails, arts, music scene. Top-ranked schools and rapid growth make it attractive to young families.
Population: 300,600
Median Income: $103,578
Monthly Costs: $1,327
Percent Income on Housing: 13%
14. Ames, Iowa
Home to Iowa State University. Safe, clean college town with green spaces, outdoor recreation. Hosts Iowa State Fair and excellent downtown farmers market. Strong education sector employment.
Population: 253,300
Cost of Living: 10
Median Income: $52,565
Monthly Costs: $885
15. Fargo, North Dakota
Lots of outdoor activities, a good school system, and a friendly community. A strong economy and a thriving arts scene make it a good place for families. Sanford Health and Microsoft are two of the biggest employers.
Population: 257,500
Cost of Living: 50
Monthly Costs: $872
Median Income: $59,698
16. Columbia, Missouri
The "Athens of the West" boasts attractive architecture and modernized healthcare. College sports tailgating, clean streets, peaceful escape from larger cities. Home to University of Missouri.
Population: 271,800
Cost of Living: 00
Median Income: $58,067
Monthly Costs: $968
17. Peoria, Illinois
There are bars, restaurants, and parks that make it feel like a big suburb. The riverfront setting makes it more charming. A strong economy and homes that are easy to afford. Caterpillar and OSF Healthcare are two of the biggest employers.
Population: 151,400
Cost of Living: 60
Monthly Costs: $919
Median Income: $55,955
18. Lincoln, Nebraska
The capital of Nebraska is both affordable and charming. A mix of city and suburban living is appealing to a lot of people. There are cultural and recreational activities in this college town (University of Nebraska).
Population: 291,000+
Cost of Living: Below national average
Major Industries: Government, education, insurance
19. Springfield, Illinois
State capital with a lot of government jobs. There are historical sites related to Abraham Lincoln here. Affordable homes, good schools, and a welcoming environment for families. A lot of history and museums.
Population: 114,000+
Cost of Living: Below national average
Major Employers: State government, healthcare
20. Grand Rapids, Michigan
The Bureau of Labor Statistics says that a lot of jobs are being created. Strong history of making furniture, now moving into healthcare and education. The ArtPrize festival brings a lot of life to the arts scene.
Population: 201,000+
Major Employers: Spectrum Health, furniture manufacturers, Growing tech sector
21. Norman, Oklahoma
Located in the suburbs near Oklahoma University. Food, attractions, and outdoor activities are all reasonably priced. There are cultural events and sports venues that make it feel like a college town.
Population: 244,700
Cost of Living: 20
Median Income: $61,030
Monthly Costs: $1,020
22. Edmond, Oklahoma
Among nation's safest cities. Parks, outdoor facilities, top-notch schools. Historic downtown, minimal commute times. Highly educated population and strong sense of community.
Population: 345,100
Cost of Living: 20
Median Income: $102,896
Monthly Costs: $1,318
23. Broken Arrow, Oklahoma
Rated one of best places to live in America. Safe neighborhoods, high quality of life, fast-growing community. Broken Arrow Performing Arts Center draws crowds.
Population: 236,600
Cost of Living: 50
Median Income: $79,075
Monthly Costs: $1,212
24. Lawton, Oklahoma
Access to 19 parks, safe environment. Generally lower cost of living helps budget requirements. Fort Sill provides stable military employment.
Population: 121,100
Cost of Living: 40
Median Income: $50,969
Monthly Costs: $918
25. Tuscaloosa, Alabama
The University of Alabama is here. The best choice for young professionals. Parks, bars, and a great college football culture. Mercedes-Benz U.S. International and DCH Health System are two of the biggest employers.
Different neighborhoods and good places to eat. Good weather, lots of things to do, and a lively community. Home of the Masters Tournament. One of the best cities in Georgia for families.
Population: 202,596
Cost of Living: 60
Median Income: $49,838
Monthly Costs: $1,159
27. Memphis, Tennessee
The cost of living is 38% lower than the national average. The place where rock and roll and soul music started. FedEx, AutoZone, and St. Jude Children's Research Hospital are some of the biggest employers. The main attractions are Graceland and the Stax Museum. SmartAsset says that Memphis has the lowest average household income needed to raise a family comfortably.
Population: 633,000+
Cost of Living: 38% below national
Family Salary Needed: $182,400 (lowest study-wide)
28. McAllen, Texas
Located in Rio Grande Valley, 70 miles from Gulf Coast. Best for birdwatching in U.S. Highest quality of life ranking among most affordable places according to U.S. News. Third-lowest grocery costs nationwide.
Population: 144,628
Cost of Living: 9
Median Income: $59,255
29. Laredo, Texas
Southern border city connecting U.S. and Mexico via Rio Grande. One of busiest ports for international trade. Lake Casa Blanca International State Park nearby. Rich cultural heritage preserved in nearly 200-year-old Casa Ortiz.
Population: 256,842
Median Rent: $795
Median Home: $174,659
Median Income: $63,802
30. Huntsville, Alabama
The name "Rocket City" comes from NASA's ties to the area. The tech and aerospace industries are growing quickly, and housing is cheap. The U.S. Space & Rocket Center is a big draw. Brings together new ideas and Southern charm. NASA's Marshall Space Flight Center, Redstone Arsenal, and the growing tech sector are some of the biggest employers.
Population: 215,000+
Cost of Living: Below national average
Major Industries: Aerospace, defense, technology
Income Requirements: What You Really Need to Live Comfortably in 2026
To understand affordability, you need to look at how housing costs and income are related. The 28/36 rule is what financial advisors usually say: housing costs shouldn't be more than 28% of gross income, and total debt payments shouldn't be more than 36%. The 50/30/20 budget rule is a more recent framework. It says that 50% of your income should go to necessities (like housing), 30% to things you want to do, and 20% to savings. SmartAsset's 2025 analysis found that housing payments make up about 20.98% of the median household income in the US. This is well within the recommended range. But this national average hides a lot of differences between regions. In 47 of the 50 biggest cities, housing costs are higher than this comfortable level, and many cities go above the 28% mark.
Most Affordable Cities for Housing Burden
SmartAsset identified cities where residents spend the smallest percentage of income on housing: El Paso, TX leads at just 20.35% (median monthly cost $1,016, median income $59,932), followed by Louisville, KY and Albuquerque, NM (both 20.38%), Mesa, AZ (20.54%), and Indianapolis, IN (21.82%).
Compare these to expensive metros: Miami residents spend 36% of gross income on housing (median payment $2,000, median income $66,337). Raleigh, NC saw the highest year-over-year increase, with housing costs jumping from 21.58% to 23.83% of median income.
Living Wage Requirements by City Type
Upgraded Points' 2025 analysis using MIT Living Wage Calculator data reveals dramatic differences: For single adults, most affordable cities require $85,000-$105,000 (Indianapolis $85,197, Memphis $87,200, Omaha $89,500) versus expensive metros requiring $150,000+ (San Jose $163,045, San Francisco $148,441). For families of four, affordable cities need $180,000-$230,000 versus $400,000+ on coasts.
Job Markets and Economic Opportunities in Affordable Cities
Affordability doesn't mean much if there aren't jobs available. Many cities that are cheap to live in have strong job markets with a wide range of industries and pay that is competitive with the cost of living. Checkr's 2025 analysis found that Des Moines (finance, insurance, data services), Omaha (healthcare, logistics, business services), Kansas City (tech, healthcare, entrepreneurship), and Indianapolis (pharmaceuticals, manufacturing, healthcare) are all affordable cities with great job markets. Cities that are cheap have strong industry specializations. For example, Pittsburgh, Indianapolis, Omaha, and Memphis are known for healthcare and life sciences; Des Moines and Omaha are known for finance and insurance; Pittsburgh AI/robotics and Kansas City startups are known for technology and innovation; Wichita, Fort Wayne, and Huntsville are known for manufacturing and aerospace; Memphis, Oklahoma City, and Kansas City are known for logistics and distribution; and Oklahoma City and Tulsa are known for energy.
Beyond Housing Costs: Other Critical Factors to Consider
Sustainable relocation requires evaluating multiple quality-of-life factors: Taxation (states with no income tax vs. high property taxes), Safety (crime rates vary significantly), Climate (four-season vs. milder winters), Education (school quality for families), Healthcare (access to major medical centers), and Transportation (most affordable cities are car-dependent but offer shorter commutes).
Property tax examples: A $200,000 home costs $820 annually in Alabama (0.41% rate) versus $3,200 in Texas (1.60% rate)—nearly four times higher despite Texas having no state income tax.
Real Estate Market Trends: What's Happening in 2026
Construction Coverage says that home prices in the U.S. have gone up 177% since 2000, but the median household income has only gone up 92%. In real terms, incomes only went up 8.5%, but home prices went up 56%, making it harder than ever to afford a home.
But cities that were affordable saw less of an increase in value. Prices for homes in Pittsburgh went up only 6% over five years, while prices in Sun Belt markets went up by more than 10%. Realtor.com says that prices will go up by 2.2% across the country in 2026.
However, 22 cities may see prices go down a little as more homes become available. Mortgage rates are still high, at 6.81% in May 2025 compared to 2.65% in January 2021. But the most important thing is the absolute price of homes: A $250,000 home (the median price in Pittsburgh) costs about $1,640 a month in principal and interest, while a $425,000 home (the national median) costs $2,750 a month. That's a $1,110 monthly difference, or $13,320 a year. To understand how affordable something is, you need to look at the link between housing costs and income. Most financial advisors say that the 28/36 rule is a good one to follow. This means that housing costs shouldn't be more than 28% of gross income and total debt payments shouldn't be more than 36%. The 50/30/20 budget rule is a newer way to look at things. It says that half of your money should go to things you need, like housing, 30% to things you want to do, and 20% to savings. SmartAsset's 2025 study found that housing costs make up about 20.98% of the median household income in the US. This is well within the range that is suggested. But there are a lot of differences between regions that this national average doesn't show. In 47 of the 50 largest cities, housing costs are higher than this comfortable percentage, and in many of them, they are higher than the 28% mark.
SmartAsset found the cities where people spend the least amount of their income on housing: El Paso, TX has the highest rate at 20.35% (median monthly cost $1,016, median income $59,932). Louisville, KY and Albuquerque, NM are next at 20.38%, followed by Mesa, AZ (20.54%) and Indianapolis, IN (21.82%).
Compare these to high-cost cities: The average payment for housing in Miami is $2,000, and the average income is $66,337. Miami residents spend 36% of their gross income on housing. Raleigh, NC had the biggest year-over-year jump, with housing costs going from 21.58% to 23.83% of median income.
Living Wage Requirements by City Type
Upgraded Points' 2025 analysis using MIT Living Wage Calculator data shows big differences: Most affordable cities for single adults need $85,000 to $105,000 (Indianapolis $85,197, Memphis $87,200, Omaha $89,500), while expensive metros need $150,000 or more (San Jose $163,045, San Francisco $148,441). For families of four, cities that are cheap need between $180,000 and $230,000, while cities on the coasts need more than $400,000.
Job Markets and Chances to Make Money in Cities That Are Cheap to Live In
You can't afford something if you can't find a job. Many cities that are cheap to live in have strong job markets with a wide range of industries and pay that is competitive with the cost of living. Checkr's 2025 analysis found that Des Moines (finance, insurance, data services), Omaha (healthcare, logistics, business services), Kansas City (tech, healthcare, entrepreneurship), and Indianapolis (pharmaceuticals, manufacturing, healthcare) are all affordable cities with great job markets.
Industry Specialties in Affordable Cities
Affordable cities have strong industry specialties. For example, Pittsburgh, Indianapolis, Omaha, and Memphis are known for healthcare and life sciences; Des Moines and Omaha are known for finance and insurance; Pittsburgh AI/robotics and Kansas City startups are known for technology and innovation; Wichita, Fort Wayne, and Huntsville are known for manufacturing and aerospace; Memphis, Oklahoma City, and Kansas City are known for logistics and distribution; and Oklahoma City and Tulsa are known for energy.
Other Important Things to Think About Besides Housing Costs
To move in a way that is good for the environment, you need to think about a lot of quality-of-life factors: Taxation (some states have no income tax and others have high property taxes), Safety (crime rates vary a lot), Climate (four seasons vs. milder winters), Education (school quality for families), Healthcare (access to major medical centers), and Transportation (the cheapest cities are car-dependent but have shorter commutes).
Examples of property taxes: In Alabama, a $200,000 home costs $820 a year (0.41% rate), while in Texas, it costs $3,200 a year (1.60% rate). This is almost four times more, even though Texas has no state income tax.
What's Going On in the Real Estate Market in 2026?
Construction Coverage says that home prices in the U.S. have gone up 177% since 2000, but the median household income has only gone up 92%. In real terms, incomes only went up 8.5%, but home prices went up 56%, making it harder than ever to afford a home.
But cities that were affordable saw less of an increase in value. Prices for homes in Pittsburgh went up only 6% over five years, while prices in Sun Belt markets went up by more than 10%. Realtor.com says that prices will go up by 2.2% across the country in 2026. However, 22 cities may see prices go down a little as more homes become available.
Mortgage rates are still high, at 6.81% in May 2025 compared to 2.65% in January 2021. But the most important thing is the absolute price of homes: A $250,000 home in Pittsburgh (the median) costs about $1,640 a month in principal and interest, while a $425,000 home (the national median) costs $2,750 a month. That's a $1,110 monthly difference, or $13,320 a year.
The Bottom Line
You can still own a home and live well in the 30 cities this guide covers in 2026. Homes in these cities cost a lot less than the average price of a home in the U.S., which is $419,200. The average home price in Pittsburgh is $250,000, but in Decatur, it's less than $90,000. This means you won't have to worry as much about money, your monthly payments will be lower, and your equity will grow faster. You need to make sure that your priorities match the city's traits if you want to be successful. You need to make sure that your long-term goals match market trends, your family's needs match schools and safety, your career goals match the job market in your area, and your lifestyle choices match the climate and culture. All of the cities on this list are in the Midwest and South. They all have a lot of options, and each one has its own mix of community, cost, and chance. In 2026, first-time buyers, families with kids, people who work from home, and retirees will be able to buy homes in markets that are affordable. In these cities, mortgage rates are stabilizing, the number of homes for sale is rising, and prices are staying reasonable. Now might be the best time to take action and reach your goal of owning a home, which seems impossible in cities with high prices.
Frequently Asked Questions
According to U.S. News' rankings for 2025-2026, Decatur, Illinois is the best place to live. The median home price is about $89,855, and the overall cost of living is 90% of the national average. But "cheapest" depends on the metric. For example, Flint, Michigan has the lowest home prices per square foot ($61), while Anniston, Alabama has the lowest median rent ($513). It depends on whether you care more about rent, the price of buying a home, or the total cost of living.
There are a lot of different income requirements. SmartAsset's 2025 study says that single adults need about $85,000–$105,000 in affordable cities in the Midwest and South, but more than $150,000 in coastal metros. Affordable cities cost between $180,000 and $230,000 for families of four, while coastal cities cost more than $400,000. The national median household income of $83,730 is enough to live comfortably in most affordable cities, but not in expensive ones.
Many cities that are cheap have strong job markets with more and more opportunities. Checkr's 2025 report shows that Des Moines (finance/insurance), Omaha (healthcare/logistics), Indianapolis (pharma/manufacturing), and Pittsburgh (AI/robotics/healthcare) are all cities where jobs are growing quickly. Cities like Green Bay and Des Moines have unemployment rates that are the same as or lower than the national average (2.8%). For many jobs, where you work is less important now that you can work from home.
The cost of living index looks at a wide range of costs, including housing, food, utilities, transportation, healthcare, and other costs. It uses 100 as the national baseline. Cities with less than 100 people are cheaper. The median home price is one number that shows the middle price of homes that have been sold. If other costs are high, a city can have low median home prices but a high cost of living. Look at both metrics and income levels to get the whole picture.
Not always—quality of life is different for everyone and has many parts. A lot of cheap cities do well on U.S. News' quality of life scales. Cities like Pittsburgh, Des Moines, and Green Bay have cultural attractions, professional sports, outdoor activities, and strong ties to the community. Trade-offs usually mean fewer entertainment options than in big cities, less diversity, and fewer people to date. But many people who live there say they are less stressed, have shorter commutes, and have a better work-life balance.
There is a wide range in property taxes. The average home value in Alabama is only 0.41%, but in Texas it is 1.60%. This means $820 a year in Alabama for a $200,000 home and $3,200 a year in Texas, which is almost four times as much. Property taxes are fairly high in Iowa (1.54%), Illinois (2.16%), and Pennsylvania (1.50%), but they are still low in Oklahoma (0.87%) and Arkansas (0.61%). Always look up both the property tax rates and the ways that assessments are done in the cities you want to move to.
Most affordable cities saw moderate price increases of 3–6% per year over five years, while boomtowns saw price increases of 10% or more. Realtor.com says that prices will go up 2.2% across the country in 2026, but 22 cities may see small drops. Pittsburgh's prices went up only 6% over five years, but Des Moines and Omaha's prices went up steadily but not too much, by 15–25%. This moderate growth gives people a chance to buy homes because prices stay low and they build up equity.
Yes, but there are fewer remote jobs than there were at the height of the pandemic. Indeed Hiring Lab says that the number of remote job postings fell from 10.4% in February 2022 to 7.8% in October 2024. However, they are still higher than they were before the pandemic. Most remote jobs are in the fields of technology, finance, marketing, and the arts. Moving to a city with a low cost of living while keeping a high-paying remote job in a big city has a lot of benefits. For example, a $120,000 salary in San Francisco has the same buying power as $185,000+ in Des Moines or Pittsburgh.
Statista says that the median home price in the U.S. was $419,200 in the last three months of 2024 and will rise to $426,000 by the second quarter of 2026. This makes it harder and harder to find a place to live that doesn't cost too much. According to the U.S. News Best Places rankings, quality of life is now the most important thing for Americans who are thinking about moving. Affordability is now the second most important thing. This is because mortgage rates were about 6.81% in May 2025 and the median household income in the US was $83,730 in 2024.
The good news? There are still a lot of great places to live in the US that have low housing costs, safe neighborhoods, strong job markets, and active communities. These cities show that it's still possible to own a home in America if you know where to look. For instance, homes in Pittsburgh cost an average of $250,000, while homes in Decatur, Illinois cost less than $90,000.
This in-depth guide lists 30 of the least expensive places to live in 2026. It has information about the cost of living right now, the average home price, the income you need to live there, an analysis of the job market, and quality of life factors to help you decide where to move.
Understanding the Cost of Living Index in 2026
It's important to know how to measure affordability before you start looking at specific cities. The Council for Community and Economic Research (C2ER) and other groups put together the cost of living index. It uses 100 as the national average. Cities with scores below 100 are cheaper than average, and cities with scores above 100 are more expensive.
The index looks at six main categories of spending: housing (which is usually the biggest part, making up 30–40% of costs), groceries, utilities, transportation, healthcare, and other goods and services. Housing costs are the biggest factor in how affordable a place is, which is why cities with a lot of land and low property taxes are always at the top of the list.
The World Population Review's 2025 state rankings show that Mississippi has the lowest cost of living index at 83.3. Kansas comes in second with 86.5, and Alabama comes in third with 87.9. These states have housing costs that are much lower than the national average. For example, Mississippi's housing index is 66, which means that housing costs 34% less than the national average.
But you have to weigh low costs against the potential for high income. The median household income in Mississippi is $55,100, which is less than the national average of $83,730. The state also has a higher poverty rate of nearly 20%. Finding cities where low costs and good job opportunities are available is the key. SmartAsset calls this the "housing affordability sweet spot."
The 30 Most Affordable Places to Live in the US in 2026
1. Pittsburgh, Pennsylvania
Realtor.com research shows that Pittsburgh is the most affordable large housing market in 2026. The median listing price is $250,000, which is more than $150,000 less than the national median. Pittsburgh is the only big city where buying a home is cheaper than renting, with mortgage payments taking up only 27.4% of the median income.
The city's shift from an industrial powerhouse to a center for technology and healthcare has led to a wide range of job openings. UPMC (healthcare), Google (technology), and Carnegie Mellon University (education and research) are some of the biggest employers. The AI and robotics industry in the area is growing at an unprecedented rate, and by 2025, spending on AI research is expected to reach $1.5 billion.
Population: 2.4 million metro
Median Home: $250,000
Cost of Living: 88
Median Income: $68,000
Unemployment: 3.2%
2. Decatur, Illinois
Decatur ranks #1 in U.S. News' 2025-2026 Best Affordable Places to Live. This manufacturing and agriculture hub offers median home values around $89,855—among the lowest for mid-sized metros. The city's proximity to major highways and rail lines has attracted food processing giants like Archer Daniels Midland, creating stable employment. While Decatur's median income is below the national average, housing costs are so low that residents spend only 14% of annual income on homeownership.
Population: 92,200
Median Home: $89,855
Cost of Living: 90
Median Income: $49,714
Monthly Costs: $776
3. Enid, Oklahoma
Enid ranks #2 for affordability in U.S. News' overall Best Places rankings. Median rent of just $647 means residents spend only 12.50% of median household income on housing. The median home value of $143,305 is well under the national average. Enid's economy centers on energy, agriculture, and government services, with Vance Air Force Base as a major employer. The city features the state's only professional symphony and numerous public art installations.
Population: 50,763
Median Home: $143,305
Median Rent: $647
Median Income: $62,361
4. Fort Wayne, Indiana
Fort Wayne's cost of living sits 39% lower than the national average while offering diverse employment in manufacturing, healthcare, insurance, and defense. Major employers include Parkview Health System, General Motors, and Steel Dynamics. The city has experienced steady population growth and downtown revitalization, attracting young professionals seeking affordable homeownership without sacrificing urban amenities.
Population: 270,000+
Cost of Living: 39% below national
Median Home: ~$180,000
Major Industries: Manufacturing, healthcare
5. Des Moines, Iowa
Iowa's capital and financial services center is Des Moines. Housing costs are 23% lower than the national average, and the city has great jobs in finance, insurance, and data services. Principal Financial Group, Wellmark Blue Cross Blue Shield, and Casey's General Stores all have their main offices here. The city has the biggest state fair in the country and a busy farmers market in the downtown area.
Population: 296,200 metro
Cost of Living: 23% below national
Median Income: $85,731
Median Home: ~$240,000
6. Oklahoma City, Oklahoma
Oklahoma City has the conveniences of a big city but the low prices of a mid-sized city. As of August 2025, the median home sale price is $225,167, and more than half of homes sold for less than their asking price. The city has grown beyond just energy and now includes healthcare, technology, and aerospace. Some of the biggest employers are Devon Energy, Tinker Air Force Base, and OU Medical Center.
Population: 694,800
Median Home: $225,167
Housing Costs: 21% below national
Cost of Living: Among lowest in major cities
7. Wichita, Kansas
Wichita is called the "Air Capital of the World" because its aerospace industry provides high-paying jobs and the cost of living is 11% lower than the national average. There are a lot of different neighborhoods in the city, as well as great parks like College Hill Park, which is 22 acres big. The Wichita Art Museum and Botanica Gardens are also cultural attractions. Spirit AeroSystems, Textron Aviation, and Koch Industries are some of the biggest employers.
Population: 389,000+
Cost of Living: 11% below national
Median Home: ~$190,000
Major Industry: Aerospace manufacturing
8. Green Bay, Wisconsin
Green Bay has a strong economy based on paper products, food processing, and healthcare, in addition to Lambeau Field and the Packers. The cost of living is 13% lower than the national average, and housing is the biggest way to save money. Bellin Health, Schreiber Foods, and Associated Bank are some of the biggest employers. The Fox River State Trail and Baird Creek Greenway are two great places to enjoy the outdoors in the city.
Population: 192,900
Cost of Living: 13% below national
Monthly Homeowner Costs: $798
Major Industries: Paper, food processing
9. Omaha, Nebraska
Omaha is cheap and has a lot of businesses, which is surprising. Berkshire Hathaway, owned by Warren Buffett, is based there, and it is a major center for healthcare, insurance, and logistics. Checkr's report from 2025 says that jobs are being created at a steady rate in business services, healthcare, and logistics. Some of the biggest employers are Berkshire Hathaway, Union Pacific, and Mutual of Omaha.
Population: 486,000+
Median Home: ~$230,000
Employment: Strong across multiple sectors
Cost of Living: Below national average
10. Cedar Rapids, Iowa
The schools in Cedar Rapids are great, the arts scene is thriving (The District is made up of Czech Village and New Bohemia), and housing costs 30% less than the national average. Two of the biggest employers are Collins Aerospace and Quaker Oats. The city rebuilt after the floods in 2008 and made the downtown area more lively.
Population: 173,200
Cost of Living: 30% below national
Median Income: $64,435
Monthly Costs: $835
11. Davenport, Iowa
People say this industrial river city has nice neighborhoods, a lot of jobs, and friendly people. Prices are lower than the average in the US, and there are many different kinds of homes to choose from. The Quad Cities metro area is close to Iowa City and Chicago and has fun things to do on the Mississippi River.
Population: 161,800
Median Home: ~$185,000
Cost of Living: 70
Monthly Costs: $904
12. West Des Moines, Iowa
Known across the country for having a lot of jobs and stores nearby. Both retirees and families like a safe place to live. Good schools and close to Des Moines job centers.
Population: 296,200
Median Income: $85,731
Monthly Costs: $1,211
Major Employers: Financial services, retail
13. Ankeny, Iowa
Small-town charm meets active lifestyle. Easy access to biking/walking trails, arts, music scene. Top-ranked schools and rapid growth make it attractive to young families.
Population: 300,600
Median Income: $103,578
Monthly Costs: $1,327
Percent Income on Housing: 13%
14. Ames, Iowa
Home to Iowa State University. Safe, clean college town with green spaces, outdoor recreation. Hosts Iowa State Fair and excellent downtown farmers market. Strong education sector employment.
Population: 253,300
Cost of Living: 10
Median Income: $52,565
Monthly Costs: $885
15. Fargo, North Dakota
Lots of outdoor activities, a good school system, and a friendly community. A strong economy and a thriving arts scene make it a good place for families. Sanford Health and Microsoft are two of the biggest employers.
Population: 257,500
Cost of Living: 50
Monthly Costs: $872
Median Income: $59,698
16. Columbia, Missouri
The "Athens of the West" boasts attractive architecture and modernized healthcare. College sports tailgating, clean streets, peaceful escape from larger cities. Home to University of Missouri.
Population: 271,800
Cost of Living: 00
Median Income: $58,067
Monthly Costs: $968
17. Peoria, Illinois
There are bars, restaurants, and parks that make it feel like a big suburb. The riverfront setting makes it more charming. A strong economy and homes that are easy to afford. Caterpillar and OSF Healthcare are two of the biggest employers.
Population: 151,400
Cost of Living: 60
Monthly Costs: $919
Median Income: $55,955
18. Lincoln, Nebraska
The capital of Nebraska is both affordable and charming. A mix of city and suburban living is appealing to a lot of people. There are cultural and recreational activities in this college town (University of Nebraska).
Population: 291,000+
Cost of Living: Below national average
Major Industries: Government, education, insurance
19. Springfield, Illinois
State capital with a lot of government jobs. There are historical sites related to Abraham Lincoln here. Affordable homes, good schools, and a welcoming environment for families. A lot of history and museums.
Population: 114,000+
Cost of Living: Below national average
Major Employers: State government, healthcare
20. Grand Rapids, Michigan
The Bureau of Labor Statistics says that a lot of jobs are being created. Strong history of making furniture, now moving into healthcare and education. The ArtPrize festival brings a lot of life to the arts scene.
Population: 201,000+
Major Employers: Spectrum Health, furniture manufacturers, Growing tech sector
21. Norman, Oklahoma
Located in the suburbs near Oklahoma University. Food, attractions, and outdoor activities are all reasonably priced. There are cultural events and sports venues that make it feel like a college town.
Population: 244,700
Cost of Living: 20
Median Income: $61,030
Monthly Costs: $1,020
22. Edmond, Oklahoma
Among nation's safest cities. Parks, outdoor facilities, top-notch schools. Historic downtown, minimal commute times. Highly educated population and strong sense of community.
Population: 345,100
Cost of Living: 20
Median Income: $102,896
Monthly Costs: $1,318
23. Broken Arrow, Oklahoma
Rated one of best places to live in America. Safe neighborhoods, high quality of life, fast-growing community. Broken Arrow Performing Arts Center draws crowds.
Population: 236,600
Cost of Living: 50
Median Income: $79,075
Monthly Costs: $1,212
24. Lawton, Oklahoma
Access to 19 parks, safe environment. Generally lower cost of living helps budget requirements. Fort Sill provides stable military employment.
Population: 121,100
Cost of Living: 40
Median Income: $50,969
Monthly Costs: $918
25. Tuscaloosa, Alabama
The University of Alabama is here. The best choice for young professionals. Parks, bars, and a great college football culture. Mercedes-Benz U.S. International and DCH Health System are two of the biggest employers.
Population: 297,600
Cost of Living: 10
Median Income: $49,005
Monthly Costs: $955
26. Augusta, Georgia
Different neighborhoods and good places to eat. Good weather, lots of things to do, and a lively community. Home of the Masters Tournament. One of the best cities in Georgia for families.
Population: 202,596
Cost of Living: 60
Median Income: $49,838
Monthly Costs: $1,159
27. Memphis, Tennessee
The cost of living is 38% lower than the national average. The place where rock and roll and soul music started. FedEx, AutoZone, and St. Jude Children's Research Hospital are some of the biggest employers. The main attractions are Graceland and the Stax Museum. SmartAsset says that Memphis has the lowest average household income needed to raise a family comfortably.
Population: 633,000+
Cost of Living: 38% below national
Family Salary Needed: $182,400 (lowest study-wide)
28. McAllen, Texas
Located in Rio Grande Valley, 70 miles from Gulf Coast. Best for birdwatching in U.S. Highest quality of life ranking among most affordable places according to U.S. News. Third-lowest grocery costs nationwide.
Population: 144,628
Cost of Living: 9
Median Income: $59,255
29. Laredo, Texas
Southern border city connecting U.S. and Mexico via Rio Grande. One of busiest ports for international trade. Lake Casa Blanca International State Park nearby. Rich cultural heritage preserved in nearly 200-year-old Casa Ortiz.
Population: 256,842
Median Rent: $795
Median Home: $174,659
Median Income: $63,802
30. Huntsville, Alabama
The name "Rocket City" comes from NASA's ties to the area. The tech and aerospace industries are growing quickly, and housing is cheap. The U.S. Space & Rocket Center is a big draw. Brings together new ideas and Southern charm. NASA's Marshall Space Flight Center, Redstone Arsenal, and the growing tech sector are some of the biggest employers.
Population: 215,000+
Cost of Living: Below national average
Major Industries: Aerospace, defense, technology
Income Requirements: What You Really Need to Live Comfortably in 2026
To understand affordability, you need to look at how housing costs and income are related. The 28/36 rule is what financial advisors usually say: housing costs shouldn't be more than 28% of gross income, and total debt payments shouldn't be more than 36%. The 50/30/20 budget rule is a more recent framework. It says that 50% of your income should go to necessities (like housing), 30% to things you want to do, and 20% to savings.
SmartAsset's 2025 analysis found that housing payments make up about 20.98% of the median household income in the US. This is well within the recommended range. But this national average hides a lot of differences between regions. In 47 of the 50 biggest cities, housing costs are higher than this comfortable level, and many cities go above the 28% mark.
Most Affordable Cities for Housing Burden
SmartAsset identified cities where residents spend the smallest percentage of income on housing: El Paso, TX leads at just 20.35% (median monthly cost $1,016, median income $59,932), followed by Louisville, KY and Albuquerque, NM (both 20.38%), Mesa, AZ (20.54%), and Indianapolis, IN (21.82%).
Compare these to expensive metros: Miami residents spend 36% of gross income on housing (median payment $2,000, median income $66,337). Raleigh, NC saw the highest year-over-year increase, with housing costs jumping from 21.58% to 23.83% of median income.
Living Wage Requirements by City Type
Upgraded Points' 2025 analysis using MIT Living Wage Calculator data reveals dramatic differences: For single adults, most affordable cities require $85,000-$105,000 (Indianapolis $85,197, Memphis $87,200, Omaha $89,500) versus expensive metros requiring $150,000+ (San Jose $163,045, San Francisco $148,441). For families of four, affordable cities need $180,000-$230,000 versus $400,000+ on coasts.
Job Markets and Economic Opportunities in Affordable Cities
Affordability doesn't mean much if there aren't jobs available. Many cities that are cheap to live in have strong job markets with a wide range of industries and pay that is competitive with the cost of living. Checkr's 2025 analysis found that Des Moines (finance, insurance, data services), Omaha (healthcare, logistics, business services), Kansas City (tech, healthcare, entrepreneurship), and Indianapolis (pharmaceuticals, manufacturing, healthcare) are all affordable cities with great job markets.
Cities that are cheap have strong industry specializations. For example, Pittsburgh, Indianapolis, Omaha, and Memphis are known for healthcare and life sciences; Des Moines and Omaha are known for finance and insurance; Pittsburgh AI/robotics and Kansas City startups are known for technology and innovation; Wichita, Fort Wayne, and Huntsville are known for manufacturing and aerospace; Memphis, Oklahoma City, and Kansas City are known for logistics and distribution; and Oklahoma City and Tulsa are known for energy.
Beyond Housing Costs: Other Critical Factors to Consider
Sustainable relocation requires evaluating multiple quality-of-life factors: Taxation (states with no income tax vs. high property taxes), Safety (crime rates vary significantly), Climate (four-season vs. milder winters), Education (school quality for families), Healthcare (access to major medical centers), and Transportation (most affordable cities are car-dependent but offer shorter commutes).
Property tax examples: A $200,000 home costs $820 annually in Alabama (0.41% rate) versus $3,200 in Texas (1.60% rate)—nearly four times higher despite Texas having no state income tax.
Real Estate Market Trends: What's Happening in 2026
Construction Coverage says that home prices in the U.S. have gone up 177% since 2000, but the median household income has only gone up 92%. In real terms, incomes only went up 8.5%, but home prices went up 56%, making it harder than ever to afford a home.
But cities that were affordable saw less of an increase in value. Prices for homes in Pittsburgh went up only 6% over five years, while prices in Sun Belt markets went up by more than 10%. Realtor.com says that prices will go up by 2.2% across the country in 2026.
However, 22 cities may see prices go down a little as more homes become available.
Mortgage rates are still high, at 6.81% in May 2025 compared to 2.65% in January 2021. But the most important thing is the absolute price of homes: A $250,000 home (the median price in Pittsburgh) costs about $1,640 a month in principal and interest, while a $425,000 home (the national median) costs $2,750 a month. That's a $1,110 monthly difference, or $13,320 a year.
To understand how affordable something is, you need to look at the link between housing costs and income. Most financial advisors say that the 28/36 rule is a good one to follow. This means that housing costs shouldn't be more than 28% of gross income and total debt payments shouldn't be more than 36%. The 50/30/20 budget rule is a newer way to look at things. It says that half of your money should go to things you need, like housing, 30% to things you want to do, and 20% to savings.
SmartAsset's 2025 study found that housing costs make up about 20.98% of the median household income in the US. This is well within the range that is suggested. But there are a lot of differences between regions that this national average doesn't show. In 47 of the 50 largest cities, housing costs are higher than this comfortable percentage, and in many of them, they are higher than the 28% mark.
Most Affordable Cities for Housing Costs
SmartAsset found the cities where people spend the least amount of their income on housing: El Paso, TX has the highest rate at 20.35% (median monthly cost $1,016, median income $59,932). Louisville, KY and Albuquerque, NM are next at 20.38%, followed by Mesa, AZ (20.54%) and Indianapolis, IN (21.82%).
Compare these to high-cost cities: The average payment for housing in Miami is $2,000, and the average income is $66,337. Miami residents spend 36% of their gross income on housing. Raleigh, NC had the biggest year-over-year jump, with housing costs going from 21.58% to 23.83% of median income.
Living Wage Requirements by City Type
Upgraded Points' 2025 analysis using MIT Living Wage Calculator data shows big differences: Most affordable cities for single adults need $85,000 to $105,000 (Indianapolis $85,197, Memphis $87,200, Omaha $89,500), while expensive metros need $150,000 or more (San Jose $163,045, San Francisco $148,441). For families of four, cities that are cheap need between $180,000 and $230,000, while cities on the coasts need more than $400,000.
Job Markets and Chances to Make Money in Cities That Are Cheap to Live In
You can't afford something if you can't find a job. Many cities that are cheap to live in have strong job markets with a wide range of industries and pay that is competitive with the cost of living. Checkr's 2025 analysis found that Des Moines (finance, insurance, data services), Omaha (healthcare, logistics, business services), Kansas City (tech, healthcare, entrepreneurship), and Indianapolis (pharmaceuticals, manufacturing, healthcare) are all affordable cities with great job markets.
Industry Specialties in Affordable Cities
Affordable cities have strong industry specialties. For example, Pittsburgh, Indianapolis, Omaha, and Memphis are known for healthcare and life sciences; Des Moines and Omaha are known for finance and insurance; Pittsburgh AI/robotics and Kansas City startups are known for technology and innovation; Wichita, Fort Wayne, and Huntsville are known for manufacturing and aerospace; Memphis, Oklahoma City, and Kansas City are known for logistics and distribution; and Oklahoma City and Tulsa are known for energy.
Other Important Things to Think About Besides Housing Costs
To move in a way that is good for the environment, you need to think about a lot of quality-of-life factors: Taxation (some states have no income tax and others have high property taxes), Safety (crime rates vary a lot), Climate (four seasons vs. milder winters), Education (school quality for families), Healthcare (access to major medical centers), and Transportation (the cheapest cities are car-dependent but have shorter commutes).
Examples of property taxes: In Alabama, a $200,000 home costs $820 a year (0.41% rate), while in Texas, it costs $3,200 a year (1.60% rate). This is almost four times more, even though Texas has no state income tax.
What's Going On in the Real Estate Market in 2026?
Construction Coverage says that home prices in the U.S. have gone up 177% since 2000, but the median household income has only gone up 92%. In real terms, incomes only went up 8.5%, but home prices went up 56%, making it harder than ever to afford a home.
But cities that were affordable saw less of an increase in value. Prices for homes in Pittsburgh went up only 6% over five years, while prices in Sun Belt markets went up by more than 10%. Realtor.com says that prices will go up by 2.2% across the country in 2026. However, 22 cities may see prices go down a little as more homes become available.
Mortgage rates are still high, at 6.81% in May 2025 compared to 2.65% in January 2021. But the most important thing is the absolute price of homes: A $250,000 home in Pittsburgh (the median) costs about $1,640 a month in principal and interest, while a $425,000 home (the national median) costs $2,750 a month. That's a $1,110 monthly difference, or $13,320 a year.
The Bottom Line
You can still own a home and live well in the 30 cities this guide covers in 2026. Homes in these cities cost a lot less than the average price of a home in the U.S., which is $419,200. The average home price in Pittsburgh is $250,000, but in Decatur, it's less than $90,000. This means you won't have to worry as much about money, your monthly payments will be lower, and your equity will grow faster.
You need to make sure that your priorities match the city's traits if you want to be successful. You need to make sure that your long-term goals match market trends, your family's needs match schools and safety, your career goals match the job market in your area, and your lifestyle choices match the climate and culture. All of the cities on this list are in the Midwest and South. They all have a lot of options, and each one has its own mix of community, cost, and chance.
In 2026, first-time buyers, families with kids, people who work from home, and retirees will be able to buy homes in markets that are affordable. In these cities, mortgage rates are stabilizing, the number of homes for sale is rising, and prices are staying reasonable. Now might be the best time to take action and reach your goal of owning a home, which seems impossible in cities with high prices.
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