Cheapest States to Live In (2026): Ranked by Housing
The cheapest states to live in for 2026, measured by housing costs, are West Virginia, Mississippi and Iowa. West Virginia ranks first with a typical home value of $191,271 and typical rent of $1,062 a month, against $364,413 and $1,563 in the median state. Mississippi ($193,236 home value, $1,177 rent) and Iowa ($246,756, $1,075) follow, and California and Hawaii sit at the opposite end, with housing costs more than twice the national typical level.
This ranking compares 51 jurisdictions (the 50 states plus the District of Columbia) on a cost index that averages population-weighted typical rent and home value, each measured against the median state. A score of 100 is typical. West Virginia scores 60.2; California scores 215.8. Data is current as of September 2026.
| # | State | Typical home value | Typical rent | Median household income | Rent / income | Cost index |
|---|---|---|---|---|---|---|
| 1 | West Virginia | $191,271 | $1,062 | $57,956 | 22% | 60.2 |
| 2 | Mississippi | $193,236 | $1,177 | $55,102 | 25.6% | 64.2 |
| 3 | Iowa | $246,756 | $1,075 | $73,313 | 17.6% | 68.3 |
| 4 | Arkansas | $233,689 | $1,154 | $58,413 | 23.7% | 69.0 |
| 5 | Oklahoma | $221,084 | $1,223 | $64,348 | 22.8% | 69.5 |
| 6 | Louisiana | $221,198 | $1,293 | $60,583 | 25.6% | 71.7 |
| 7 | Kentucky | $245,547 | $1,197 | $63,268 | 22.7% | 72.0 |
| 8 | Alabama | $246,204 | $1,231 | $63,023 | 23.4% | 73.2 |
| 9 | Indiana | $267,115 | $1,292 | $70,479 | 22% | 78.0 |
| 10 | Kansas | $275,605 | $1,268 | $75,263 | 20.2% | 78.4 |
| 11 | Ohio | $265,265 | $1,335 | $71,274 | 22.5% | 79.1 |
| 12 | Missouri | $279,463 | $1,283 | $70,559 | 21.8% | 79.4 |
| 13 | North Dakota | $313,092 | $1,151 | $75,573 | 18.3% | 79.8 |
| 14 | Nebraska | $284,137 | $1,275 | $75,937 | 20.1% | 79.8 |
| 15 | South Dakota | $327,925 | $1,182 | $70,011 | 20.3% | 82.8 |
| 16 | Michigan | $290,351 | $1,420 | $73,223 | 23.3% | 85.3 |
| 17 | Wisconsin | $350,760 | $1,316 | $74,918 | 21.1% | 90.2 |
| 18 | New Mexico | $328,974 | $1,473 | $60,508 | 29.2% | 92.3 |
| 19 | Pennsylvania | $321,273 | $1,519 | $78,429 | 23.2% | 92.7 |
| 20 | South Carolina | $323,921 | $1,563 | $65,973 | 28.4% | 94.4 |
The most affordable states to live in: the top 20
1. West Virginia (index 60.2)
West Virginia has the lowest home values and the lowest rent of any state in the data. Its typical home value of $191,271 is about 52% of the median state’s, and its $1,062 rent is roughly $500 a month below the $1,563 median, about $6,000 a year. Median household income is $57,956, one of the lowest on the list, but rent still takes only 22% of it.
2. Mississippi (index 64.2)
Mississippi’s typical home value, $193,236, is less than $2,000 above West Virginia’s. Rent is higher at $1,177, and Mississippi has the lowest median household income in the data at $55,102, so rent consumes 25.6% of income, more than in most of the top 10. It is cheap in absolute terms, less so relative to local earnings.
3. Iowa (index 68.3)
Iowa is the strongest combination of low cost and solid income in the ranking. Typical rent of $1,075 is only $13 above West Virginia’s, while median household income is $73,313. That produces a rent-to-income ratio of 17.6%, the lowest of all 51 jurisdictions. Homes cost more than in the top two, at $246,756, but that is still about 3.4 times median income.
4–8. Arkansas, Oklahoma, Louisiana, Kentucky and Alabama
- Arkansas (69.0): $233,689 home value, $1,154 rent, $58,413 income, rent at 23.7% of income.
- Oklahoma (69.5): $221,084 home value, the third lowest in the data, with $1,223 rent and $64,348 income (22.8%).
- Louisiana (71.7): $221,198 home value but $1,293 rent; with $60,583 income, rent takes 25.6%, tied with Mississippi.
- Kentucky (72.0): $245,547 home value, $1,197 rent, $63,268 income (22.7%).
- Alabama (73.2): $246,204 home value, $1,231 rent, $63,023 income (23.4%).
These five are separated by just 4.2 index points. Oklahoma and Louisiana are notable for buyers, with home values near $221,000, while Arkansas and Kentucky offer lower rents.
9–14. A tight Midwestern and Plains cluster
After Alabama, the index jumps 4.8 points to Indiana at 78.0. Then six states fall within 1.8 points of each other:
- Indiana (78.0): $267,115 home value, $1,292 rent, $70,479 income, 22% rent burden.
- Kansas (78.4): $275,605, $1,268 rent, $75,263 income, 20.2%.
- Ohio (79.1): $265,265, $1,335 rent, $71,274 income, 22.5%.
- Missouri (79.4): $279,463, $1,283 rent, $70,559 income, 21.8%.
- North Dakota (79.8): $313,092 home value but only $1,151 rent; $75,573 income puts rent at 18.3%, the second-lowest share in the country.
- Nebraska (79.8): $284,137, $1,275 rent, $75,937 income, 20.1%.
Incomes in this group run from about $70,500 to $76,000, noticeably higher than in the Southern states ranked above them. The extra housing cost is modest, so rent burdens here are generally lower than in the top eight.
15–20. Approaching the median
- South Dakota (82.8): Like its northern neighbor, it pairs a relatively high home value ($327,925) with low rent ($1,182). Income is $70,011; rent takes 20.3%.
- Michigan (85.3): $290,351 home value, but rent of $1,420 pushes the index up. Income $73,223, rent at 23.3%.
- Wisconsin (90.2): $350,760 home value, close to the median, with rent of $1,316 well below it. Income $74,918, 21.1%.
- New Mexico (92.3): $328,974 home value and $1,473 rent, combined with $60,508 income, give a 29.2% rent burden, the highest in the top 20.
- Pennsylvania (92.7): $321,273 home value, $1,519 rent, and the highest income in the top 20 at $78,429 (23.2%).
- South Carolina (94.4): rent of $1,563, exactly the median state’s, with a $323,921 home value. Income of $65,973 means rent takes 28.4%.
Just outside the top 20, Texas ranks 21st at 94.6, with rent of $1,560 and a $325,878 home value, nearly indistinguishable from South Carolina on cost but with a higher income of $78,473.
What separates the top of the list
The top eight states all score below 74, and each has a typical home value under $250,000 and rent under $1,300. No state ranked ninth or lower meets both of those thresholds. The bottom of the top 20 is a different market: by South Carolina, home values exceed $320,000 and rent reaches the national median.
Rent and home values do not always move together. North Dakota and South Dakota have home values above $310,000, higher than every state in the top 12, yet their rents ($1,151 and $1,182) are lower than Mississippi’s. For renters, those two states are effectively cheaper than their rank suggests. Michigan and New Mexico show the reverse: moderate home values but rents of $1,420 and $1,473, which matters more to someone who does not plan to buy.
Cheap housing versus income
Low housing costs often come with lower incomes. Mississippi, West Virginia and Arkansas have the three lowest median household incomes in the data, all under $58,500. A useful check is rent as a share of income:
- Lowest burden in the top 20: Iowa (17.6%), North Dakota (18.3%), Nebraska (20.1%), Kansas (20.2%), South Dakota (20.3%).
- Highest burden in the top 20: New Mexico (29.2%), South Carolina (28.4%), Mississippi and Louisiana (both 25.6%).
By this measure, the Plains states deliver more affordability for local earners than some states ranked above them. New Mexico, despite ranking 18th on cost, has a higher rent burden than Wyoming (22%), Minnesota (20.7%) or Maryland (23.2%), all of which are more expensive in absolute terms.
For someone bringing an income from elsewhere, the absolute numbers matter more. West Virginia’s typical home costs about 3.3 times its median income; California’s costs about 9.4 times. Median household income in West Virginia is about 59% of California’s, but its typical home value is about 21% of California’s. Housing costs vary across states far more than incomes do.
Regional patterns
Of the 20 cheapest states, eight are in the South (West Virginia, Mississippi, Arkansas, Oklahoma, Louisiana, Kentucky, Alabama, South Carolina) and ten are in the Midwest and Plains (Iowa, Indiana, Kansas, Ohio, Missouri, North Dakota, Nebraska, South Dakota, Michigan, Wisconsin). New Mexico and Pennsylvania are the only others. No West Coast or New England state appears; the cheapest New England state, Vermont, ranks 28th at 108.9.
The South dominates the very top on raw cost, while the Midwest and Plains tend to offer higher incomes and lower rent burdens a few places further down.
The most expensive states for contrast
At the other end, California (215.8) and Hawaii (215.6) are nearly tied. California has the highest typical home value at $921,297, about 4.8 times West Virginia’s. Hawaii has the highest rent at $2,910 a month, $1,848 more than West Virginia’s. Rounding out the five most expensive:
- Massachusetts (180.9): $712,679 home value, $2,597 rent.
- New York (176.7): $665,665 home value, $2,667 rent, and rent equal to 35.8% of income.
- New Jersey (166.6): $619,288 home value, $2,550 rent.
These states also have higher incomes, between about $89,000 and $105,000, but not enough to offset housing. Rent takes 34% to 36% of income in California, Hawaii and New York. The highest rent burden in the country belongs to Florida, at 36.1%, where $2,154 rent meets a $71,602 median income; Florida ranks only 36th on overall cost.
Who each option suits
- Buyers seeking the lowest prices: West Virginia, Mississippi, Oklahoma and Louisiana, all with typical home values under $222,000.
- Renters earning a local wage: Iowa, North Dakota, Nebraska, Kansas and South Dakota, where rent takes about 20% of income or less.
- People with income set elsewhere, such as retirees or remote workers: the lowest absolute costs in West Virginia, Mississippi, Iowa and Arkansas stretch a fixed budget furthest.
- Those wanting near-median incomes with below-median housing: Pennsylvania, Wisconsin and Kansas, with incomes of roughly $75,000 to $78,000 and cost indexes of 78 to 93.
What this data does and doesn’t cover
The index measures housing only: typical rent and home value, weighted by population. It does not include property taxes, insurance, utilities, groceries, transportation or job growth, so total living costs may rank differently. State figures also average over very different local markets; individual ZIP codes within a state can be far cheaper or more expensive. Property owners can compare tax burdens on the lowest property tax states page, and prospective investors can review landlord-friendly states.
Frequently asked questions
What is the cheapest state to live in for 2026?
West Virginia ranks as the cheapest state by housing cost, with a cost index of 60.2, a typical home value of $191,271 and typical rent of $1,062 a month. The median state's figures are $364,413 and $1,563.
Which state has the lowest rent relative to income?
Iowa has the lowest rent-to-income ratio of all 51 jurisdictions at 17.6%, with typical rent of $1,075 and median household income of $73,313. North Dakota is next at 18.3%.
What is the most expensive state to live in?
California has the highest housing cost index at 215.8, with a typical home value of $921,297, narrowly ahead of Hawaii at 215.6. Hawaii has the highest typical rent at $2,910 a month.
Is Texas one of the cheapest states to live in?
Texas ranks 21st of 51, just outside the top 20, with a cost index of 94.6. Its typical rent of $1,560 and home value of $325,878 are slightly below the median state's.
Does this ranking include taxes, utilities and groceries?
No. The ranking covers housing only, using population-weighted typical rent and home value. Property taxes, utilities, groceries and other expenses are not included.
Sources and methodology
Typical home values and rents are Repit's ZIP-level estimates as of September 2026, weighted by each ZIP's population; incomes are U.S. Census Bureau ACS 5-year estimates (2022). ZIP codes failing Repit's data-quality checks are excluded. Housing costs only.