A bigger salary doesn’t always mean a better financial life. Where you live can have an enormous impact on what your paycheck actually buys once housing, groceries, utilities, transportation, healthcare, and taxes enter the equation.
According to MERIC’s first-quarter 2026 Cost of Living Index, many of America’s least expensive states are concentrated in the South and Midwest. A score below 100 indicates costs below the national benchmark, and housing is often where the biggest savings appear.
1. Oklahoma
Cost of Living Index: 83.5
Oklahoma currently has the lowest cost of living in MERIC’s ranking, at roughly 16.5% below the national benchmark. Housing stands out even more, with an index of just 66.9.
That means a salary that might feel tight in an expensive coastal market can potentially cover substantially more here, particularly when it comes to housing.
2. Alabama
Cost of Living Index: 85.0
Alabama ranks second in MERIC’s latest data. Housing costs are particularly favorable, with an index of 67.7, while transportation and healthcare also come in below the national benchmark.
3. Mississippi
Cost of Living Index: 86.2
Mississippi combines inexpensive housing with relatively low everyday expenses. SmartAsset also found it was the least expensive state for a family of four to live comfortably in its 2026 analysis.
4. Kansas
Cost of Living Index: 87.6
Kansas sits more than 12% below the national cost benchmark. Housing, transportation, and healthcare all score below 100, helping salaries stretch across several major household expenses.
5. West Virginia
Cost of Living Index: 87.9
Housing is one of West Virginia’s biggest financial advantages. Its housing index is only 71.3, and SmartAsset estimates that a single adult needs less income to live comfortably here than in any other state.
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6. Indiana
Cost of Living Index: 88.3
Indiana offers relatively affordable housing while still providing access to employment centers such as Indianapolis. Its housing index of 73.0 is substantially below the national benchmark.
7. Missouri
Cost of Living Index: 88.6
Missouri tied for the seventh-lowest cost of living in the country during the first quarter of 2026. That affordability can make cities outside the country’s most expensive coastal markets attractive to workers focused on purchasing power.
8. Iowa
Iowa continues to rank among America’s more affordable states, particularly when compared with expensive coastal markets. Housing is a major reason a moderate salary can potentially support a more comfortable lifestyle here.
Recent affordability rankings also place Iowa among the country’s strongest states for people considering a move based partly on cost.
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9. Arkansas
Housing and everyday costs help Arkansas remain one of the country’s more affordable places to live. A recent 2026 affordability analysis ranked it first overall when comparing the financial appeal of relocating across all 50 states.
10. Nebraska
Kentucky’s comparatively inexpensive housing helps make everyday expenses easier to manage. Recent national affordability rankings place it comfortably within the country’s more affordable half.
12. Ohio
Ohio offers something especially appealing for workers: relatively affordable housing combined with several sizable employment centers, including Columbus, Cleveland, and Cincinnati.
It ranked 14th in a recent overall affordability study, while other analyses have highlighted its particularly strong housing purchasing power.
13. Tennessee
Tennessee combines relatively manageable living costs with another financial advantage: the state doesn’t tax individual earned income.
SmartAsset also found that the income a single adult needs to live comfortably in Tennessee declined from 2025 to 2026.
14. Michigan
Outside its most expensive pockets, Michigan offers many areas with comparatively approachable housing costs. A recent national affordability ranking placed the state 16th overall.
15. Texas
Texas isn’t as inexpensive as some states on this list, and costs can vary dramatically between cities. However, it still benefits from having no individual state income tax, while certain regions remain considerably less expensive than major coastal metros.
A 2026 analysis also found that the income required for a single adult to live comfortably in Texas declined compared with the previous year.
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