In this article, we will be cross-referencing government census data around the average costs of food, median rent, and health care spending per capita to find the top 10 states with the lowest cost of living in the US.
According to the government census, the average household in the United States spends $61,334 a year on expenses, with a median income of $67,521 in 2020.
With the cost of living continuing to rise, many Americans are looking for ways to reduce their expenses and stretch their income further.
One way to do this is by moving to a state with a lower cost of living.
Whether you’re a retiree looking to stretch your savings, a young professional just starting out, or a family looking for a more affordable place to call home, these states offer a great balance of low costs and high quality of life.
How We Determined Our List
Monthly Food Cost
Living expenses, specifically the cost of food, can vary greatly depending on the state a person resides in. This can impact the overall cost of living as it’s a significant expense for most households.
The cost of food can be influenced by various factors including distribution costs, real estate prices and labor costs. To gather an idea of how much inhabitants of different states will spend on groceries, we have gathered data on the monthly food cost per person in all US states.
Median Rent
When it comes to determining the affordability of a place, median rent can be a useful metric, as it provides an insight into how much of a person’s income is being spent on housing.
Median rent can vary from state to state in the United States for several reasons. One of the main factors is the cost of living. Rent tends to be a good indicator of the cost of living because states with higher costs of living tend to have higher median rents.
Health Care Spending Per Capita
The United States has one of the highest healthcare costs in the world, with healthcare spending reaching a total of $4.1 trillion in 2020.
The cost of healthcare can vary from state to state for a number of reasons, including the cost of healthcare providers, including hospitals and doctors, as well as the cost of prescription medication and medical supplies.
Another factor that can affect the cost of healthcare is the state’s regulations and laws. For example, some states have stricter regulations on healthcare providers, which can increase costs. Others have more comprehensive Medicaid programs, which can help lower the cost of healthcare for local individuals and families.
We collected government data to gather a holistic view of healthcare spending across every state in the US.
How We Calculated Our List
To help inform our list, we have cross-referenced government data to calculate the annual average cost of groceries, healthcare and rent per state – we then compared these numbers across the US to find the states with the lowest cost of living.
Key Findings
- Kansas had the lowest monthly food cost per person at $261.35, with Mississippi coming in the highest at $423.33
- Arkansas had the lowest median rent at $760, followed by Kentucky at $783 and Mississippi at $289
- Idaho had the lowest annual average cost of healthcare per person at $7,772, with Kentucky coming in the highest at $9,778
Data Findings – 10 States With the Lowest Cost of Living In The US
#1: Arkansas
- Average Monthly Food Cost Per Person: $282.46
- Monthly Median Rent: $760.00
- Annual Average Health Care Spending Per Person: $8,912
- Average Annual Cost Of Living: $21,421.52
Located in the southern region of the United States, Arkansas is known for its diverse geography that includes the Ozark Mountains and the Delta region. The state is also known for its rich history, including the role it played in the Civil War. Not only does Arkansas have the lowest overall cost of living, it also has the lowest median rent in the whole US, likely contributing to its spot as number 1.
#2: Idaho
- Average Monthly Food Cost Per Person: $281.12
- Monthly Median Rent: $887.00
- Annual Average Health Care Spending Per Person: $647.67
- Average Annual Cost Of Living: $21,789.44
Known for its mountainous terrain, Idaho is a popular destination for outdoor activities such as skiing, hiking, and fishing. When it comes to the cost of living, Idaho has the lowest Health Spending per person on our list, as well as the second lowest monthly food cost, making it a solid contender with a low cost of living.
#3: Kansas
- Average Monthly Food Cost Per Person: $261.35
- Monthly Median Rent: $863.00
- Annual Average Health Care Spending Per Person: $8,845
- Average Annual Cost Of Living: $22,337.20
Known as the “Wheat State,” Kansas is a major producer of wheat and other grains. The state is also home to several historic sites and monuments, including the Tallgrass Prairie National Preserve. Kansas has the lowest monthly food cost of any state in the US, likely contributed by the high agricultural production in the region.
#4: New Mexico
- Average Monthly Food Cost Per Person: $307.79
- Monthly Median Rent: $857.00
- Annual Average Health Care Spending Per Person: $8,505
- Average Annual Cost Of Living: $22,482.48
New Mexico is known for its diverse culture and history, which is deeply influenced by Native American, Spanish, and Mexican heritage. The state is also home to several national parks and monuments, including White Sands National Park and Carlsbad Caverns National Park. New Mexico has a great combination of affordable housing, low cost of food and relatively low healthcare per capita, making it a solid contender for fourth place.
#5: Kentucky
- Average Monthly Food Cost Per Person: $315.20
- Monthly Median Rent: $783.00
- Annual Average Health Care Spending Per Person: $9,778
- Average Annual Cost Of Living: $22,956.40
Known as the “Bluegrass State,” Kentucky is famous for its horse racing, bourbon whiskey, and bluegrass music. The state is also home to several historic sites, including the Abraham Lincoln Birthplace National Historical Park. Although Kentucky has the highest healthcare cost per person, it also has the second lowest monthly median rent in our top 15 list, giving residents great affordable housing in-state.
#6: Oklahoma
- Average Monthly Food Cost Per Person: $346.66
- Monthly Median Rent: $818.00
- Annual Average Health Care Spending Per Person: $8,997
- Average Annual Cost Of Living: $22,972.92
Located in the southern Great Plains, Oklahoma is known for its rich Native American history and culture. The state is also a major producer of oil and natural gas. Oklahoma has the fifth lowest median rent on our list, as well as relatively low health care spending, landing it a spot at number 6.
#7: Iowa
- Average Monthly Food Cost Per Person: $347.05
- Monthly Median Rent: $806.00
- Annual Average Health Care Spending Per Person: $9,265
- Average Annual Cost Of Living: $23,101.60
Known as the “Hawkeye State,” Iowa is a major producer of corn, soybeans, and hogs. Iowa has the 4th lowest median rent which balances out its high average healthcare costs.
#8: Alabama
- Average Monthly Food Cost Per Person: $397.39
- Monthly Median Rent: $811.00
- Annual Average Health Care Spending Per Person: $8,788
- Average Annual Cost Of Living: $23,288.68
Known for its diverse geography that includes beaches, mountains, and forests, Alabama is home to several historic sites and monuments, including the civil rights movement sites. Alabama has relatively how healthcare spend per person compared to other US states, as well as affordable rent, which likely balances out it’s slightly higher average food costs.
#9: Missouri
- Average Monthly Food Cost Per Person: $312.63
- Monthly Median Rent: $843.00
- Annual Average Health Care Spending Per Person: $9,461
- Average Annual Cost Of Living: $23,328.56
Known as the “Show-Me State,” Missouri is known for its diverse geography that includes the Ozarks and the Mississippi River. The state is also home to several historic sites and monuments, including the Gateway Arch in St. Louis. Whilst both rent and healthcare are relatively high in Missouri, the monthly average food cost is one of the lowest nationwide, contributing to its spot on our top 10 list.
#10: Mississippi
- Average Monthly Food Cost Per Person: $423.33
- Monthly Median Rent: $789.00
- Annual Average Health Care Spending Per Person: $8,852
- Average Annual Cost Of Living: $23,399.96
Known for its rich history and culture, Mississippi is home to several historic sites and monuments, including the Vicksburg National Military Park and the Natchez Trace Parkway. Against national averages, Mississippi has relatively high monthly food costs, however this is likely balanced out by its spot as the state with the third lowest median rent nationwide.
Data Findings – 10 States With the Lowest Cost of Living In The US
| Monthly food cost per person | Median Rent | Annual Average Health Care Spending Per Capita | Annual cost | |
| Arkansas | $282.46 | $760.00 | $8,912.00 | $21,421.52 |
| Idaho | $281.12 | $887.00 | $7,772.00 | $21,789.44 |
| Kansas | $261.35 | $863.00 | $8,845.00 | $22,337.20 |
| New Mexico | $307.79 | $857.00 | $8,505.00 | $22,482.48 |
| Kentucky | $315.20 | $783.00 | $9,778.00 | $22,956.40 |
| Oklahoma | $346.66 | $818.00 | $8,997.00 | $22,972.92 |
| Iowa | $347.05 | $806.00 | $9,265.00 | $23,101.60 |
| Alabama | $397.39 | $811.00 | $8,788.00 | $23,288.68 |
| Missouri | $312.63 | $843.00 | $9,461.00 | $23,328.56 |
| Mississippi | $423.33 | $789.00 | $8,852.00 | $23,399.96 |