Cheapest State to Live In: Cost of Living Guide for Affordable Living 2025

Imagine a place where your paycheck stretches like elastic, your rent makes you laugh, and a burger doesn’t cost half an hour of your wage. That place really exists—at least, if you know which state to pick. Every year, the showdown for the cheapest state to live in heats up, and in 2025, one winner is still wearing the crown. No, it’s not California, and it’s not New York. We’re talking about Mississippi. But cheap living isn’t as simple as comparing milk or gasoline. There’s a lot baked into the numbers: housing, utilities, groceries, healthcare, and even those sneaky hidden costs nobody talks about. Want to know why Mississippians aren’t just whistling Dixie about cheap living? Keep on reading.

What Makes Mississippi the Cheapest State in 2025?

When experts stack up cost of living data, Mississippi almost always lands on top—or, well, bottom, depending on how you see it. According to the Council for Community and Economic Research, Mississippi keeps its spot in 2025 as the state with the lowest average cost of living index. That means everything, from healthcare to housing, consistently comes in under the national average—sometimes by a whopping 20% or more.

Let’s talk housing. Housing’s the big elephant in any family budget, and Mississippi’s real estate market is seriously gentle on wallets. In 2025, the median home price floats just above $160,000. Compare that to the U.S. median—now pushing $420,000—and it’s hard not to look twice. Rent? Most one-bedroom apartments in metro areas set you back less than $900 a month. You’ll find plenty of towns outside the big cities with rents dropping closer to $600. A three-bedroom house? Easily under $1,200. These numbers aren’t vanishingly rare—they’re standard everyday options on real estate sites.

Utilities tell the same story. The U.S. Energy Information Administration reports Mississippians shell out about $128 a month on average for electricity in 2025. That’s below the country’s $144 monthly average. Water, internet, and trash collection are just as forgiving. No winter blizzards to crank up the heating. Summers are hot, no doubt, and ACs run, but most folks are used to managing energy bills in creative ways: window screens, shade trees, fans, and good insulation do wonders. You adapt and save.

Groceries? Mississippi’s got your daily bread for less. The Missouri Economic Research and Information Center pegged food costs here at about 8% below the national average. Milk, eggs, bread, veggies—everything checks in cheaper, including at local farmers’ markets where homegrown produce comes at friendly prices. Eating out costs less, too: a casual meal at a local spot costs about $10. Fast food? Under $7. A typical grocery bill for a couple runs just under $400 per month—a number folks in the Northeast can only dream about.

Healthcare doesn’t throw in any nasty surprises either. While national averages for health insurance are spiraling north, Mississippi’s numbers stay close to the bottom. According to the Kaiser Family Foundation, monthly premiums for individual plans remain 10-15% under the U.S. mean. Even out-of-pocket expenses for dental and vision stick to the low end. Now, quality is a mixed bag—rural hospitals sometimes struggle, but in urban centers, care is competent and affordable. Telehealth and regional clinics have plugged some gaps that used to be an issue.

There are some trade-offs, naturally. Wages, for one, tend to trail coastal states. The median household income in Mississippi sits at $54,500, which is below the 2025 national mark of about $80,000. But the gap closes when you see how little you actually spend every month. And while job choices can be limited in smaller towns, cities like Jackson, Gulfport, and Hattiesburg have opportunities in healthcare, education, and a brewing tech sector that’s catching up.

Taxes? Mississippi shines here, too. The state income tax is now a flat 4.7% (after a new 2024 law), which is lower than many neighbors. Property taxes are among the lowest in the South, averaging just 0.83%—compare that to New Jersey’s whopping 2.23%. Sales taxes add 7%, and some localities tack on a smidge more, but big-ticket buys still hurt less than they would in pricey states.

The real kicker? Mississippians enjoy a slower pace—less traffic, fewer big-city headaches, and a sense of community you won’t find in larger urban sprawls. There’s a strong tradition of looking out for neighbors and spending evenings on the porch. All this, while cheapest state to live vibes are real.

Budget-Friendly Living: How Does Mississippi Compare to Other Cheap States?

Everyone talks about Mississippi, but there’s a small cluster of other states nipping at its heels on the affordability list—places like Arkansas, Oklahoma, and West Virginia. Curious how they stack up? It’s closer than you’d think, though Mississippi still edges out thanks to lower home prices and overall consistency across categories.

Arkansas, for one, is often a top contender. Its cost of living index is just a hair above Mississippi and boasts similar housing costs. The median home price there is around $187,000, and utilities come in at $136 a month. Not bad, right? Arkansas’s big plus is access to the Ozark Mountains, a ton of free outdoor recreation, and cities like Little Rock and Fayetteville that serve up more nightlife and cultural diversity. On the downside, some groceries (especially select produce) cost a bit more thanks to transportation costs—nothing wild, but it adds up over months.

Oklahoma struts in next. It’s got a median home price around $198,000 for 2025, excellent for anyone craving space. Gas is a bargain, too, since Oklahoma’s oil industry pushes down pump prices. Tulsa and Oklahoma City add more buzz—think food scenes, museums, and decent pay in energy, aerospace, and tech. But state and local sales taxes get aggressive, sometimes hitting 8.5%. Some towns also struggle with higher insurance premiums because of unpredictable weather. Think tornadoes, hail, and the odd ice storm, so budgets might need a little wiggle room.

West Virginia—wild and wonderful—delivers low housing costs (median $165,000) and modest property taxes (0.58% average, lowest in the US). It’s a paradise if you love forests, rivers, and old-school small-town vibes. Health services are comparatively cheap, though some areas have longer waits and fewer options for specialty care. Winters can bite, too; you’ll want to budget for heating.

How do you know which cheap state fits you? It depends on more than numbers. If you need a big city, a high-paying tech job, or world-class dining on every block, you’ll have to accept a cost hike. If you’re game for less hustle, more porch time, and a real community vibe, Mississippi and its competitors deliver hard. Most make it easy to buy a home and still have enough for a vacation or savings account. Some even offer relocation incentives: Oklahoma and Arkansas both have remote worker grants for 2025—up to $10,000 for moving in and working locally or remotely. Mississippi’s smaller towns are getting in on the action too, with cash grants and tax breaks for first-time buyers.

Common trade-offs? Public transportation is limited in many cheap states; you’ll want a car (another budget item to check). Sometimes grocery variety is thinner, with fewer international markets or specialty shops. School ratings vary a lot, so if you’re moving with kids, check district rankings. But some communities stand out with high-achieving schools and safe neighborhoods, especially in suburbs of larger cities like Jackson or Gulfport.

If you’re comparing, here’s a quick snapshot of median home prices in 2025:

Most folks moving to one of these states are surprised how far their income stretches—weekly groceries, utilities, a night out, and still plenty left over for savings or spoiling yourself now and again. It’s not chump change. Sure, you have to get used to the pace and sometimes shop a little smarter, but it beats fighting for parking and $20 cocktails most days.

Tips for Relocating to the State with the Lowest Cost of Living

So you’re thinking about making the jump. First tip: visit before you commit. Lots of people are shocked—in a good way—by how friendly folks are, and how much you get for your money. But some get caught off guard by the heat, humidity, or just the sheer difference in pace. Do a trial run. Grab an Airbnb in the city or small town you’ve got your eye on and push your cart through the local grocery store, eat at a few local diners, peek at open houses. It gives you a taste without the stress.

Next, research the job situation. If you already work remotely, you’re golden—cost of living drops but your salary doesn’t. If you need local work, check job boards in your field, and dig into company reviews, commute times, and benefits. Mississippi and similar states have a steady need for healthcare workers, teachers, and skilled trades. The up-and-coming tech hubs (Jackson, Tupelo, Biloxi) are worth a look if you’re in IT or digital work.

Finding a home? Don’t rush. Take advantage of plentiful listings. Prices are lower, but deals are sometimes unadvertised—talking to a local real estate agent (not just Zillow) really helps. Some areas have down payment assistance, especially for first-time buyers or those moving from out of state. Local credit unions know all the tricks and incentives, so connect with them instead of just large banks.

For renters, be ready to show proof of income and a credit check. Rental demand isn’t as wild as in big cities, so you generally have the upper hand in negotiations. Lots of landlords are flexible—especially if you show you’re serious and understand the rhythm of the local market. Beware of old houses needing lots of repairs; some older places look cute but hide high utility bills or tricky maintenance.

Setting up utilities is easy, but do ask about average monthly costs before you sign a lease or deed. Some towns have bundled utility deals, and local providers can give you honest estimates so there are no surprises. Internet speeds are better than folks think, especially near metro areas, but always check coverage first—if you need high-speed fiber for remote work, ask neighbors or browse local Facebook groups for real-world reviews.

Think about lifestyle. Mississippi is famous for festivals, music, and food (barbecue, fried catfish, and sweet tea). Outdoor lovers get rivers, forests, and relaxed beach towns on the Gulf Coast, often at a fraction of what it would cost to live near popular coastlines. If you crave city buzz, Jackson delivers, as do Memphis and New Orleans just across state lines. Community plays a big role: farmers’ markets, high school football, block parties. If you want to actually know your neighbors and participate, you’ll fit right in.

One caution: weather. Summer gets hot, and humidity can be relentless, especially for newcomers. Hurricanes and tornadoes do happen—get familiar with local emergency plans, know your insurance options, and don’t skimp on storm prep. Most homes have reliable AC, and you learn to love shady porches quickly. Winter’s mild, so shed that snow shovel—ice and snow are rare events.

Healthcare? Register with a local clinic early, even if you’re healthy, to get into the system. Pharmacies are plentiful and prescriptions cost less in general, but check how your current insurance works out of state. If you’re moving with kids, scope out schools—not just by rankings but with in-person visits and chats with parents or teachers. Mississippi has standouts that punch above their weight.

Local life runs slower—take time to adjust. People may strike up a conversation at the store or bring over a pie when you move in. Socializing is often done over barbecue or church events, not at fancy cocktail bars. If you’re open to it, you’ll find belonging, not just cheap rent.

Best move? Make a checklist. From checking flood zones to reading up on local customs and quirks, having a plan smooths out any bumps. Plenty of folks every year find themselves trading up from cramped urban living to roomy houses and real yards for the price of a city condo. And if Mississippi isn’t quite your speed, neighboring states let you swap sceneries without burning your budget. Either way, your dollar—and your lifestyle—will thank you.