Some people choose to lay down roots in a new state because the weather is nice, while others move across the country to pursue a job or be closer to family. But there’s one important factor that almost everyone takes into consideration: the cost of living. These were the most affordable states to live in during the second quarter of 2026, according to the latest available data provided by the Council for Community and Economic Research.

10. Arkansas

The Natural State is America’s 10th-most affordable state, in part due to its low housing costs, which are nearly 23% below the national average. According to the Arkansas Economic Development Commission, the average list price per square foot to buy is $157, and the cost to rent averages a total of $967 per month — lower than in any neighboring state. Arkansas has also tried to make groceries more affordable, having recently eliminated the state’s grocery sales tax.

9. Tennessee

Costs in Tennessee are similar to those in Arkansas in many categories, though the Volunteer State offers surprisingly low utility bills. You’ll end up paying roughly 15.5% less on utilities in Tennessee than the national average. However, the cost of housing can vary considerably depending on where  in Tennessee you live. In Nashville, for instance, the average home price sits around $436,519, according to Zillow data. But in Memphis, you’ll end up paying just a third of that amount when purchasing a home.

7. Missouri (tie)

Missouri’s housing costs are about 24% below the national average, and transportation costs are roughly 13.5% less. As part of the study, the Council of Community and Economic Research examined three Missouri cities: St. Louis, Springfield, and Joplin. While St. Louis and Springfield rank slightly higher than the rest of the state in terms of affordability, Joplin is far more affordable. The housing index in Joplin is just 59.8 — over 40% lower than in the rest of the country.

7. Iowa (tie)

Compared to Missourians, Iowans benefit from slightly more affordable housing, utility, and health care costs. That said, Iowa residents pay a bit more for groceries and transportation. Financial firm SoFi notes that it costs $47,833 per year per person for the average individual to live in the Hawkeye State. In the capital city of Des Moines, the average home price is $211,280; however, you can save more by living in a place like Burlington, where the average home costs $125,329.

6. Indiana

Indiana saw a notable improvement in affordability from 2025 to 2026, according to the findings from the Council for Community and Economic Research. Hoosiers can expect to pay 2% to 9% less on groceries, utilities, transportation, and health care than the national average. But Indiana locals particularly benefit from low housing costs; buyers and renters pay 27% less on average.

According to the website Hoosiers by the Numbers, a resident of Indianapolis would spend roughly 15% less on groceries, 20% less on transportation and utilities, 60% less on health care, and seven times less for housing than a resident of New York City.

5. West Virginia

After snagging the top spot in the 2025 affordability rankings, West Virginia dropped a few spots to No. 5 this year. While West Virginians spend around the national average when it comes to transportation, they typically pay 4% less for groceries, 10% less on utilities, 10% less on health care, and 29% less on housing.

4. Kansas

At 12% below the national average, Kansas has the second-most affordable transportation costs in the country, and locals pay about 22.5% less for housing. SoFi notes that the average home costs $201,570 in Kansas City, $201,526 in Wichita, and $200,369 in Topeka.

3. Mississippi

One factor in Mississippi’s No. 3 ranking for affordability is the state’s health care costs, which are 14.9% below the national average — the most affordable of any state in the country.The average Mississippian shells out just $42,131 on annual expenses, according to stats from SoFi. That makes Mississippi far more affordable than many nearby Gulf states. The price to live in Texas, by comparison, is roughly 4.5% higher.

2. Alabama

Alabamans pay 14.4% less for health care (the second-lowest average cost in the U.S.) and 32.3% less for housing (also second-lowest) than the average American. According to SoFi, you can buy a home in Birmingham for $137,701 on average or in the capital of Montgomery for $152,703. Even popular cities like Huntsville — aka Rocket City — are quite affordable compared to the rest of the country.

1. Oklahoma

The Sooner State is America’s most affordable state to live in. The biggest factor at play is the cost of housing: People in Oklahoma spend 33.1% less on housing than the national average and have the lowest average housing costs in the U.S.

Homes in Oklahoma City will set you back an average of $207,961, but other places will cost you far less. For example, in Altus, located in the southwestern part of the state, the average home price is $105,534.

About the data: To compile this list, we consulted data from the Council for Community and Economic Research, which looked at the average cost of housing, groceries, utilities, health care, and transportation in all 50 states. You can view the full report here.