How this guide measures cheap
Two measures do the work. Rent is HUD's Fair Market Rent for a two-bedroom, averaged across each state by population. Everyday costs come from the Bureau of Economic Analysis's Regional Price Parities with housing and utilities removed, which leaves groceries, transport, healthcare and other ordinary spending. Keeping the two apart matters, because the states that are cheap on one are not always cheap on the other.
The five states that are cheap on both
Five states sit among the ten lowest on rent and also among the ten lowest on everyday costs.
| State | Two-bedroom rent, per month | Rent, of the fifty states | Everyday costs, of the fifty states | Median household income |
|---|---|---|---|---|
| North Dakota | $1,102 | 5th lowest | lowest | $77,871 |
| Iowa | $1,113 | 6th lowest | 2nd lowest | $75,501 |
| Arkansas | $1,061 | 2nd lowest | 6th lowest | $62,106 |
| Oklahoma | $1,127 | 7th lowest | 7th lowest | $66,148 |
| Louisiana | $1,161 | 9th lowest | 8th lowest | $60,986 |
North Dakota is the clearest case: the lowest everyday costs in the country and the 5th lowest rent. Iowa is close behind it on both. Arkansas has the 2nd lowest rent of any state. The full lists are on the lowest cost of living and cheapest rent rankings.
Why the lowest rent can mislead
West Virginia has the lowest rent in the country, yet its everyday costs are only 24th highest. Wyoming is the same story: the 4th lowest rent, with everyday costs 25th highest. Neither makes the five states above.
The reverse happens too. South Dakota, Nebraska and Kansas have everyday costs 3rd lowest, 4th lowest and 5th lowest, but their rents fall outside the cheapest ten. If you spend more on groceries, driving and healthcare than on rent, those three may suit you better than a state chosen on rent alone.
Low costs usually come with low pay
Mississippi, West Virginia and Louisiana have the three lowest median household incomes in the country, and all three are among the ten lowest rents. A low price is less of a bargain if local wages fall with it. Comparing a year of rent to median income shows which states are cheap relative to what people there earn.
| State | Two-bedroom rent, per month | Median household income | Rent as a share of income, of the fifty states |
|---|---|---|---|
| North Dakota | $1,102 | $77,871 | lowest |
| Wyoming | $1,094 | $75,532 | 2nd lowest |
| Iowa | $1,113 | $75,501 | 3rd lowest |
| South Dakota | $1,187 | $76,881 | 4th lowest |
| Utah | $1,493 | $96,658 | 5th lowest |
Utah is the surprise on that list. Its rent is near the middle of the country, but its median income is the 9th highest. Mississippi goes the other way: the 3rd lowest rent, yet only 20th lowest once income is counted. The rent against income ranking has all fifty.
Which view matters depends on your job. If you will earn a local paycheck, use the share of income. If you are bringing a remote salary or a pension with you, the plain prices matter more, because your income does not fall when you cross the state line.
Taxes can change the order
Rent and everyday prices leave out what you pay the state. On Locustep's estimate of state and local income, property and sales tax for a married couple on the U.S. median income, the five states above range from 4.2% in North Dakota to 6.9% in Iowa. For comparison, the same couple would pay 14.6% in New York.
If you plan to buy, look at property tax on its own. The effective rate is 1.29% in Iowa and 0.52% in Arkansas, the highest and lowest of the five. On a house that gap repeats every year, and a rent comparison will never show it.
The other end of the list
California, Hawaii, New York and New Jersey are each among the five highest on rent and among the five highest on everyday costs. The average two-bedroom in California costs $19,116 a year more than in West Virginia, before a single grocery bill. That gap is why a move can pay for itself, and also why people leaving a high-cost state should run their own numbers rather than trust an average.
How to use this for your own move
- Start with what you will actually spend. A renter and a buyer care about different numbers.
- Decide whether your income moves with you. If not, compare share of income, not price.
- Check the city, not only the state. Averages hide big gaps between a metro area and a small town.
- Add taxes and the cost of the move itself, using the money to move guide.
The free quiz ranks all fifty states on what you say matters, cost included, so a cheap state with nothing you want will not rise to the top. The Move Decision Kit, $39 once, then runs your own income and household through a chosen state: take-home pay, housing, moving costs and the month the move pays for itself.
Figures are HUD Fair Market Rents, BEA Regional Price Parities with housing and utilities removed, Census median household income and property-tax data, and Locustep's household tax estimate. They are state averages; your own costs depend on the city, neighborhood and household.