Arkansas has the lowest statewide price level in the newest federal comparison, followed by Mississippi, Iowa, Oklahoma, and Louisiana. The top ten also includes South Dakota, Alabama, North Dakota, West Virginia, and Kansas.
The ranking uses 2024 Regional Price Parities released by the Bureau of Economic Analysis in February 2026. A national value of 100 is the reference. Arkansas at 86.9 means its overall price level was about 13.1% below the national level in that year.
The ten states with the lowest price levels
Iowa and Oklahoma both round to 87.8. Their full-precision values place Iowa slightly ahead. The practical difference is small; housing, income, taxes, insurance, transportation, and the exact community will matter more to a household than the tie-break.
Housing creates much of the advantage
The all-items figure combines several price categories. Housing rents were especially low relative to the country in Arkansas, Mississippi, Oklahoma, and West Virginia. Goods and utilities were also below the national level, but not by the same amount in every state.
A low statewide housing index does not promise a low current rent in every metro or a home that fits the household. Compare real listings, insurance, utility responsibility, commute, and condition in the communities under consideration.
Lower prices and affordability are not the same result
A state can have lower prices and still be difficult for a household with a lower local salary, high medical needs, expensive child care, or a long commute. The FRED article that guided this rewrite makes the distinction directly: affordability depends on having enough income to purchase the goods and services.
The states offer different kinds of lower-cost living
Arkansas and Mississippi have the lowest overall price levels and especially low housing-rent indexes. Iowa and Kansas combine below-national prices with a mix of small metros, towns, and rural areas. Oklahoma and Louisiana show strong price advantages but require address-level checks for insurance, weather exposure, utilities, and transportation.
South Dakota and North Dakota may fit households whose work and climate preferences match their communities. Alabama and West Virginia can offer low housing costs in many areas, while job access, health care, property condition, broadband, and commute remain local questions.
Compare real destinations, not statewide averages alone
The family-state guide adds education, health, safety, and family-life measures. Use the Moveline calculator only after two or three real destination communities have passed the monthly-budget test.
Moving experience supports the address-level check
Each year, Moveline’s nationwide agent network is responsible for more than one million moves. That experience consistently shows why a promising state average must be tested against the exact home, job, commute, insurance requirements, and moving route. The lower-cost state creates a useful shortlist; the local budget makes the decision.
When the ranking should be updated
The article should be refreshed after BEA releases a new complete state RPP series. Current listings, insurance prices, utility rates, tax rules, and wages should always be checked for the actual destination, because those can change before the federal comparison.
