Choosing a low-cost state is challenging because a statewide price ranking cannot tell you what one home, job, commute, insurance policy, or interstate move will cost. A state with inexpensive housing may have lower wages, long driving distances, costly insurance, or a city that is far more expensive than the state average.
This guide will help you identify the states with the lowest official price levels, understand what the index includes, compare real destination costs, and keep the cost of living separate from the one-time cost of moving there.
The ten states with the lowest overall price levels
The Bureau of Economic Analysis compares each state with the national price level, set at 100. A score of 90 means prices were about 10% below the national level for the measured year. The latest state data available for this 2026 edition covers 2024.
| Rank | State | Price level | Approximate difference from U.S. |
|---|---|---|---|
| 1 | Arkansas | 86.9 | 13.1% lower |
| 2 | Mississippi | 87.0 | 13.0% lower |
| 3 | Iowa | 87.8 | 12.2% lower |
| 4 | Oklahoma | 87.8 | 12.2% lower |
| 5 | Louisiana | 88.2 | 11.8% lower |
| 6 | South Dakota | 88.6 | 11.4% lower |
| 7 | Alabama | 88.8 | 11.2% lower |
| 8 | North Dakota | 89.0 | 11.0% lower |
| 9 | West Virginia | 89.5 | 10.5% lower |
| 10 | Kansas | 90.1 | 9.9% lower |
Arkansas is the lowest-price state in the latest BEA data. The close scores among Iowa, Oklahoma, Louisiana, and South Dakota mean the household’s actual city, housing, and income can easily matter more than a few places in the ranking.
Housing usually creates the largest local difference
Statewide housing-rent indexes vary much more than many everyday goods. That is why a current apartment, home, property-tax, and insurance estimate should lead the destination budget. Compare the exact neighborhood and commute—not only a state median or a promotional “low cost” label.
Renters should price monthly rent, utilities, deposits, parking, pet charges, and likely renewal terms. Buyers should add down payment, current interest rate, taxes, homeowners insurance, maintenance, association fees, inspection findings, and closing costs. Moveline’s state comparison helps build the full comparison.
Compare income and take-home pay
Lower prices do not guarantee greater affordability. Start with the real salary or business income available in each location. Compare benefits, state and local taxes, licensing requirements, health-plan networks, childcare, and any reduction in remote-work pay.
If employment is not confirmed, research the exact occupation and metro before moving. A low state average cannot replace open positions, a written offer, or a workable commute. Keep a lower-income case in the budget so the move remains sustainable if a job search takes longer than planned.
Transportation can offset inexpensive housing
A lower rent outside a city may require one or two cars, longer commutes, more fuel, higher insurance, tolls, or winter-driving equipment. Compare the annual transportation cost from the actual address to work, school, health care, groceries, and family—not simply the distance to downtown.
Also check weather and utility needs. Heating, cooling, water, and insurance exposures differ across these states. Ask local providers for current rates and typical usage for a similar property rather than multiplying a statewide electricity price by a generic household.
Price the move separately from life after arrival
The one-time moving bill depends on origin, destination, mileage, shipment size, service, date, stairs, elevators, parking, traffic, tolls, city policies, and destination access. A low-cost state can still be expensive to reach from across the country.
Use Moveline’s moving-cost guide for a complete budget and mover questions before booking. Ask every mover to price the same inventory, services, addresses, and date window.
Build a destination budget before choosing a state
- Use a current rent listing or mortgage example for a real neighborhood.
- Compare take-home pay, benefits, taxes, and employment stability.
- Price transportation, utilities, insurance, care, and recurring services.
- Visit or research the commute, health care, schools, weather, and community fit.
- Add moving, deposits, travel, housing overlap, setup, and emergency savings.
Run the same budget for two or three candidate cities. The best destination is the one that leaves dependable room after essential costs—not necessarily the state ranked first.
How to read and refresh the ranking
The table uses BEA 2024 all-items Regional Price Parities, the newest state estimates available when this guide was updated in July 2026. Values are rounded to one decimal. The index compares relative prices; it is not a forecast, a household spending total, or a moving quote.
Refresh the housing, income, utilities, insurance, and moving prices immediately before deciding. Preserve the date and assumptions for each candidate so an older figure does not quietly control a 2026 relocation.
