It always requires some serious thought and research when you are considering moving yourself or your whole family to a new city. To aid you in your search for a more affordable place to live, we’ve created this starter’s guide to the top 10 most affordable cities in the U.S.
These rankings are taken from the late 2018 Cost of Living Index (COLI) compiled by Council for Community and Economic Research. This index weighs the median household income per city against all costs including its median home prices, medical expenses, public transit costs, and groceries.
10. Brownsville, Texas
- Overall Cost of Living: 14.9% below U.S. average
- Population: 183,299 (2017)
- Median Household Income: $34,255
- Median Home Value: $83,800
- Unemployment Rate: 6.8%
Brownsville is Southern Texas’ main trade hub and is situated right near the border with Mexico. Many of its residents claim Mexican heritage, and you can expect to find both top Texan sirloin and authentic Mexican cuisine here. There are also plenty of local beaches for residents to take advantage of.
There are lots of jobs in tourism, and large companies such as Keppel Amfels and SpaceX have also set up shop here.
9. Oklahoma City
- Overall Cost of Living: 15.1% below U.S. average
- Population: 643,648 (2017)
- Median Household Income: $50,070
- Median Home Value: $142,700
- Unemployment Rate: 3.9%
With affordable rents and a strong culture of entrepreneurship and small business, Forbes Magazine rated Oklahoma City “recession-proof.” This Midwest hub is known for cowboy culture, arts, farmers markets, and highly-rated education.
You can also look forward to a short commute to work at an average of 22 minutes.
8. Jonesboro, Arkansas
- Overall Cost of Living: 15.5% below U.S. average
- Population: 71,551
- Median Household Income: $42,732
- Median Home Value: $141,900
- Unemployment Rate: 3.8%
If you’re looking for an affordable but quiet place to live, Jonesboro might be your next destination. This small but growing town is known for its low crime rate, modern medical facilities, and the arts.
There are jobs in various sectors here including manufacturing, service, education, healthcare, and retail.
7. Memphis, Tennessee
- Overall Cost of Living: 16.7% below U.S. average
- Population: 652,236 (2017)
- Median Household Income: $36,975
- Median Home Value: $93,700
- Unemployment Rate: 4.2%
The heart of Graceland is the home of blues, BBQ, and affordability. Culture is definitely a highlight here, and the city also hosts major Fortune 500 companies including AutoZone, FedEx, and International Paper Co.
When living in Memphis you can also look forward to paying no state, city or county income taxes.
6. Knoxville, Tennessee
- Overall Cost of Living: 17.8% below U.S. average
- Population: 187,347 (2017)
- Median Household Income: $34,556
- Median Home Value: $120,300
- Unemployment Rate: 3.5%
This big-little town offers all the amenities of a big city but is also a short jaunt away from hiking in the Great Smoky Mountains. It’s a very young city, with a quarter of its population being under 20.
The U.S. Department of Energy is a major employer here, as is The University of Tennessee. You can also find work in trades, health, and government.
5. Witchita Falls, Texas
- Overall Cost of Living: 18.3% below U.S. average
- Population: 104,747 (2017)
- Median Household Income: $43,997
- Median Home Value: $94,300
- Unemployment Rate: 3.6%
A small town with a big heart and an unemployment rate much lower than other towns of its size. The town is known for its large number of parks and the falls from which the town takes its name.
Industries here include aerospace, healthcare, education, military, manufacturing, government, and the oil industry.
4. Kalamazoo, Michigan
- Overall Cost of Living: 20.5% below U.S. average
- Population: 75,807 (2017)
- Median Household Income: $34,767
- Median Home Value: $96,600
- Unemployment Rate: 5.0%
This city with a small town feel is diverse and cosmopolitan, with a vibrant downtown core and lots of festivals throughout the year. Lots of local brewers make for no dull moments in Kalamazoo. The city is a harmonious blend of urban and green spaces.
Families should also note that any Kalamazoo student who achieves good grades is able to go to a city or state college for free!
3. Harlingen, Texas
- Overall Cost of Living: 21.4% below U.S. average
- Population: 65,467 (2017)
- Median Household Income: $35,718
- Median Home Value: $81,900
- Unemployment Rate: 6.8%
Nestled in the Rio Grande Valley, Harlingen offers warm weather year-round with plenty of national parks in proximity and plenty of cultural activities. It is considered a safe and quiet town with market days and friendly citizens.
Though unemployment here is high, there is a strong culture of entrepreneurship and up-and-coming small businesses.
2. Conway, Arkansas
- Overall Cost of Living: 21.8% below U.S. average
- Population: 65,782 (2017)
- Median Household Income: $47,190
- Median Home Value: $161,400
- Unemployment Rate: 3.8%
Conway is the fastest growing city in Arkansas with a lot of local color. Ever heard of the Toad Suck Daze festival? This city takes pride in its arts, culture and local greenery.
Conway is a transportation industry hub, and its five local colleges are also major employers.
1. McAllen, Texas
- Overall Cost of Living: 23.9% below U.S. average
- Population: 142,696 (2017)
- Median Household Income: $45,568
- Median Home Value: $117,500
- Unemployment Rate: 7.6%
McAllen takes the crown of most affordable place to live in the U.S., but be wary as it also has a high unemployment rate. This is on the upswing, however, as Forbes listed McAllen as one of the best cities for job growth.
With highly-rated public schools, an arts incubator and a vibrant downtown strip, there’s plenty to enjoy here. Education, arts, and retail take up the lions share of employment in this growing city.
What Cities Should I Avoid on a Tight Budget?
We hope you found this guide helpful. For a list of cities that the budget-conscious will want to avoid, be sure to read our Top 10 Least Affordable Cities in the U.S.