Top 10 Cheapest Cities in America to Live in 2025

In 2025, nationwide inflation and housing market fluctuations have many Americans rethinking where they live. From skyrocketing rents in coastal hubs to surging grocery and utility bills, the pressure on household budgets has never been higher. For those seeking relief, relocating to a more affordable city can dramatically improve quality of life—stretching every dollar further and unlocking opportunities for savings, investment, and leisure.

To identify the most wallet-friendly metros, we evaluated over 200 U.S. cities using our proprietary Cost of Living Calculator, alongside data from U.S. News & World Report, the Council for Community and Economic Research (C2ER), Zillow, Redfin, the U.S. Census Bureau, the Bureau of Labor Statistics, and FBI crime reports. Each city was scored on housing (both purchase and rent), transportation, utilities, groceries, healthcare, childcare, adjusted by median household income, unemployment rate, crime statistics, and availability of cultural and recreational amenities.

Whether you’re a remote worker hunting for lower rent, a young family seeking safe neighborhoods and good schools, or a retiree looking to downsize into a slower pace of life, this list will guide you to the places where your paycheck goes the farthest without sacrificing the essentials.

Overall Rankings: Top 10 Most Affordable U.S. Cities in 2025

1. Fort Wayne, IN – Median home $169,500; rent $1,078; only 20% of income on housing.
2. Huntsville, AL – Median home $300,000; rent $1,250; 19.6% income on housing; tech salaries high.
3. Wichita, KS – Median home $200,000; rent $950; cost of living 11% below national average.
4. Springfield, MO – Median home $173,800; rent $1,097; low groceries/utilities; mixed crime.
5. Davenport, IA – Median home $135,000; rent $873; manufacturing & healthcare stability.
6. Hickory, NC – Median home $154,100; rent $1,100; cost index ~84; mountain proximity.
7. Montgomery, AL – Median home $180,000; rent $927; low taxes; strong government jobs.
8. Green Bay, WI – Median home low $200s; rent $900; Packer-led community with 19.9% income on housing.
9. Little Rock, AR – Median home $200,000; rent $1,175; urban amenities for a bargain.
10. Oklahoma City, OK – Median home $237,000; rent $1,366; low gas/utilities; diversified economy.

1. Fort Wayne, Indiana

Housing Costs

Fort Wayne’s median home sale price is approximately $169,500, nearly half the U.S. national median. Rental rates average $1,078 for a two-bedroom apartment. Residents typically allocate just 20% of their income to housing costs—well below the 30% threshold commonly cited for affordability.

Everyday Expenses

Groceries run about 12% below the national average, benefiting from efficient Midwestern supply chains. Utility bills (electricity, water, gas, internet) are roughly 10% lower than U.S. medians. Transportation costs remain minimal thanks to short average commutes (under 20 minutes) and affordable gasoline.

Job Market & Income

With a median household income of $71,500, Fort Wayne supports a robust economy in manufacturing (Steel Dynamics, BAE Systems), healthcare (Parkview Health, Lutheran Health Network), defense contracting, and education. The unemployment rate hovers around 3–4%, and wage growth has consistently edged above inflation over the last five years.

Safety & Quality of Life

Fort Wayne ranks in the top quartile for low violent and property crime rates among similarly sized metros. The revitalized downtown area boasts riverfront trails, an award-winning children’s zoo, and a growing craft brewery scene. Excellent public and private schools serve families, while Parkview Regional Medical Center and Lutheran Health Network ensure top-tier healthcare.

2. Huntsville, Alabama

Housing & Taxes

Huntsville’s median home price is about $300,000, with median rent near $1,250. Only 19.6% of median household income goes toward housing—one of the best ratios in the nation. Alabama’s property taxes and state income tax rates rank among the lowest in the U.S., amplifying overall affordability.

Cost of Living

The overall cost of living index is roughly 7–10% below the national average. Grocery prices are about 8% lower, and utilities run 5% cheaper. Healthcare costs—anchored by Huntsville Hospital and Crestwood Medical Center—are around 10% below U.S. medians.

Economy & Incomes

Known as “Rocket City,” Huntsville is home to NASA’s Marshall Space Flight Center and Redstone Arsenal. The influx of defense and tech firms has driven median household income to approximately $80,000. Job growth outpaces national averages by around 20%, especially in aerospace, biotech, and advanced manufacturing.

Lifestyle & Recreation

Huntsville consistently ranks as one of Alabama’s safest large cities. Its downtown offers art galleries, farm-to-table dining, and local breweries. Outdoor enthusiasts enjoy Monte Sano State Park’s hiking trails and the Huntsville Botanical Garden. The city also hosts annual festivals like the Panoply Arts Festival and a thriving start-up scene.

3. Wichita, Kansas

Housing & Utilities

Wichita’s median home value is about $200,000, with average rent near $950. Kansas’ low energy prices yield utility bills approximately 15% below the national average—even with hot summers and cold winters.

Daily Living Costs

Gas prices in Kansas rank among the lowest nationally, and grocery prices average 8% below the U.S. Consumer Price Index. Dining out and entertainment options are budget-friendly, supported by a vibrant local restaurant and brewery scene.

Employment & Wages

Dubbed the “Air Capital of the World,” Wichita supports thousands of jobs at Spirit AeroSystems, Textron Aviation, and legacy Boeing operations. The median household income of roughly $62,500 stretches further thanks to minimal living expenses.

Community & Culture

Wichita boasts the Wichita Art Museum, Botanica Gardens, the Museum of World Treasures, and a growing craft brewery community. While some urban neighborhoods experience higher property crime, many suburbs offer top-rated schools and family-friendly environments.

4. Springfield, Missouri

Housing Market

Springfield’s median home price is about $173,800, with rent averaging $1,097. Starter homes under $150,000 and Missouri’s low property taxes make homeownership accessible on modest incomes.

Living Expenses

Utilities in Missouri rank among the nation’s cheapest, keeping bills low. Groceries and healthcare costs are about 12% below U.S. averages, and childcare rates remain affordable for families.

Job Landscape

Major employers include CoxHealth, Mercy Hospital, and Missouri State University. With a median household income near $56,000, residents find that earnings go further in this cost-effective market. Unemployment tracks close to national levels.

Quality of Life

Known as the “Queen City of the Ozarks,” Springfield offers ready access to hiking, fishing, and boating in nearby state parks. Cultural highlights include the Wonders of Wildlife museum and a revitalized downtown entertainment district. Crime varies by neighborhood—suburbs like Nixa and Ozark provide safer alternatives.

5. Davenport, Iowa (Quad Cities)

Real Estate & Rent

The Quad Cities metro’s median home price is roughly $135,000, with Davenport rentals averaging $873. This equates to just 18–20% of household income spent on housing—among the lowest rates nationally.

Cost Profile

Iowa’s cost of living index sits about 8% below the national average. Groceries, insurance, and healthcare expenses remain low, supported by efficient local agriculture and supply chains.

Employment Base

John Deere’s world headquarters, Deere & Company manufacturing plants, and major healthcare systems (Genesis Health, UnityPoint) support stable employment. Median income hovers around $60,000.

Community Highlights

Riverfront parks, annual jazz and blues festivals, and minor league baseball provide affordable entertainment. Bettendorf, IA—part of the Quad Cities—is consistently ranked among the safest U.S. small cities.

6. Hickory, North Carolina

Home Prices & Taxes

Hickory’s median home price is about $154,100, with rent around $1,100. Combined state and local taxes are moderate, improving take-home pay.

Cost Metrics

Hickory’s overall cost-of-living index sits near 84 (100 = U.S. avg). Groceries and utilities run 7–12% below national norms.

Economic Drivers

Historically a furniture hub, Hickory now hosts major data centers (Google, Apple) and tech firms. A median household income of $63,000 covers essentials comfortably.

Recreation & Safety

Lake Hickory boating, nearby hiking trails, and a charming downtown foster a relaxed lifestyle. Crime rates are low, and local schools earn strong ratings.

7. Montgomery, Alabama

Housing & Utilities

With a median home price of $180,000 and rent near $927, Montgomery remains highly affordable. Utilities cost about 10% below the U.S. average.

Expenses & Taxes

Alabama’s combined state and local sales tax rates are moderate, and property taxes rank among the nation’s lowest.

Job Market

State government offices, Maxwell-Gunter Air Force Base, and Hyundai’s manufacturing plant drive employment. A median income near $62,000 aligns well with local living costs.

Culture & Safety

Montgomery’s Civil Rights landmarks, Riverfront Park events, and museums enrich community life. Crime is higher in central neighborhoods—suburbs like Prattville deliver safer, family-friendly environments.

8. Green Bay, Wisconsin

Real Estate & Taxes

Median home values sit in the low $200,000s, with rent around $900. Although Wisconsin’s property taxes are higher, overall tax burdens remain reasonable due to lower home prices.

Cost of Living

Utilities run slightly above the national average because of winter heating, but groceries and services remain on par or below U.S. medians.

Economy & Income

Manufacturing (paper, machinery), healthcare, and the Packers franchise underpin a median household income near $64,000. Seasonal tourism adds revenue.

Community & Lifestyle

A passionate football culture, riverwalk, and community festivals drive engagement. Crime rates are below average for similar metros, making Green Bay a safe, tight-knit city.

9. Little Rock, Arkansas

Housing & Amenities

Median home price close to $200,000, rent around $1,175. Options range from downtown lofts to suburban family homes.

Cost Profile

Arkansas’s cost-of-living index is ~87. Groceries, utilities, and healthcare cost 12–15% below national medians.

Economy & Jobs

State government, University of Arkansas Medical Sciences (UAMS), and retail headquarters (Dillard’s) support a median income of $63,000.

Culture & Safety

The Clinton Presidential Library, River Market District, and a growing arts scene provide urban perks. West Little Rock suburbs offer lower crime rates and top-rated schools.

10. Oklahoma City, Oklahoma

Housing & Transportation

Median home price around $237,000, rent about $1,366. Oklahoma benefits from some of the nation’s lowest gas prices and auto insurance rates.

Cost Index

Overall cost of living is ~15% below the U.S. average. Utilities are near average—summertime AC use balances mild winters.

Economy & Income

Energy, aerospace (Tinker AFB), finance, and healthcare diversify the market. Median household income hovers around $65,000.

Amenities & Community

NBA’s Thunder, Bricktown entertainment district, and Myriad Botanical Gardens offer city attractions. Crime is average—suburbs like Edmond deliver safer neighborhoods.

Methodology

We combined 2024–2025 data from:

• Council for Community and Economic Research (C2ER) Cost of Living Index
• Zillow & Redfin market data for median home prices and rents
• U.S. Census Bureau & Bureau of Labor Statistics for incomes, unemployment, and CPI
• FBI Uniform Crime Reports for city-level crime statistics
• Local utility providers and state energy reports for utility costs
• Healthcare access metrics (hospitals per capita, average procedure costs)

Housing costs were weighted most heavily (40% of score), followed by income-adjusted affordability (25%), job market strength (15%), safety (10%), and amenities/quality-of-life factors (10%).

Find Your Next Home

Ready to see how far your salary goes in these affordable cities? Use our Cost of Living Calculator to compare any two U.S. cities side by side. Whether you’re seeking lower rent, better schools, or a fresh start, you’ll find your perfect match here.