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

Affordability Breakdown

Fort Wayne stands out with a median home sale price around $169,500, significantly less than the U.S. national median. Renters can find two-bedroom apartments averaging $1,078. This translates to residents typically spending only about 20% of their income on housing, offering substantial financial flexibility. Beyond housing, everyday costs are manageable: groceries run about 12% below the national average, and utility bills are roughly 10% lower. Transportation expenses are also minimal due to short average commutes (under 20 minutes) and reasonable gas prices.

Job Market & Economy

With a median household income of $71,500, Fort Wayne boasts a diverse economy anchored by manufacturing (Steel Dynamics, BAE Systems), a robust healthcare sector (Parkview Health, Lutheran Health Network), defense contracting, and education. The city maintains a healthy unemployment rate, typically around 3–4%, and has seen wage growth consistently outpacing inflation in recent years.

Lifestyle & Amenities

Fort Wayne offers a high quality of life, ranking well for low crime rates. Its revitalized downtown features scenic riverfront trails, the acclaimed Fort Wayne Children's Zoo, and a burgeoning craft brewery and distillery scene. Families benefit from excellent public and private school options, while top-tier healthcare is provided by Parkview Regional Medical Center and Lutheran Health Network.

2. Huntsville, Alabama

Affordability Breakdown

Huntsville's appeal includes a median home price of approximately $300,000 and median rent near $1,250. Remarkably, residents spend only about 19.6% of the median household income on housing. Alabama's low property and state income taxes further enhance affordability. The overall cost of living is 7–10% below the national average, with groceries about 8% lower and utilities 5% cheaper. Healthcare costs are also about 10% below U.S. medians.

Job Market & Economy

Nicknamed "Rocket City," Huntsville is a major hub for NASA's Marshall Space Flight Center and the U.S. Army's Redstone Arsenal. This has attracted numerous defense and technology firms, pushing the median household income to around $80,000. Job growth, particularly in aerospace, biotechnology, and advanced manufacturing, consistently outpaces national averages.

Lifestyle & Amenities

Huntsville is recognized as one of Alabama's safest large cities. Its vibrant downtown offers a mix of art galleries, farm-to-table restaurants, and local breweries. Outdoor enthusiasts appreciate Monte Sano State Park for hiking and the expansive Huntsville Botanical Garden. The city also boasts a lively start-up scene and popular annual events like the Panoply Arts Festival.

3. Wichita, Kansas

Affordability Breakdown

In Wichita, the median home value is an accessible $200,000, with average rents around $950. Kansas's low energy prices contribute to utility bills approximately 15% below the national average. Daily living is also cost-effective, with gas prices among the lowest nationally and groceries averaging 8% below the U.S. Consumer Price Index.

Job Market & Economy

Known as the "Air Capital of the World," Wichita's economy is heavily influenced by major aviation companies like Spirit AeroSystems and Textron Aviation. The median household income is roughly $62,500, which stretches further due to the low cost of living.

Lifestyle & Amenities

Wichita offers a variety of cultural attractions, including the Wichita Art Museum, Botanica (The Wichita Gardens), and the Museum of World Treasures. The city also has a growing craft brewery scene and budget-friendly dining options. While some urban areas see higher property crime, many suburban neighborhoods provide top-rated schools and family-oriented environments.

4. Springfield, Missouri

Affordability Breakdown

Springfield features a median home price of about $173,800, with average rents at $1,097. The accessibility of starter homes under $150,000, combined with Missouri's low property taxes, makes homeownership attainable. Utilities in Missouri are among the nation's cheapest, and costs for groceries and healthcare are about 12% below U.S. averages. Childcare also remains relatively affordable.

Job Market & Economy

Key employers in Springfield include CoxHealth, Mercy Hospital, and Missouri State University. The median household income is near $56,000. While this income level is modest, the significantly lower cost of living allows it to go further.

Lifestyle & Amenities

As the "Queen City of the Ozarks," Springfield provides easy access to outdoor activities like hiking, fishing, and boating in the scenic surrounding state parks. Cultural attractions include the impressive Wonders of Wildlife National Museum and Aquarium and a revitalized downtown area with entertainment options. Crime rates vary by neighborhood, with suburban areas like Nixa and Ozark often preferred for their safety.

5. Davenport, Iowa (Quad Cities)

Affordability Breakdown

Part of the Quad Cities metro area, Davenport boasts a median home price of roughly $135,000, with rentals averaging $873. This results in housing costs consuming only 18–20% of typical household income. Iowa's overall cost of living index is about 8% below the national average, with low expenses for groceries, insurance, and healthcare, partly due to efficient local agriculture.

Job Market & Economy

The region's economy is stabilized by major employers such as John Deere (world headquarters and manufacturing) and large healthcare systems like Genesis Health and UnityPoint. The median household income is around $60,000.

Lifestyle & Amenities

Davenport offers affordable entertainment through its riverfront parks, annual jazz and blues festivals, and minor league baseball. The Figge Art Museum is a notable cultural institution. Bettendorf, another city within the Quad Cities, is frequently ranked among the safest small cities in the U.S.

6. Hickory, North Carolina

Affordability Breakdown

Hickory's median home price is approximately $154,100, with average rent around $1,100. North Carolina's moderate state and local taxes help improve take-home pay. The overall cost-of-living index for Hickory is near 84 (with 100 being the U.S. average), and expenses for groceries and utilities are 7–12% below national norms.

Job Market & Economy

While historically known for furniture manufacturing, Hickory's economy has diversified to include major data centers for companies like Google and Apple, alongside other tech firms. The median household income is $63,000, which covers living expenses comfortably.

Lifestyle & Amenities

Residents of Hickory enjoy a relaxed lifestyle with access to Lake Hickory for boating and water sports, as well as nearby hiking trails in the Appalachian foothills. The city features a charming downtown area. Crime rates are generally low, and local schools receive strong ratings, making it attractive for families.

7. Montgomery, Alabama

Affordability Breakdown

Montgomery offers high affordability with a median home price of $180,000 and average rent near $927. Utility costs are about 10% below the U.S. average. Alabama's property taxes are among the nation's lowest, and combined state and local sales taxes are moderate.

Job Market & Economy

The job market is driven by state government offices, Maxwell-Gunter Air Force Base, and Hyundai's automotive manufacturing plant. The median household income is approximately $62,000, which aligns well with the low cost of living.

Lifestyle & Amenities

Montgomery is rich in history, with significant Civil Rights landmarks. Riverfront Park offers events and recreation, and the Montgomery Museum of Fine Arts is a key cultural venue. While central neighborhoods can experience higher crime, suburban areas like Prattville provide safer, family-friendly living.

8. Green Bay, Wisconsin

Affordability Breakdown

In Green Bay, median home values are in the low $200,000s, with average rent around $900. While Wisconsin's property taxes can be higher, the overall tax burden is offset by lower home prices. Utilities can be slightly above the national average due to winter heating needs, but groceries and other services are generally at or below U.S. medians.

Job Market & Economy

The local economy is supported by manufacturing (particularly paper and machinery), healthcare, and the iconic Green Bay Packers NFL franchise. The median household income is near $64,000. Seasonal tourism also contributes to the local economy.

Lifestyle & Amenities

Green Bay is known for its passionate football culture, but also offers a scenic riverwalk, the National Railroad Museum, and various community festivals. Crime rates are below average for similarly sized cities, contributing to its reputation as a safe, tight-knit community.

9. Little Rock, Arkansas

Affordability Breakdown

Little Rock offers a median home price close to $200,000 and average rent around $1,175, with housing options ranging from downtown lofts to suburban family homes. Arkansas's cost-of-living index is approximately 87, with groceries, utilities, and healthcare costs about 12–15% below national medians.

Job Market & Economy

Key employment sectors include state government, the University of Arkansas for Medical Sciences (UAMS), and corporate headquarters like Dillard's. The median household income is around $63,000.

Lifestyle & Amenities

Little Rock provides urban perks such as the Clinton Presidential Library, the vibrant River Market District, and a growing arts scene. Pinnacle Mountain State Park offers nearby outdoor recreation. For those prioritizing lower crime rates and highly-rated schools, West Little Rock suburbs are often a popular choice.

10. Oklahoma City, Oklahoma

Affordability Breakdown

Oklahoma City (OKC) has a median home price around $237,000 and average rent about $1,366. The state benefits from some of the nation's lowest gasoline prices and auto insurance rates, significantly reducing transportation costs. The overall cost of living is approximately 15% below the U.S. average. Utilities are near average, as mild winters help balance higher AC usage in the summer.

Job Market & Economy

OKC's economy is diversified across energy, aerospace (Tinker Air Force Base), finance, and healthcare. The median household income hovers around $65,000.

Lifestyle & Amenities

The city is home to the NBA's Oklahoma City Thunder, the lively Bricktown entertainment district, and the beautiful Myriad Botanical Gardens. Other attractions include the Oklahoma City National Memorial & Museum. Crime rates are average for a city of its size, with suburbs like Edmond known for safer neighborhoods and good schools.

Methodology Explained

To compile this list of the top 10 cheapest cities in America for 2025, we undertook a comprehensive analysis. Our evaluation combined 2024–2025 data from several reputable sources:

• The Council for Community and Economic Research (C2ER) Cost of Living Index, which provides city-to-city comparisons for key consumer expenses.
• Real estate market data from Zillow and Redfin for median home prices and rental rates.
• Data from the U.S. Census Bureau and the Bureau of Labor Statistics for median household incomes, unemployment rates, and Consumer Price Index (CPI) information.
• U.S. News & World Report for quality of life metrics, including crime statistics (cross-referenced with FBI crime reports where possible) and school quality.
• Our proprietary Cost Living Explorer calculator was used for initial screening and to normalize various data points.

Each city was assessed on a range of factors including housing affordability (purchase and rent relative to local incomes), cost of everyday expenses (transportation, utilities, groceries, healthcare), and economic health (median household income, unemployment rate). We also factored in qualitative aspects such as crime rates, availability of cultural and recreational amenities, and educational opportunities to ensure the ranked cities offer not just low costs, but also a desirable living environment.

Finding Your Affordable American Dream

Choosing a new city is a significant decision, and while cost of living is a major factor, it's essential to balance it with job opportunities, lifestyle preferences, and community fit. The cities on this list demonstrate that it's possible to find affordable living in diverse regions across the United States, each offering unique advantages.

We encourage you to use this list as a starting point for your own research. Dive deeper into the cities that catch your eye, visit if possible, and connect with locals to get a true feel for the community. Don't forget to use tools like our Cost of Living Calculator to compare specific costs based on your personal circumstances.

What are your thoughts on these cities? Are there other affordable gems you believe should be on the radar? Share your insights and experiences in the comments below – your feedback helps our community of explorers!