Why I Built This List (From Miami Beach)
I live in Miami Beach. My rent is absurd. My grocery bill is absurd. My car insurance is absurd. Everything costs more here than it should, and I know this because I have spent the last decade analyzing financial data for a living -- first as a hedge fund manager at Global Speculation LP, then as a 300+ article contributor to Seeking Alpha, and now as a Salesforce developer who moonlights as a personal finance nerd.
I chose Miami Beach because I love the ocean, the weather, and the energy. But I am under no illusion that it is a financially optimal decision. Every dollar I spend on Miami Beach rent is a dollar that could be compounding in an index fund. The math does not lie: living in a LCOL city in your 20s and 30s can put you 5-10 years ahead on the path to financial independence.
This list is my honest assessment of the 25 cheapest places to live in America, scored on three dimensions: raw affordability (housing costs, rent, cost of living index), quality of life (culture, recreation, safety, weather), and job market (employment opportunities, salary levels, growth trajectory). Because a cheap city with no jobs and nothing to do is not actually cheap -- it just has low rent.
25
Cities Ranked
$120K
Lowest Median Home
80-91
COL Index Range
/30
Scoring System
The Rankings
25 cities. 3 ratings each. Scored by someone who pays Miami Beach prices and feels the pain daily.
Wichita, KS
23/30MidwestNotable Features
Aviation capital of the world (Textron, Spirit AeroSystems, Airbus). No state income tax on manufacturing. 15-minute commutes. Keeper of the Plains landmark.
Overview
Wichita is the largest city in Kansas and the undisputed king of affordability in America. A median home price of $172K means a couple earning the median household income can comfortably buy a three-bedroom house with a yard. The aviation industry provides a stable blue-collar and engineering job base, and the cost of living sits 16% below the national average. You will not find nightlife rivaling Austin or cultural scenes matching Nashville, but you will find a mortgage payment that does not make you cry.
Glen's Take
If I were 22 again and optimizing purely for wealth accumulation, I would seriously consider Wichita. A $172K house on a $55K income means you can save 40-50% of your paycheck and hit FIRE in your 30s. The tradeoff is obvious -- it is not Miami Beach. But financial freedom buys you the option to live anywhere later. Front-load the savings in a cheap city, then move somewhere fun when your portfolio sustains it.
Oklahoma City, OK
23/30SouthNotable Features
Thunder NBA team. Booming energy sector. Bricktown entertainment district. One of the fastest-growing metros in the Midwest. Excellent BBQ and Tex-Mex.
Overview
Oklahoma City delivers a rare combination: big-city amenities at small-city prices. The metro population tops 1.4 million, giving you professional sports, a legitimate restaurant scene, and a diversified economy anchored by energy, aerospace, and healthcare. The cost of living index of 86 means your dollar goes 14% further than the national average. OKC has been quietly booming for a decade, with major downtown revitalization and Thunder basketball culture injecting real energy into the city.
Glen's Take
OKC is the sleeper pick on this list. It has the cultural infrastructure of a much more expensive city -- an NBA team, a walkable downtown, and a food scene that punches way above its weight. The energy sector means jobs cycle with oil prices, but the diversification into healthcare and tech has smoothed that out. I have a soft spot for cities that are clearly on the upswing but have not been priced in yet. OKC is that city.
Huntsville, AL
25/30SouthNotable Features
NASA Marshall Space Flight Center. Redstone Arsenal. Massive tech and defense corridor. U.S. Space and Rocket Center museum. Fastest-growing city in Alabama.
Overview
Huntsville is the most interesting city on this list from an economic perspective. It houses NASA's Marshall Space Flight Center, the FBI's operational technology division, and a sprawling defense and aerospace corridor that draws engineers from across the country. The median household income of $62,800 is high relative to the cost of living. Home prices have risen but remain affordable compared to other tech hubs. You get a PhD-dense population, excellent schools, and a growing downtown -- all at Alabama prices.
Glen's Take
Huntsville is the closest thing to a cheat code for engineers. You get Purdue-level STEM jobs at Alabama cost-of-living prices. A Purdue grad with an engineering degree could land a $90K defense job here and buy a house for $268K. Try doing that in the Bay Area. The income-to-cost ratio in Huntsville is arguably the best in America for technical workers. If I were advising a young engineer, this would be my number one recommendation.
Memphis, TN
22/30SouthNotable Features
FedEx world headquarters. Beale Street and the birthplace of blues and rock & roll. World-class BBQ. No state income tax. St. Jude Children's Research Hospital.
Overview
Memphis offers some of the lowest housing costs of any major American city. A median home price of $155K puts homeownership within reach for nearly anyone with a steady job. Tennessee has no state income tax, which effectively gives you a 5-7% raise compared to states that do. The cultural heritage is unmatched -- Beale Street, Sun Studio, Graceland -- and the BBQ alone is worth the move. FedEx headquarters anchors the economy alongside healthcare and logistics.
Glen's Take
Memphis is a tale of two cities. The affordability numbers are insane -- a $155K median home price in a city of 633,000 people with no state income tax. But the lower median income and higher crime rates in certain areas are real tradeoffs. If you do your homework on neighborhoods and lock in a cheap house, the savings potential is enormous. The no-income-tax advantage alone saves a household earning $80K about $4,000-6,000 per year compared to a state like California.
Louisville, KY
23/30SouthNotable Features
Kentucky Derby and Churchill Downs. Bourbon Trail epicenter. UPS Worldport (largest automated package handling facility). Vibrant NuLu and Bardstown Road districts.
Overview
Louisville blends Southern charm with Midwestern affordability and a surprising cultural depth. The bourbon industry is a genuine economic engine, the food scene has exploded with James Beard-nominated restaurants, and the Kentucky Derby brings global attention every May. UPS Worldport provides a massive logistics employment base. Housing at $215K median puts you in a solid neighborhood with character -- Victorian shotgun houses, Craftsman bungalows, or newer suburban builds.
Glen's Take
Louisville is the city that keeps surprising me. Every time someone moves there, they rave about the food, the bourbon culture, and the neighborhoods. A $215K house in a city with this much personality is genuinely hard to find elsewhere. The job market is solid if not spectacular -- UPS, Humana, and bourbon distilleries are the anchors. But the real value proposition is the lifestyle-to-cost ratio. You are living like a $150K earner in a coastal city on a $60K salary here.
San Antonio, TX
23/30SouthNotable Features
The Alamo. River Walk. Five military installations including Joint Base San Antonio. Spurs NBA team. Massive healthcare and cybersecurity sectors. No state income tax.
Overview
San Antonio is the seventh-largest city in America and one of the cheapest big cities you will find. With 1.58 million people, you get big-city infrastructure -- an international airport, professional sports, world-class healthcare, and a diversified economy -- at prices that would make Austin residents weep. No state income tax in Texas. The military presence provides a stable employment floor, and the cybersecurity and healthcare sectors are growing rapidly.
Glen's Take
San Antonio is the value play of Texas. Austin got all the hype (and the price hikes), but San Antonio has been quietly delivering a better cost-adjusted lifestyle. No state income tax plus a $248K median home price in a city of 1.58 million people is absurd value. The River Walk is legitimately beautiful, the food (especially Tex-Mex) is elite, and the military bases mean the economy does not crater during recessions. If you want Texas without the Austin premium, this is it.
Tulsa, OK
23/30SouthNotable Features
Tulsa Remote program pays you $10K to move there. Art Deco architecture. Gathering Place (world-class public park). Growing tech scene. Oil capital history.
Overview
Tulsa made national headlines with its Tulsa Remote program, which literally pays remote workers $10,000 to relocate. But even without the signing bonus, Tulsa delivers serious affordability. A $178K median home price and cost of living 15% below the national average mean your remote salary from a coastal tech company goes dramatically further. The Gathering Place park is genuinely world-class, the Art Deco architecture downtown is stunning, and the food scene has been growing fast.
Glen's Take
Tulsa Remote is the most brilliant economic development program in America. They figured out that paying remote workers $10K to move there generates way more tax revenue and economic activity than the $10K costs. If you work remotely and earn $80K+, moving to Tulsa and pocketing the $10K bonus while cutting your housing costs by 60% compared to a coastal city is free money. The arbitrage between remote salaries and Tulsa cost of living is enormous.
Knoxville, TN
22/30SouthNotable Features
Gateway to Great Smoky Mountains. University of Tennessee. Oak Ridge National Laboratory. No state income tax. Outdoor recreation paradise.
Overview
Knoxville sits at the doorstep of the Great Smoky Mountains, the most visited national park in America. The University of Tennessee provides a college-town energy with SEC football Saturdays that rival any in the country. Oak Ridge National Laboratory is a major employer for STEM workers. Tennessee's no-income-tax policy sweetens every paycheck. The outdoor recreation -- hiking, kayaking, fishing, mountain biking -- is world-class and essentially free.
Glen's Take
Knoxville is the outdoors person's LCOL paradise. If your idea of a good weekend involves hiking in the Smokies rather than hitting rooftop bars, Knoxville gives you that lifestyle at a fraction of what Colorado or the Pacific Northwest costs. The no-income-tax advantage in Tennessee is real and often underestimated. On a $70K salary, that is $3,500-5,000 extra per year compared to states with 5-7% income tax. Compound that over a decade and you are talking serious money.
Little Rock, AR
22/30SouthNotable Features
State capital with government jobs. Dillard's and Stephens Inc. headquarters. Clinton Presidential Library. Emerging food scene. Big Dam Bridge cycling.
Overview
Little Rock is one of America's most underrated affordable cities. As the Arkansas state capital, it offers a stable government employment base plus corporate headquarters like Dillard's, Stephens Inc., and Windstream. The median home price of $165K is jaw-dropping for a state capital. The cost of living index of 83 means your money goes 17% further than the national average. The River Market district has been revitalized, and the cycling infrastructure along the Arkansas River Trail is legitimately excellent.
Glen's Take
Little Rock flies so far under the radar that most people forget it exists, which is exactly why it is so cheap. A $165K median home in a state capital with a diversified economy is objectively great value. The tradeoff is limited nightlife and cultural offerings compared to larger cities. But if you are in accumulation mode -- saving aggressively to hit FIRE -- the math here is compelling. A couple earning $90K combined can save $30K+ per year while living comfortably.
Kansas City, MO
23/30MidwestNotable Features
Chiefs Super Bowl dynasty. World-famous BBQ. Cerner (now Oracle Health) HQ. Sprint Center concerts. Power & Light entertainment district.
Overview
Kansas City has become one of America's hottest mid-tier cities thanks to the Chiefs dynasty and a genuine cultural renaissance. Despite the buzz, housing remains remarkably affordable at $238K median. The BBQ scene is legendary (Joe's KC, Q39, Slap's). The tech sector is growing with Cerner (now Oracle Health) as an anchor. The Power & Light district provides walkable nightlife, and the Crossroads Arts District has emerged as a legitimate creative hub. All this at a cost of living 11% below the national average.
Glen's Take
Kansas City is my favorite city on this list for the overall package. You get professional sports (Chiefs, Royals, Sporting KC), world-class BBQ, a real downtown scene, and a growing tech sector -- all for $238K median housing. The Chiefs Super Bowl runs have put KC on the cultural map in a way that will drive long-term growth. I would not be surprised if home prices here appreciate faster than the national average over the next decade. Buy now while it is still cheap.
Indianapolis, IN
22/30MidwestNotable Features
Indy 500. Colts and Pacers. Salesforce (formerly ExactTarget) tower. Eli Lilly HQ. Massive convention industry. Monument Circle downtown.
Overview
Indianapolis is the largest city in Indiana and punches above its weight in both affordability and amenities. The Indy 500 is a global event. Eli Lilly headquarters anchors the pharmaceutical sector. Salesforce Tower (formerly ExactTarget) represents a growing tech presence. The convention industry brings billions annually. All of this in a city where the median home costs $230K and the cost of living sits 12% below the national average. Mass Ave and Fountain Square provide walkable, hip neighborhoods.
Glen's Take
As a Purdue grad, I have a bias here -- but the data backs it up. Indianapolis offers a genuine big-city experience at Midwest prices. Eli Lilly alone employs 10,000+ people at above-average salaries, and the Salesforce presence has seeded a tech ecosystem. The Indy 500 is one of the great American experiences. The flat tax rate in Indiana (3.05%) is one of the lowest in the country. For Purdue and IU grads who want to stay in-state, Indy is the obvious play.
Birmingham, AL
22/30SouthNotable Features
UAB Medical Center (largest employer in Alabama). Civil Rights landmarks. James Beard-winning food scene. Emerging tech/startup culture. Vulcan statue.
Overview
Birmingham has the lowest median home price on this list at $148K, making it the most affordable entry point to homeownership for anyone on a modest income. UAB Medical Center is the largest employer in Alabama and a nationally ranked hospital system. The food scene has exploded -- Frank Stitt's Highlands Bar and Grill won the James Beard Award for Outstanding Restaurant. The civil rights history gives the city a cultural depth that most affordable cities lack. The Lakeview and Avondale districts have been completely transformed.
Glen's Take
Birmingham is the ultimate accumulation city. At $148K median home price, a single person earning $50K can buy a house, max out their 401k, and still have money left over. That is nearly impossible in any coastal city. The UAB medical campus is a genuine economic engine that provides recession-resistant employment. The food scene is shockingly good for a city this cheap. The lower median income reflects the broader Alabama economy, but if you have a remote job or work at UAB, the arbitrage is massive.
Fort Wayne, IN
22/30MidwestNotable Features
Second-largest city in Indiana. Three rivers confluence. Sweetwater Sound (world's largest music instrument retailer). Growing downtown with The Landing.
Overview
Fort Wayne is quietly one of the best-kept secrets in the Midwest. A $175K median home and $850 rent in a city of 264,000 people is exceptional value. The three rivers (St. Joseph, St. Marys, Maumee) provide beautiful natural geography. Sweetwater Sound, the world's largest online music instrument retailer, is headquartered here and growing fast. The downtown revitalization around Promenade Park and The Landing has transformed the riverfront into a legitimate destination.
Glen's Take
I went to Purdue, so I know Indiana well. Fort Wayne is the value pick of the state -- cheaper than Indianapolis with a genuinely improving downtown. Sweetwater is an incredible company that keeps growing and hiring. The cost of living index of 82 means your dollar stretches 18% further than the national average. For someone working remotely, Fort Wayne offers a comfortable middle-class lifestyle on a salary that would barely cover rent in a coastal city.
El Paso, TX
21/30SouthNotable Features
Safest large city in America for decades. No state income tax. Fort Bliss military base. Bilingual culture. 300+ days of sunshine. Mexican food paradise.
Overview
El Paso is consistently ranked as one of the safest large cities in America, which is remarkable given its border location. With 300+ days of sunshine, no state income tax, and a median home price under $200K, it offers a lifestyle that feels more like the Southwest than Texas. Fort Bliss provides a massive military employment base. The food -- particularly Mexican and Tex-Mex -- is authentic and cheap. The bilingual, bicultural atmosphere gives the city a unique character that no other affordable city can match.
Glen's Take
El Paso is the most underrated city in Texas. Everyone talks about Austin, Dallas, Houston, and San Antonio, but El Paso quietly delivers 300 days of sunshine, the safest streets of any large city in America, and no state income tax -- all at $195K median housing. The isolation from other major metros is the main tradeoff. You are 4+ hours from the nearest big Texas city. But if you value sunshine, safety, and savings over nightlife and networking, El Paso is objectively excellent.
Shreveport, LA
19/30SouthNotable Features
Barksdale Air Force Base. Casinos and entertainment. Proximity to Dallas (3 hours). Cajun and Southern cuisine. Red River waterfront.
Overview
Shreveport offers some of the cheapest housing in America at $135K median. The cost of living index of 81 means your dollar goes nearly 20% further than the national average. Barksdale Air Force Base provides a stable military employment anchor. The casino industry brings tourism dollars. You are three hours from Dallas if you need a big-city fix. The Cajun and Southern food traditions run deep, and the Red River waterfront has seen modest revitalization efforts.
Glen's Take
Shreveport is pure affordability play. At $135K median home price, you can buy a house on a $35K salary and still have room to invest. The tradeoff is real -- the local economy has been shrinking, and the job market is thin outside of the military base and healthcare. But for remote workers or retirees who want to stretch a fixed income, the math is hard to beat. Every dollar you do not spend on housing is a dollar that compounds in your portfolio.
Columbia, SC
22/30SouthNotable Features
State capital. University of South Carolina. Fort Jackson (largest Army training installation). Lake Murray recreation. Emerging craft beer scene.
Overview
Columbia is the state capital of South Carolina and home to the University of South Carolina, which gives it a perpetual college-town energy. Fort Jackson, the largest Army initial entry training installation, provides a steady military economic base. The Congaree River and Lake Murray offer excellent outdoor recreation. As a state capital, Columbia has a diversified employment base across government, education, healthcare, and military. The Vista and Five Points neighborhoods provide walkable dining and entertainment.
Glen's Take
Columbia is the kind of city where you can buy a house, enjoy SEC football Saturdays, kayak on the Congaree, and still have money left over for aggressive investing. The state capital designation means the government job base is not going anywhere. The University of South Carolina keeps the city young and culturally active. At $205K median home price in a city with warm weather and no brutal winters, it is solid value for anyone who wants Southern charm without Charleston prices.
Omaha, NE
22/30MidwestNotable Features
Warren Buffett's hometown. Berkshire Hathaway HQ. Mutual of Omaha. TD Ameritrade (Schwab). Henry Doorly Zoo (world-class). College World Series.
Overview
Omaha is Warren Buffett's hometown, and the Oracle has stayed here for a reason -- the value proposition is excellent. Berkshire Hathaway, Mutual of Omaha, and TD Ameritrade (now Schwab) headquarters mean serious financial-sector jobs. The Henry Doorly Zoo is genuinely world-class. The College World Series brings the city alive every June. A $235K median home price with a $59,400 median income gives Omaha one of the best income-to-housing ratios on this list. The Old Market district provides a charming downtown experience.
Glen's Take
If it is good enough for Warren Buffett, it is good enough for you. I am not even joking -- the man is worth $130 billion and chooses to live in Omaha in a house he bought for $31,500 in 1958. The financial sector presence means there are legitimate high-paying jobs here. The income-to-cost ratio ($59K income vs. $235K homes) is among the best on this list. Omaha is the most financially literate city in America by proximity alone. The annual Berkshire shareholder meeting is worth the move by itself.
Lexington, KY
22/30SouthNotable Features
Horse capital of the world. University of Kentucky. Bourbon distilleries. Bluegrass scenery. Keeneland Race Course. Growing tech sector.
Overview
Lexington is the horse capital of the world, and the rolling Bluegrass countryside surrounding the city is genuinely breathtaking. The University of Kentucky provides a strong economic and cultural anchor. The bourbon industry is booming, and Lexington sits at the heart of the Bourbon Trail. Keeneland Race Course is one of the most beautiful sporting venues in America. The cost of living sits 11% below the national average, and the city has a polished, educated feel that punches above its price point.
Glen's Take
Lexington is Louisville's more refined sibling. The Bluegrass scenery is legitimately stunning -- rolling green hills and horse farms that look like they belong in a movie. The University of Kentucky keeps the city young and provides a pipeline of educated workers. At $250K median home price, it is slightly pricier than some cities on this list but delivers a noticeably higher quality of life. The bourbon culture alone makes it worth considering. I have never met anyone who regretted moving to Lexington.
Jackson, MS
19/30SouthNotable Features
State capital. University of Mississippi Medical Center. Blues music heritage. Fondren District arts scene. Lowest housing costs on this list.
Overview
Jackson has the lowest median home price on this entire list at $120K and a cost of living index of 80 -- meaning your dollar goes 20% further than the national average. As the Mississippi state capital, it has a stable government employment base. The University of Mississippi Medical Center is the state's only academic medical center and the largest employer. The Fondren District has emerged as an arts and dining hub. The blues heritage runs deep, connecting to the broader Mississippi Delta cultural legacy.
Glen's Take
Jackson is the most affordable city in America, full stop. A $120K median home price means you can buy a house with a 15-year mortgage for less than most people pay in rent. The tradeoffs are real -- lower incomes, infrastructure challenges, and limited job diversity outside government and healthcare. But for remote workers or anyone with location-independent income, Jackson offers the absolute maximum dollar stretch. Every dollar not spent on housing is a dollar that compounds at 10% per year in an index fund.
Sioux Falls, SD
23/30MidwestNotable Features
No state income tax. Falls Park. Sanford Health (major employer). Lowest unemployment in America. Extremely low crime. Sculpture Walk.
Overview
Sioux Falls consistently ranks among the best places to live in America for good reason. South Dakota has no state income tax, no corporate income tax, and no personal property tax. The unemployment rate hovers around 2% -- effectively full employment. Sanford Health and the financial services sector provide a strong job base. Falls Park is a stunning natural centerpiece. The city is safe, clean, and growing. The median household income of $63,400 is the highest on this list relative to housing costs.
Glen's Take
Sioux Falls is the highest-income city on this list relative to costs. A $63K median income against $280K housing with zero state income tax gives you incredible savings potential. The 2% unemployment rate means anyone who wants a job can get one. The winters are brutal -- I will not sugarcoat that -- but the financial math is undeniable. If you can handle six months of cold, you are rewarded with one of the best income-to-expense ratios in America. It is basically the anti-Miami Beach.
Chattanooga, TN
22/30SouthNotable Features
Gigabit internet citywide (EPB Fiber). Outdoor recreation mecca. Tennessee Aquarium. No state income tax. Lookout Mountain. Rock climbing destination.
Overview
Chattanooga is the only city in America with a municipal gigabit fiber internet network, making it a magnet for remote workers. The outdoor recreation is extraordinary -- rock climbing at Sunset Rock, hiking on Lookout Mountain, kayaking on the Tennessee River. The Tennessee Aquarium and Coolidge Park anchor a revitalized waterfront. No state income tax applies. The combination of gigabit internet, outdoor lifestyle, and Tennessee tax advantages has made Chattanooga one of the fastest-growing small cities in the Southeast.
Glen's Take
Chattanooga is the remote worker's dream city. Municipal gigabit fiber internet, no state income tax, world-class outdoor recreation, and housing under $275K. If I worked remotely and loved the outdoors, this would be my top pick. The gigabit internet is not marketing fluff -- EPB Fiber actually delivers 1 Gbps symmetrical for about $70/month. Try getting that from Comcast. The combination of fast internet, low taxes, and mountain access is genuinely unique.
Des Moines, IA
22/30MidwestNotable Features
Insurance capital of the world. Principal Financial, EMC Insurance, Nationwide. East Village renaissance. Iowa State Fair. Strong public schools.
Overview
Des Moines is the insurance capital of the world, with Principal Financial Group, EMC Insurance, and Nationwide all maintaining major operations. The financial and insurance sectors provide stable, above-average salaries. The East Village neighborhood has been completely transformed into a walkable district with restaurants, shops, and nightlife. The Iowa State Fair is an annual cultural institution. Housing at $220K median with a $58,700 median income gives one of the better affordability ratios on this list.
Glen's Take
Des Moines is the boring-in-a-good-way pick. The insurance industry provides stable, well-paying jobs that do not disappear during recessions. People actually need insurance no matter what the economy does. The income-to-housing ratio here is excellent. The East Village revival proves that even Midwestern cities can build walkable, interesting neighborhoods. The winters are cold, but you will barely notice from inside your fully-paid-off house while your coastal friends are still renting.
Augusta, GA
22/30SouthNotable Features
Home of The Masters (Augusta National). Fort Eisenhower (formerly Fort Gordon, Army Cyber Command). Growing cybersecurity hub. Savannah River recreation.
Overview
Augusta is globally famous as the home of The Masters golf tournament, but the real story is the massive Army Cyber Command presence at Fort Eisenhower (formerly Fort Gordon). The cybersecurity and intelligence community is building a significant hub here, creating high-paying technical jobs in one of the cheapest housing markets in the Southeast. A median home price of $158K in a city with a growing tech-defense sector is remarkable value. The Savannah River provides beautiful natural scenery.
Glen's Take
Augusta is the Huntsville of Georgia -- a military-tech hub with cheap housing. The Army Cyber Command relocation to Fort Eisenhower is creating a cybersecurity corridor that will drive wages up while housing remains cheap. If you are in cybersecurity or defense tech, Augusta offers the same arbitrage as Huntsville: coastal-adjacent salaries with deep-South housing costs. The Masters brings global prestige that no other affordable city can match. Just do not try to get dinner reservations during tournament week.
Fayetteville, AR
22/30SouthNotable Features
University of Arkansas. Walmart HQ nearby (Bentonville). Tyson Foods nearby. Razorback Trail cycling. Ozark Mountains access. Crystal Bridges Museum.
Overview
Fayetteville and the broader Northwest Arkansas region have been one of America's best-kept secrets. Walmart's headquarters in nearby Bentonville has attracted a massive ecosystem of vendors, suppliers, and corporate offices. Tyson Foods and J.B. Hunt are also headquartered in the region. The University of Arkansas provides cultural energy. The Razorback Greenway offers 36 miles of connected cycling trails. Crystal Bridges Museum of American Art (funded by the Walton family) is world-class. All of this in the scenic Ozark Mountains.
Glen's Take
Northwest Arkansas is the most underrated region in America for the overall package. The Walton family has essentially built a corporate campus disguised as a region -- Crystal Bridges Museum, miles of mountain biking trails, and a food scene that keeps improving. The proximity to Walmart HQ means every major CPG company has an office nearby, creating a surprisingly diverse job market. The Ozark scenery is beautiful and the outdoor recreation is excellent. Fayetteville is the college-town anchor of a region that is going to keep growing.
Dayton, OH
21/30MidwestNotable Features
Birthplace of aviation (Wright Brothers). Wright-Patterson Air Force Base. National Museum of the US Air Force (free). University of Dayton. Five Rivers MetroParks.
Overview
Dayton is the birthplace of aviation and home to Wright-Patterson Air Force Base, one of the largest and most important military installations in the country. The National Museum of the United States Air Force is free and genuinely world-class. The University of Dayton provides a private-university anchor. Five Rivers MetroParks is an outstanding park system. At $140K median home price, Dayton offers some of the cheapest urban housing in the Midwest. The cost of living index of 81 stretches every dollar nearly 20% further.
Glen's Take
Dayton is the value investor's city. It has been beaten down (the population has declined from its peak), but the fundamentals -- Wright-Patterson, the university, the park system -- are solid. At $140K median housing, you can buy a house outright in your 20s if you save aggressively for a few years. The Air Force base provides recession-proof employment, and the defense contractors in the area (L3Harris, SAIC, Northrop Grumman) pay competitive salaries. Dayton is a turnaround story waiting to happen.
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Frequently Asked Questions
What is the cheapest place to live in the United States in 2026?
Jackson, Mississippi has the lowest median home price on our list at $120,000 and a cost of living index of 80 (20% below the national average). However, the 'cheapest' city depends on your priorities. If you factor in quality of life and job market alongside raw affordability, cities like Wichita, Oklahoma City, and Huntsville offer a better overall value proposition. The best cheap city for you depends on your career, lifestyle preferences, and what tradeoffs you are willing to make.
How much money can you save by living in a low cost of living city?
The savings can be enormous. Consider a household earning $80,000/year. In Miami Beach (cost of living index ~128), housing alone consumes $2,400-3,200/month in rent. In Wichita (index 84), comparable housing costs $895-1,100/month. That is $1,500-2,100/month in housing savings alone -- $18,000-25,000 per year. Add in lower grocery, transportation, and entertainment costs, and a LCOL city can save you $25,000-40,000 annually compared to a high-cost coastal city. Invested at 10% annual returns over 20 years, that difference compounds to $1.4-2.3 million.
Are cheap cities cheap because there are no jobs?
Not necessarily. Several cities on this list have strong, growing economies. Huntsville has NASA and a massive defense corridor. Oklahoma City has energy, aerospace, and healthcare. San Antonio has military bases, cybersecurity, and healthcare. Sioux Falls has near-zero unemployment. The rise of remote work has also decoupled salary from location -- you can earn a San Francisco salary while paying Tulsa rent. That said, some of the cheapest cities (Jackson, Shreveport, Dayton) do have weaker local job markets, which is partly why they are so affordable.
Is it worth moving from a high cost of living city to save money?
It depends on your career and financial goals. If you work remotely and earn the same salary regardless of location, moving from a HCOL to LCOL city is essentially giving yourself a 30-50% raise in purchasing power. If your career requires a specific city (finance in NYC, tech in SF, entertainment in LA), the geographic premium may be worth paying for the career upside. The sweet spot for many people is living in a LCOL city during their accumulation years (20s-30s), building wealth aggressively, then having the financial freedom to live anywhere later.
What states have no income tax?
Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire (dividends and interest only until 2025, then fully no income tax), South Dakota, Tennessee, Texas, Washington, and Wyoming. Several cities on this list benefit from this: Memphis and Knoxville (Tennessee), San Antonio and El Paso (Texas), Sioux Falls (South Dakota). The no-income-tax advantage saves a household earning $80,000 roughly $3,000-6,000 per year compared to states with 5-7% income tax rates. Over a 20-year career, that compounds to $100,000-200,000 in additional wealth.
What is a cost of living index and how does it work?
A cost of living index compares the overall expense of living in one area versus the national average, which is set at 100. A city with an index of 85 means living there costs 15% less than the national average. The index typically includes housing (the biggest factor, weighted ~30%), groceries, transportation, healthcare, and utilities. On this list, Jackson, Mississippi has the lowest index at 80 (20% cheaper than average) while Sioux Falls has the highest at 91 (still 9% cheaper than average). For comparison, Miami Beach is around 128 and San Francisco is around 180.
What are the hidden costs of living in a cheap city?
Cheap cities often have tradeoffs that do not show up in the cost of living index. Lower cultural amenities may mean you spend more on travel to visit concerts, museums, or restaurants in bigger cities. Fewer direct flights from smaller airports can make air travel more expensive and time-consuming. Some cheap cities have higher car insurance rates due to local factors. Healthcare options may be more limited, potentially requiring travel for specialized care. Property taxes vary dramatically -- Texas has no income tax but high property taxes (2-2.5% of home value annually). Always calculate the total financial picture, not just rent and home prices.
How do I decide which cheap city is right for me?
Start with three questions: (1) Can I work remotely, or do I need local employment? If you need a local job, prioritize cities with strong job markets in your field (Huntsville for engineering, Omaha for finance, San Antonio for healthcare/military). (2) What lifestyle non-negotiables do I have? If you need outdoor recreation, look at Knoxville, Chattanooga, or Fayetteville. If you want pro sports and nightlife, consider Kansas City or Oklahoma City. (3) What is my weather tolerance? Midwest cities are cheap partly because winters are harsh. Southern cities offer warmth but may have humidity. Run the numbers on the FIRE calculator to see how each city affects your retirement timeline.
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