The 10 Most Affordable Cities In America: What To Know

For many Americans, keeping a keen eye toward their cost of living is an integral part of daily life. With inflation being a very real concern and mortgage interest rates that aren’t quite as appealing as they have been in recent memory, frugal home shopping is top of mind for a lot of people.

As a result, many home shoppers are asking where to find the most affordable cities in America, and we’re here to help provide answers. Our analysis of this question was geared toward setting you up for success when it comes to your cost-conscious home search and includes information on:

Okay, let’s dive into which places in the United States will put the least strain on your budget if you decide to call them home.

1. Muskogee, Oklahoma

Nestled on the Arkansas River, Muskogee, Oklahoma is home to Bacone College as well as the Oklahoma School for the Blind. In addition to these institutions of higher education, Muskogee offers visitors and residents the Five Civilized Tribes Museum. This museum honors the five tribes that had their headquarters in Muskogee when it was founded in 1872. If you like education and history, Muskogee might not be a bad place to call home.

• Population: 36,760
• Median household income: $62,756
• Cost of living index: 78.7
• Median monthly rental price: $717

Considering calling Muskogee home? Check out homes for sale in Muskogee and Muskogee housing market trends.

2. Ashland, Ohio

If you find yourself southwest of Cleveland and northeast of Columbus and about halfway in between the two, you might be in Ashland, Ohio. Residents enjoy plentiful shopping options including both local and national retailers as well as a number of charming restaurants and parks. In addition, The Ashland Symphony Orchestra has been entertaining residents and tourists alike for more than 50 years.

• Population: 19,282
• Median household income: $73,246
• Cost of living index: 82.2
• Median monthly rental price: $748

Considering calling Ashland home? check out homes for sale in Ashland and Ashland housing market trends.

3. Ponca City, Oklahoma

Located near major metropolitan cities but featuring a small-town feel, Ponca City, Oklahoma, has a lot to offer prospective home buyers on a budget. Lake Ponca offers boating, swimming, sunbathing and other outdoor activities for the whole family to enjoy. Other attractions include the Ponca City Art Center, the Poncan Theatre, and the Lew Wentz Golf Course.

• Population: 24,398
• Median household income: $67,842
• Cost of living index: 85.5
• Median monthly rental price: $725

Considering calling Ponca City home? Check out homes for sale in Ponca City and Ponca City housing market trends.

4. Martinsville, Virginia

Best known for the NASCAR-sanctioned Martinsville Speedway, this Virginian town offers a ton of outdoor features like the Lauren Mountain Preserve and the Rock Ridge Trail. In addition, a vineyard and local brewery highlight the many shopping and dining options for residents and tourists in Martinsville.

• Population: 13,517
• Median household income: $54,725
• Cost of living index: 85.3
• Median monthly rental price: $648

Considering calling Martinsville home? Check out homes for sale in Martinsville and Martinsville housing market trends.

5. Decatur, Illinois

Located on picturesque Lake Decatur, this affordable Illinois city is growing fast. A robust educational system at all levels of learning as well as a bevy of outdoor locales make Decatur a great place to live at any stage of life.

• Population: 69,646
• Median household income: $76,180
• Cost of living index: 81.2
• Median monthly rental price: $719

Considering calling Decatur home? Check out homes for sale in Decatur and Decatur housing market trends.

6. Cookeville, Tennessee

East of Nashville west of Knoxville sits a charming little city called Cookeville, Tennessee. With a welcoming downtown and beautiful natural resources like woods and waterfalls, you’ll find yourself at home in this affordable mid-state locale.

• Population: 35,138
• Median household income: $63,586
• Cost of living index: 88.5
• Median monthly rental price: $768

Considering calling Cookeville home? Check out homes for sale in Cookeville and Cookeville housing market trends.

7. Statesboro, Georgia

For a town this small, Statesboro sure has a lot of activities to fill your time. With a waterpark, shops, restaurants, theaters and more, you’ll find plenty to do if you call Statesboro home. And with a low cost of living, you’ll have the spare cash you need for daily fun.

• Population: 33,399
• Median household income: $70,460
• Cost of living index: 83
• Median monthly rental price: $868

Considering calling Statesboro home? Check out homes for sale in Statesboro and Statesboro housing market trends.

8. Jackson, Tennessee

Jackson is sometimes referred to as a “hub city” since it is located in the midpoint of West Tennessee and is equidistant between Nashville and Memphis. Jackson's claim to fame is that it’s considered the birthplace of rockabilly music, so it’s no surprise that the entertainment scene is pretty robust.

• Population: 68,114
• Median household income: $67,270
• Cost of living index: 85.1
• Median monthly rental price: $827

Considering calling Jackson home? Check out homes for sale in Jackson and Jackson housing market trends.

9. Nacogdoches, Texas

If you like immersing yourself in history, you are going to love living in Nacogdoches, Texas. As the oldest town in the state, Nacogdoches offers an array of historical attractions including tea at a Victorian mansion, antique shops, and trail hikes on Native American trade routes. 

• Population: 32,118
• Median household income: $71,652
• Cost of living index: 87.1
• Median monthly rental price: $812

Considering calling Nacogdoches home? Check out homes for sale in Nacogdoches and Nacogdoches housing market trends.

10. Kokomo, Indiana

With a history built on innovation, especially in the automotive arena, Kokomo, Indiana, is often referred to as “the city of firsts.” Today, it boasts unique attractions like “Geek Street” where you can find collectables, cards, cubes, records and other nerdy delights.

• Population: 59,691
• Median household income: $73,500
• Cost of living index: 86.3
• Median monthly rental price: $790

Considering calling Kokomo home? Check out homes for sale in Kokomo and Kokomo housing market trends.

There you have it, the top ten most affordable cities based on our methodology (more on that below). Still looking for more options? No problem. Here are three more places that are pretty cost effective and popular. They didn't make the list based on our methodology, but they might be worth a look when you are searching for your next abode.

1. Kalamazoo, Michigan

Kalamazoo, Michigan, is a city that offers a little bit of everything for everyone. This includes nature trails, shopping, sports, and some of the best microbreweries in the country. In addition to all these great attractions and a low cost of living, your kids might not have to pay for college if they grow up in Kalamazoo! The Kalamazoo Promise, a local nonprofit organization, will cover 100% of the tuition to an in-state college or university for students who graduate from Kalamazoo public schools.  

• Population: 76,009
• Median household income: $85,156
• Cost of living index: 76.8
• Median monthly rental price: $891

Considering calling Kalamazoo home? Check out homes for sale in Kalamazoo and Kalamazoo housing market trends.

2. Buffalo, New York

If you like a place that’s affordable but bustling with plenty to do, then Buffalo, New York, might just be the place to call home. With professional sports franchises, Niagara Falls, a vibrant music scene, and much, much more, Buffalo is a city that never sleeps. At the same time, Buffalo won’t keep you awake worrying about how much money you spend to live there.

• Population: 254,479
• Median household income: $83,099
• Cost of living index: 95.7
• Median monthly rental price: $871

Considering calling Buffalo home? Check out homes for sale in Buffalo and Buffalo housing market trends.

3. Erie, Pennsylvania

Located on the south end of Lake Erie, the city of Erie, Pennsylvania, offers a picturesque setting that won't break the bank when it comes to affordability. Whether it’s a sailing regatta in the summer or cross-country skiing through miles of trails in the winter, Erie is known for being a great setting for an active, fun, outdoor lifestyle.

• Population: 95,000
• Median household income: $74,780
• Cost of living index: 89.2
• Median monthly rental price: $787

Considering calling Erie home? Check out homes for sale in Erie and Erie housing market trends.

It’s important to keep in mind that affordability is just one factor to consider when deciding where to live. If price was the only factor, deciding where to hang your hat would be pretty simple, right? Of course, there are slew of other factors that go into deciding where to live. Here are a few that you might consider:

• Safety: No home can feel like the right one if you don’t feel safe in it. Make sure to research how safe a city or neighborhood is before deciding to move there.
• Job opportunities: It’s going to be hard to pay that mortgage if you don't have a job. Before you move somewhere, make sure the job market in your specific field provides the professional opportunities you need.
• Transportation: Walkability, parking, and the availability of public transit are key factors to consider as well.

Finding your next place to live can be an exciting endeavor. There are many factors to consider, all specific to your unique wants, needs, and situation. If affordability is near the top of your list, hopefully the information provided here helped spark some ideas.

Ready to get moving? Apply for a mortgage online with the Home Loan Experts at Rocket Mortgage^® today!

Rocket Homes collected and analyzed the most recent data on seven key local and countywide metrics to give us insight into the top most affordable metro areas. We analyzed the 300 metro areas across the US, which have Rocket Homes listings. The metrics used in this study include the violent crime rate, property crime rate, cost of living index, median rent, median yearly income, home appreciation, median home value, and Freddie Mac primary mortgage market survey interest rates. Some of these metrics were then used to calculate home affordability index. These metrics were chosen based on public data availability and topical relevancy. Metrics from the U.S. Census are based on 2021 ACS 5-year estimates.

The home affordability index was calculated using median home value for homes in that metro area, interest rate from Freddie Mac primary mortgage market survey, and median yearly income. To interpret the indices, a value equal to or greater than 1 means that the average person has enough income to qualify for a mortgage in that area. The calculation assumes a down payment of 20% of the home price and a qualifying ratio of 25%.

Each data category was normalized and transformed into a range of points for scoring and comparison. Cities with violent crime rates greater than or equal to 55 and property crime rates greater than or equal to 65 were removed from the ranking. Weights were then applied to each metric depending on their individual importance in the study. The weighted scores for each metric were summed to create the overall Most Affordable City Score for each city. The final scores are sorted to produce the final rankings.

Other metrics considered without weight: