Where Single Adults Can Stretch Their Budget: The 20 Most Affordable U.S. States

Planning a relocation but worried about expenses skyrocketing? If you’re a single adult looking to maximize purchasing power while minimizing financial strain, choosing where to live matters enormously. A comprehensive analysis by GOBankingRates reveals exactly which regions offer the lowest cost of living states for single-person households.

The research examined monthly expenditures across six key categories—groceries, healthcare, utilities, transportation, housing, and miscellaneous expenses—to determine total cost of living in each state. The results show a striking disparity: the most affordable state costs nearly 10% less than the most expensive markets.

The Geography of Affordability: Where Your Dollar Stretches Furthest

The lowest cost of living states cluster predominantly in the South and Great Plains regions. Oklahoma claims the top spot with an overall index of 86.2, followed closely by Mississippi (86.3) and Kansas (87.1). Interestingly, these ultra-affordable markets share common traits: lower housing costs, reasonable utility bills, and modest transportation expenses.

West Virginia, Alabama, and Missouri round out the bottom tier, each with indices hovering between 87.7 and 88.5. Moving slightly higher up the affordability scale, Arkansas (89.0), Tennessee (90.3), and Iowa (90.3) still represent excellent value for budget-conscious single adults.

Breaking Down the Numbers: Where You’ll Save the Most

The Housing Factor

Mortgage payments often consume the largest portion of monthly budgets. In West Virginia, the average mortgage sits at just $981.01—nearly half the national average. Mississippi follows at $1,087.15, while Oklahoma’s average comes in at $1,239.21. Compare this to Wyoming’s $2,076.56 or Georgia’s $1,992.76, and the regional advantage becomes apparent.

Food and Daily Essentials

Grocery costs remain relatively consistent across the lowest cost of living states, ranging from $321 to $347 monthly. Louisiana emerges as the most economical at $323.08, while Wyoming’s groceries average $347.91. Healthcare expenses vary more dramatically—Louisiana offers competitive rates at $336.07, while Kentucky’s average drops to just $285.00.

Transportation and Utilities

Transportation expenses fluctuate based on urban density and public transit availability. Tennessee offers the lowest at $647.58, whereas Illinois tops out at $751.99 among the affordable states. Utility costs generally favor plains and southern states, with Louisiana’s $243.11 representing the lowest monthly bill.

The Complete Ranking: Your Guide to Maximum Affordability

Tier 1: Ultra-Affordable (Index 86-87)

1. Oklahoma (86.2) - Groceries: $321.04 | Healthcare: $315.30 | Utilities: $284.21 | Transportation: $676.06 | Mortgage: $1,239.21
2. Mississippi (86.3) - Groceries: $330.56 | Healthcare: $335.05 | Utilities: $248.90 | Transportation: $640.28 | Mortgage: $1,087.15
3. Kansas (87.1) - Groceries: $330.56 | Healthcare: $329.94 | Utilities: $308.52 | Transportation: $657.81 | Mortgage: $1,363.63
4. West Virginia (87.7) - Groceries: $334.64 | Healthcare: $328.92 | Utilities: $276.97 | Transportation: $686.28 | Mortgage: $981.01

Tier 2: Highly Affordable (Index 88-89)

5. Alabama (88.3) - Groceries: $326.82 | Healthcare: $296.24 | Utilities: $296.36 | Transportation: $662.92 | Mortgage: $1,376.80
6. Missouri (88.5) - Groceries: $324.10 | Healthcare: $306.11 | Utilities: $285.36 | Transportation: $663.65 | Mortgage: $1,481.39
7. Arkansas (89.0) - Groceries: $324.10 | Healthcare: $297.94 | Utilities: $265.11 | Transportation: $654.15 | Mortgage: $1,238.30

Tier 3: Very Affordable (Index 90-91)

8. Tennessee (90.3) - Groceries: $332.26 | Healthcare: $299.98 | Utilities: $268.00 | Transportation: $647.58 | Mortgage: $1,933.73
9. Iowa (90.3) - Groceries: $328.52 | Healthcare: $338.46 | Utilities: $276.39 | Transportation: $719.86 | Mortgage: $1,304.35
10. Michigan (90.6) - Groceries: $336.00 | Healthcare: $317.69 | Utilities: $292.60 | Transportation: $705.99 | Mortgage: $1,460.40
11. Georgia (90.8) - Groceries: $333.62 | Healthcare: $341.52 | Utilities: $247.45 | Transportation: $682.63 | Mortgage: $1,992.76
12. Nebraska (90.9) - Groceries: $325.80 | Healthcare: $333.35 | Utilities: $248.03 | Transportation: $730.08 | Mortgage: $1,566.36
13. Louisiana (91.0) - Groceries: $323.08 | Healthcare: $336.07 | Utilities: $243.11 | Transportation: $699.42 | Mortgage: $1,212.63

Tier 4: Moderately Affordable (Index 92+)

14. Indiana (91.1) - Groceries: $334.98 | Healthcare: $328.24 | Utilities: $308.81 | Transportation: $696.50 | Mortgage: $1,443.47
15. Kentucky (92.0) - Groceries: $344.50 | Healthcare: $285.00 | Utilities: $302.15 | Transportation: $671.68 | Mortgage: $1,226.28
16. Illinois (92.1) - Groceries: $333.28 | Healthcare: $323.48 | Utilities: $256.42 | Transportation: $751.99 | Mortgage: $1,569.84
17. South Dakota (92.4) - Groceries: $329.88 | Healthcare: $333.35 | Utilities: $253.24 | Transportation: $711.10 | Mortgage: $1,821.54
18. Wyoming (92.4) - Groceries: $347.91 | Healthcare: $340.84 | Utilities: $253.53 | Transportation: $689.20 | Mortgage: $2,076.56
19. Texas (92.7) - Groceries: $325.46 | Healthcare: $319.73 | Utilities: $300.99 | Transportation: $670.22 | Mortgage: $1,851.77
20. New Mexico (94.0) - Groceries: $327.84 | Healthcare: $338.12 | Utilities: $269.45 | Transportation: $691.39 | Mortgage: $1,828.63

Strategic Insights: Maximizing Your Relocation Decision

Southern Strategy

The South dominates affordability rankings, with states like Oklahoma, Mississippi, Arkansas, and Alabama consistently offering monthly savings of $300-500 compared to coastal alternatives. Beyond housing costs, southern states benefit from lower energy expenses and reasonable healthcare pricing.

Great Plains Advantage

Kansas, Nebraska, and South Dakota present compelling options for those prioritizing low overall expenses. While some transportation costs run slightly higher due to car dependency, housing remains exceptionally economical.

Regional Trade-offs

Wyoming and Texas, though ranking among the lowest cost of living states, carry higher mortgage payments offset by competitive grocery and utility costs. Illinois similarly compensates for higher transportation costs with lower housing expenses relative to national averages.

Making Your Move: Final Considerations

For single adults evaluating relocation, these lowest cost of living states offer tangible financial relief. The difference between living in Oklahoma (86.2) versus New Mexico (94.0) translates to roughly $1,000 annually in miscellaneous expenses alone—multiplied across all categories, potential annual savings exceed $8,000-12,000.

Beyond raw numbers, consider employment opportunities, climate preferences, and community factors. The most affordable state means little if job prospects disappear or quality of life suffers.

Methodology Note: This analysis incorporates data from the Missouri Economic and Research Information Center’s cost of living indexes and the Bureau of Labor Statistics 2022 Consumer Expenditure Survey, current as of April 30, 2024. Mortgage calculations assume 10% down payments using 30-year fixed rates, with housing values sourced from the Zillow Home Value Index.