Midwest states have some of the nation's lowest housing, food, and energy costs.
Insurance premiums are rising in Midwest states due to severe weather events.
West Virginia and North Dakota also rank among the most affordable states for cost of living.
Source: jabkitticha / Getty
When it comes to economics in 2026 something we all know and have experienced is nationwide inflation, however, the burden of inflation is less in some states that others.
The cost of living is important when companies decided where to do business, low cost living helps then attract workers, it also means they may be able to pay their employees less because the cost of living is less and allowing the company to save on wage cost.
CNBC rate states based on an index of prices for a broad range of goods and services calculated by the council for community and economic research. They also consider housing affordability both for home owners and renters.
Some states are way more expensive than others but in these following states, the cost of living is more bearable, check out americas cheapest states in 2026.
Missouri
2026 Cost of Living score: 34 out of 50 points
According to ATTOM Data solutions, the average rent for a 3 bedroom home last year was just 1,582, in other states thats the minimum rent for a one bedroom apartment. This is the 5th lowest in the country as a percentage of medium income.
Housing isnt the only thing thats cheap in missouri, food is cheaper as well, a head a lettuce Joplin here would cost you 12% less than what you would pay in new york city according to C2ER. however one thing missouri does not bargain on is insurance. Last year the state was hit by severe stormes that killed at least 4 people and caused $1.6 billion in damage driving the cost of insurance to go up. Premiums are the 13th highest in the country and are expected to rise another 7% this year.
Average rent (3-bedroom home): $1,582
Average home price (Springfield): $478,702
Monthly energy bill: $149.83
Dozen eggs (Q1 2026): $3.22
Loaf of bread (Q1 2026): $3.39
Ohio
2026 Cost of Living score: 35 out of 50 points
In ohio you get a real bang for your buck, this state has one of the nations lowest cost of living in adition to the lowest business cost. Cleveland is amazing when it comes to affordable housing with an average price that is a little more than one third as it would be in boston. The average rent in ohio is the 4th lowest in the country
Kansas is where you can watch your money grow, cooking oils are about 10% less than it would be in other cities and the housing cost are thethird lowest in th country same with many of its midwest neighbors, however the cost of insurance is rising with the increase of severe storms, summer heat and the winter cold. Last year premiums were the 10th highest in the country with a 4% increase forecast this year
Average rent (3-bedroom home): $1,538
Average home price (Salina): $348,000
Monthly energy bill: $223.04
Dozen eggs: $3.87
Loaf of bread: $3.63
Iowa
2026 Cost of Living score: 36 out of 50 points
Renting a home in iowa is the second lowest in th country, but here, you may want to buy instead of rent, this state has the most affordable housing in the nation, however iowa is also a state that has high insurance rates
Average rent (3-bedroom home): $1,580
Average home price (Burlington): $331,200
Monthly energy bill: $205.61
Dozen eggs: $3.63
Loaf of bread: $3.63
Indiana
2026 Cost of Living score: 36 out of 50 points
When the economy got crazy and gas prices went through the roof at the start of the iran war gasoline in richmond, indiana was avalible for $2.82 a gallon acccoring to C2ER even balancing your tires would cost you roughly half of what you would pay in states like arkansas
Average rent (3-bedroom home): $1,711
Average home price (Kokomo): $293,267
Monthly energy bill: $197.80
Dozen eggs: $3.92
Loaf of bread: $3.53
Wyoming
2026 Cost of Living score: 37 out of 50 points
Homeowners’ premiums in wyoming are own the lower side sitting at about $1,929 per year this is the 16th lowest in th country and they are not expected to increase at all this year, wyoming has seen inflation in some areas like food prices however its nothing thats too out of hand
Average rent (3-bedroom home): $1,791
Average home price (Laramie): $449,444
Monthly energy bill: $208.17
Dozen eggs: $3.28
Loaf of bread: $4.29
South Dakota
2026 Cost of Living score: 38 out of 50 points
Home ownership in south dakota is th e4th lowest in monthly payments in the nation based on ATTOM Data solutions andU.S. Census numbers. Buying a home here would cost you 25% less than it would if you were in miami florida. If youre lookingto rent, rental cost are in the bottom 10 in the nation.
Average rent (3-bedroom home): $1,785
Average home price (Pierre): $474,200
Monthly energy bill: $175.72
Dozen eggs: $3.28
Loaf of bread: $3.82
Alabama
2026 Cost of Living score: 38 out of 50 points
Weather you are looking to rent or own alabamas home prices are reasonable. Rent jere is the 10th lowest in the nation as a percentage median income.
Average rent (3-bedroom home): $1,542
Average home price (Anniston): $284,340
Monthly energy bill: $239.21
Dozen eggs: $4.72
Loaf of bread: $3.80
North Dakota
2026 Cost of Living score: 41 out of 50 points
This state offers some of th emost affordable housing in the nation, a newly built 4 bedroom home here with your own plant garden will cost you less than half of comparable housing cost to places like montana. Clothes and apparel are cheaper here as well.
Average rent (3-bedroom home): $1,908
Average home price (Bismarck): $378,598
Monthly energy bill: $157.22
Dozen eggs: $3.27
Loaf of bread: $3.83
West Virginia
2026 Cost of Living score: 43 out of 50 points
Your monthly housing cost are unbelievable. Near;y 81% of people in this state pay less than one third of their monthly income in housing, insurance premiums are among the lowest in the country as well, the grocery bill is reasonable as well, a bag of frozen sweet peas here would cost 30% less than it would in other states, and gas here is reasonable too much cheaper to fill your car here than half a tank would be in other states
