The 10 Most Affordable Cities With High Salaries and Low Costs of Living

Average salaries and costs of living vary wildly across the United States. The most affordable cities hit the sweet spot by having comparatively high salaries combined with a low cost of living. Using the best mortgage lenders can reduce costs even further.

Cities with low costs and high incomes can make mortgages more affordable to the benefit of residents Read on to learn about the 10 most affordable cities in the United States, as well as the cheapest and most expensive cities overall.

Methodology

To rank the most affordable places to live, Motley Fool Money compared median household income to cost-of-living data in hundreds of cities. A higher estimated income-to-expense ratio indicates more affordability.

Each city's cost-of-living index from the Council for Community and Economic Research was multiplied by median household expenditures nationwide to calculate a cost-of-living estimate.

Each city's median household income was then divided by its cost-of-living estimate to calculate an estimated income-to-expense ratio. The higher a city's income-to-expense ratio, the more its median income exceeds its cost-of-living estimate. That means a higher score indicates more affordability.

Cities with a cost-of-living value 10% or more over the national average are excluded from consideration.

Here are more details on the most affordable places to live in the United States.

The 10 most affordable places to live in the United States

1. McKinney, TX

• Estimated income-to-expense ratio: 1.60
• Cost-of-living estimate: $70,778
• Median household income: $113,286
• Cost-of-living index: 97

McKinney, Texas, a suburb of Dallas-Fort Worth, is the most affordable city in the United States by Motley Fool Money's calculations. McKinney boasts a cost-of-living index three points below the national average, while residents earn a median income 52% higher than the national median.

McKinney is an attractive location for mid-career Americans. The average age there is 37 and the median property value is $400,400, which is about $20,000 lower than the national median home sales price. The largest industries are professional, scientific and technical services, retail, and healthcare.

Estimate costs: Texas mortgage calculator

2. Edmond, OK

• Estimated income-to-expense ratio: 1.48
• Cost-of-living estimate: $65,305
• Median household income: $96,389
• Cost-of-living index: 89.5

Edmond, Oklahoma, is a suburb of Oklahoma City. Its cost-of-living index score is below the national average in every category, but housing in particular stands out. The median property value in Edmond in 2022 was $304,700, well below the national median at the time. The median income is 29% above the national median, while the cost-of-living is 10 points below the national median.

One of Edmond's biggest draws is its close proximity, roughly 15 miles, from Oklahoma City. The largest industries are healthcare, education, and professional services.

Estimate costs: Oklahoma mortgage calculator

3. Morristown, NJ

• Estimated income-to-expense ratio: 1.47
• Cost-of-living estimate: $77,272
• Median household income: $113,926
• Cost-of-living index: 105.9

Morristown, New Jersey is the third-most affordable city based on Motley Fool Money's methodology. The small town of 20,000 is located 20 miles west of Newark and 30 miles west of New York City. Its cost of living is slightly above the national average, but that's more than offset by the median household income there being 53% above the national median.

Housing is what puts the cost-of-living in Morristown above the national average. The housing cost of living there is 21 points above the national average. That said, the cost of utilities, transportation, and healthcare are all below the national average.

Estimate costs: New Jersey mortgage calculator

4. Midland, TX

• Estimated income-to-expense ratio: 1.27
• Cost-of-living estimate: $70,997
• Median household income: $90,448
• Cost-of-living index: 97.3

Midland, Texas, the fourth most affordable city, is located in the western part of the state and falls in the oil-rich Permian Basin. The cost of living there is just below the national average, while the median household income is 21% above the national median.

The oil and gas industry is the largest employer and the highest paying industry in the city, per the Census Bureau.

Housing is relatively affordable in Midland, about 14% below the national average, per the Council for Economic and Community Research.

While Midland is affordable by our measure, it may not be the most attractive place for some. There aren't many attractions nearby, the economy is dominated by the oil industry, and it's hours away from bigger cities and even mid-size cities like Lubbock and Albuquerque.

Estimate costs: Texas mortgage calculator

5. Joliet, IL

• Estimated income-to-expense ratio: 1.24
• Cost-of-living estimate: $68,662
• Median household income: $84,971
• Cost-of-living index: 94.1

Joliet, Illinois, located 35 miles outside of Chicago, is the fifth-most affordable city in the United States. The cost of living there is six points below the national average, while the median household income is 14% higher than the national median.

Housing stands out as being affordable in Joliet. The cost of housing there is roughly 20% below the national average, according to The Council for Economic and Community Research.

The Chicago suburb has a population of 150,000 and the median age there is 34. The healthcare industry is the largest employer. Its proximity to Chicago combined with relatively affordable housing makes it an attractive location for those looking to settle down.

Estimate costs: Illinois mortgage calculator

6. Hilton Head Island, SC

• Estimated income-to-expense ratio: 1.23
• Cost-of-living estimate: $76,251
• Median household income: $93,694
• Cost-of-living index: 104.5

The cost of living in Hilton Head Island, on the southern coast of South Carolina, is just above the national average, but the high median household income there makes it affordable. The cost of housing is the largest contributor to Hilton Head's cost of living being a few percentage points over the national average.

The population in Hilton Head tilts towards those in or approaching retirement -- the median age is 60. The largest industry in Hilton Head is food service and accommodation.

Hilton Head is somewhat isolated. It's only 30 miles from Savannah, Georgia, but it can take around an hour to drive there. That could make it challenging to afford and less attractive to folks who aren't able to work remotely or have a relatively lucrative opportunity secured on the island.

Estimate costs: South Carolina mortgage calculator

7. Austin, TX

• Estimated income-to-expense ratio: 1.21
• Cost-of-living estimate: $71,435
• Median household income: $86,556
• Cost-of-living index: 97.9

Despite Austin's massive growth, it remains among the most affordable cities in the United States.

Its cost of living is 2% below the national average while the median household income there is 16% above the national median. The cost of housing in Austin is just 5% over the national average while all other major categories of cost of living are below the national average, according to The Council for Economic and Community Research.

Austin is an attractive destination for mid-career workers. The median age in the city is 34 and incomes there have steadily increased over the years. The largest industries in Austin are professional, scientific, and technical services, education, and healthcare.

Estimate costs: Texas mortgage calculator

8. Pierre, SD

• Estimated income-to-expense ratio: 1.192
• Cost-of-living estimate: $67,494
• Median household income: $80,473
• Cost-of-living index: 92.5

While Pierre, the capital of South Dakota, is the eighth-most affordable city in the country, it's also among the smallest on our list. In fact, it's the second-least populous state capital, behind Montpelier, Vermont.

Despite its affordability, Pierre's small population and significant distance from a big city may make it less attractive to some.

The median age in Pierre is 40 and the largest industry is public administration.

Estimate costs: South Dakota mortgage calculator

9. Surprise, AZ

• Estimated income-to-expense ratio: 1.17
• Cost-of-living estimate: $74,718
• Median household income: $87,756
• Cost-of-living index: 102.4

Thirty-five miles northwest of Phoenix, Surprise, Arizona boasts a cost of living just over the national average, but a median household income 18% above the national median.

Utilities are expensive in Surprise -- 35% above the national average, but housing and healthcare are around 11% below the national average, according to The Council for Economic and Community Research.

Surprise is a fun place to live for people who like to stay active. It has professionally designed golf courses, tennis courts, and aquatic centers. The median age is 41, and both the population and income of its residents are growing. The largest industries are retail, healthcare, and education.

Estimate costs: Arizona mortgage calculator

10. Minot, ND

• Estimated income-to-expense ratio: 1.15
• Cost-of-living estimate: $65,889
• Median household income: $75,545
• Cost-of-living index: 90.3

Minot, North Dakota, has a cost of living well below the national average. Fifteen miles south of an airforce base, Minot is home to 48,000 people with a median age of 33. The median household income is in line with the national median.

The cost of housing in Minot is 26% below the national average, measured by the Council for Economic and Community Research. Utilities are also well below the national average.

The largest industries in Minot are healthcare, education, and retail. The city is small, but it does have a zoo and hosts the North Dakota State Fair every year.

Estimate costs: North Dakota mortgage calculator

Cheapest and most expensive cities in the United States

According to cost of living data from the Council for Community and Economic Research, these are the 10 cheapest and most expensive cities to live in based on data from the first quarter of 2024.

A cost of living index of 100 represents the nationwide average, with a lower score meaning the cost of living in that city is lower.

These lists are based only on the cost of living index, not overall affordability which is based on the median household income in each city relative to the cost of living there.

Cheapest cities in the U.S.

Decatur, Illinois is the cheapest city in the United States with a cost-of-living index of 78.8, according to the Council for Community and Economic Research. The Manhattan borough of New York City is the most expensive city in the U.S. with a cost-of-living index of 231. A cost-of-living index of 100 represents the nationwide average.

The tables below have the cheapest and most expensive cities in the United States. Note that the cheapest cities are ranked only by their cost of living. It's not a ranking of affordability, because it doesn't account for the average income in each city.

Most expensive cities in the U.S.

Sources

• Bureau of Labor Statistics (2023). "Consumer Expenditure Survey".
• Census Bureau (2023). "American Community Survey."
• Council for Community and Economic Research (2024). "2024 Q1 Annual Average Cost of Living Index Report."