Are you a US citizen looking for an affordable destination in the country to live in? Well, whether you’re looking for a region you can retire to, launch new investments, seek employment or for your personal preferences, you’ve come to the right place. We’ve prepared a list of most affordable regions you can live in. These destinations are characterized by low living costs, great job opportunities, and amazing lifestyle options. Please read on.
- Indianapolis, Indiana
Indianapolis is located near Indiana’s geographical center. You’ll get to choose a neighborhood that appeals to you whether you’d prefer urban, suburban, or semi-rural areas. The commute times are significantly manageable owing to the spacious, well-maintained highway system. The quality of life is high, and you won’t experience much pressure on the living costs. As a resident in the area, you’ll only spend about 20% of your household income on the cost of living – taxes, utilities, mortgage, and rent. With proper wealth management, starting life in this and other regions mentioned here would be much easier. You can visit CommerceTrustCompany.com to learn more about the importance of an effective wealth management plan both now and in your future.
- Median household income: $41987 (average for Indiana is $54181)
- Median rent (City/Metro): $1000/$1195
- Median home sale price (City/Metro): $144000/$176000
- Median home list price (City/Metro): $144000/$195000
- Average cost of regular gasoline (per gallon): $2.3
- State income tax rate: 3.4% flat rate on all income
- Local sales tax rate: 7% (state) plus 1.6% (local)
- Average commute time: 27 mins
- Utility cost index: 91
- Living cost index: 90
- Birmingham, Alabama
The US Birmingham region has been a hub for the steel industry for so long and has been known as the “furnace of the South” for years now. It sits near Appalachian Mountains’ southern terminus and is bracketed by parallel ridges running from southwest to northeast. The city is the regional business center characterized by lots of decently compensated white-collar experts living a downright princely lifestyle. If you prefer the suburban hilltop houses, you’ll have to dig deep into your personal finance.
- Median household income: $31061 (average for Alabama is $48123)
- Median rent (City/Metro): $795/$950
- Median home sale price (City/Metro): $No data/$195000
- Median home list price (City/Metro): $76750/$153000
- Average cost of regular gasoline (per gallon): $2.45
- State income tax rate: 5% on income over $3000
- Local sales tax rate: 4% (state) plus 5% (local)
- Average commute time: 26 mins
- Utility cost index: 102
- Living cost index: 73
- Las Vegas, Nevada
Las Vegas is among the most affordable regions in the Pacific Time Zone. Even though home values are hiking at a faster rate than the national median, the local incomes make it significantly possible to afford the housing. The land and labor costs are relatively low, making the region a popular financial back office. The main challenges you’ll face in this region especially as a newcomer the summer heat and inability to install water-hogging grass lawns on some parcels. However, you can opt for the cool rock and xeriscaping gardens.
- Median household income: $50202 (average for Nevada is $58003)
- Median rent (City/Metro): $1350/$1350
- Median home sale price (City/Metro): $235000/$252500
- Median home list price (City/Metro): $274995/$279000
- Average cost of regular gasoline (per gallon): $2.7
- State income tax rate: None
- Local sales tax rate: 6.85% (state) plus 1.25% (local)
- Average commute time: 27 mins
- Utility cost index: 90
- Living cost index: 105
- Memphis, Tennessee
The city of Memphis is the second-largest population center in Tennessee, having a metro-area population of approximately 1.3 million. It’s well known for its rock-bottom cost of living which makes it one of the most affordable regions in the US that you can live in. You’ll enjoy the soft local economy in the area owing to its low gas prices and cheap housing. You may consider having an IRA trust, especially if you intend to give your beneficiaries an unfettered access to your retirement account. You also won’t have to worry about the county, city, and state income taxes if you live in the area.
- Median household income: $36445 (average for Tennessee is $51340)
- Median rent (City/Metro): $895/$950
- Median home sale price (City/Metro): $140000/$165000
- Median home list price (City/Metro): $89500/$170000
- Average cost of regular gasoline (per gallon): $2.4
- State income tax rate: None
- Local sales tax rate: 7% (state) plus 2.25% (local)
- Average commute time: 24 mins
- Utility cost index: 85
- Living cost index: 74
- Columbus, Ohio
Columbus has the most educated populace and most robust economy among the major Ohio cities – Toledo, Dayton, Cincinnati, and Cleveland. From the vibrant urban core, the region spreads in concentric circles that are progressively less dense. The region hosts one of the largest public institution in the country; the Ohio State University. It also has some of the world-class cultural institutions such as the Franklin Park Conservatory and the Columbus Museum of Art.
- Median household income: $45659 (average for Ohio is $54021)
- Median rent (City/Metro): 1075/$1300
- Median home sale price (City/Metro): $159500/$180000
- Median home list price (City/Metro): $160000/$226990
- Average cost of regular gasoline (per gallon): $2.2
- State income tax rate: 3.76% top (median earners) and 5.2% top (top bracket)
- Local sales tax rate: 7.5%
- Average commute time: 21 mins
- Utility cost index: 96
- Living cost index: 84
- Kansas City, Missouri
Kansas City is a metro area straddling both Kansas and Missouri and is home to at least 2 million residents. Unlike other major metro areas, however, Kansas City has been able to maintain greater affordability. As a resident in this region, you’ll only have to dedicate about 21% of your household income towards the cost of living.
- Median household income: $45376 (average for Missouri is $53578)
- Median rent (City/Metro): 1495/$1517
- Median home sale price (City/Metro): $307900/$307900
- Median home list price (City/Metro): $150300/$156000
- Average cost of regular gasoline (per gallon): $2.6
- State income tax rate: 5.4%
- Local sales tax rate: 8.4%
- Average commute time: 21 mins
- Utility cost index: 101.4
- Living cost index: 91.9
- Salt Lake, Utah
Perhaps you wouldn’t expect the Salt Lake City, surrounded by beautiful mountain ranges and having flourishing technology economy that’s creating access to an inimitable culture of collaboration and civic responsibility, world’s best skiing opportunities, and good jobs, would feature in the list. Surprisingly, the city has relatively low housing costs through its local housing market is constantly heating up. In this area, about 1 in 5 local workers use public transit to work.
- Median household income: $47243 (average for Utah is $68358)
- Median rent (City/Metro): 1495/$1517
- Median home sale price (City/Metro): $307900/$307900
- Median home list price (City/Metro): $397000/$349900
- Average cost of regular gasoline (per gallon): $2.6
- State income tax rate: 4.95% flat rate on all income
- Local sales tax rate: 6.85% plus local for retail and 7.85% for restaurants
- Average commute time: 21 mins
- Utility cost index: 82
- Living cost index: 108
- Des Moines, Iowa
For many years, the Des Moines region has been known for its low cost of living. It’s the capital of Iowa with a somehow economic sweet spot. The once pastures and cornfields which bracketed the region’s beltways have been transformed into urban playgrounds for entrepreneurs (tech businesses known as Silicon Prairie), graduates, and students. You’ll only spend an average of 20 % of your median household income on the cost of living as a resident. Plus, the region is not only one of the most affordable metro areas, but it’s also friendly.
- Median household income: $46290 (average for Iowa is $58570)
- Median rent (City/Metro): $1000/$1200
- Median home sale price (City/Metro): $123000/$173000
- Median home list price (City/Metro): $129900/$229900
- Average cost of regular gasoline (per gallon): $2.6
- State income tax rate: 7.9% top (median earners) and 9% top (top bracket)
- Local sales tax rate: 6%
- Utility cost index: 88
- Living cost index: 83
- Buffalo, New York
Though its economy hasn’t stabilized, the region is well known as a home to an emerging cluster of universities and health centers that are collectively and constantly stabilizing employment in the region. Also, there’s a ready-made market for local products due to the proximity of Canada’s highly populated Golden Horseshoe. The weather is somehow harsh in this region (a lot of snow), and you’ll somehow earn less than your downstate New York counterparts. However, the rent is relatively much lower when compared to the statewide average. You’ll spend an average of 21% of your median household income on the cost of living.
- Median household income: $31918 (average for New York is $64894)
- Median rent (City/Metro): No data/$950
- Median home sale price (City/Metro): $69400/$141000
- Median home list price (City/Metro): $85000/$140000
- Average cost of regular gasoline (per gallon): $2.7
- State income tax rate: 8.82% top
- Local sales tax rate: 8.75%
- Utility cost index: 107
- Living cost index: 84
- San Antonio, Texas
San Antonio is well known for its rich history owing to the major role it played as a Mexican trading city and a Spanish colonial outpost some decades ago. The downtown areas of the city are usually busy with activities all year round – a miles-long collection of tourist shops, trendy restaurants, dive bars, and authentic mom-and-pop stores. Though the rent is fairly expensive in this region, especially the tourist-friendly part of the city, the fuel and housing costs are relatively low. The region is also a haven for military families owing to the four Air Force and Army bases surrounding the city.
- Median household income: $46744 (average for Texas is $59206)
- Median rent (City/Metro): $1250/$1321
- Median home sale price (City/Metro): $226000/$226000
- Median home list price (City/Metro): $237990/$273500
- Average cost of regular gasoline (per gallon): $2.4
- State income tax rate: None
- Local sales tax rate: 6.25% (state) plus 2% (local)
- Average commute time: 23 mins
- Utility cost index: 84
- Living cost index: 93
Conclusion
These are not the only regions that are most affordable in the US; there are other destinations as well. But these represent some of the most cost-effective destinations where you can get access to decent houses, good infrastructure, and several other conveniences that can give you the best living experience possible. You can choose any destination that you’ll find suitable for you or your beneficiaries. You may consult a professional to guide you through your wealth management and ensure you’re making informed decisions. Good luck!
