12 of the Most Affordable Places to Live in the U.S. in 2025

According to Bankrate’s 2024 Home Affordability Survey 78% of U.S. adults say owning a home is still part of the American Dream. But with rising living costs, achieving this dream can feel out of reach for many families, Gen Zers and remote workers. Fortunately, several communities across the U.S. offer a high quality of life at a lower price which includes affordable housing, access to amenities and welcoming locals without breaking the bank.

How Did We Determine the 12 Most Affordable Places to Live?

In addition to data provided on websites like niche.com and bestplaces.net, we looked at average home prices, rental rates and testimonials from locals to determine this list.

Here are 12 of the most affordable places to consider if you’re looking to relocate:

1. Augusta, Georgia

Why it's great: Compared to other major cities in Georgia, Augusta boasts a lower cost of living, especially regarding housing. As Georgia's second oldest city, Augusta is steeped in history. Explore its historic districts with beautiful antebellum architecture.

Median Home Price: $209,900

Average Rent: $1,380/month

Don't miss: Known as the "Home of the Masters," Augusta boasts world-class golf courses, including the iconic Augusta National Golf Club. Located on the Savannah River, the Riverwalk is a popular spot for recreation and relaxation.

2. Clinton, Mississippi

Why it's great: Clinton enjoys one of the state's lowest crime rates, giving residents peace of mind. The town also boasts top-notch public schools, consistently ranking among the best in Mississippi.

Median Home Price: $317,000

Average Rent: $1,660/month

Don't miss: Mississippi College, a private liberal arts university, enriches the community with cultural events and educational opportunities. The historic downtown area features brick streets, local shops and restaurants - creating a pleasant atmosphere for strolling and gathering.

3. Des Moines, Iowa

Why it's great: Des Moines consistently ranks high in affordability, with housing costs significantly lower than the national average. From historic homes to modern apartments, the city offers a variety of housing choices to fit different needs and budgets. Des Moines also has a friendly and welcoming atmosphere with active neighborhood associations and community events

Median Home Price: $249,900

Average Rent: $1,250/month

Don't miss: Explore the Pappajohn Sculpture Park, visit the Des Moines Art Center, and enjoy the Greater Des Moines Botanical Garden.

4. Fort Wayne, Indiana

Why it's great: Fort Wayne is another community that consistently ranks as one of the most affordable cities in the U.S. - housing, groceries, utilities and healthcare are all lower than the national average. The downtown area has undergone a revitalization with new restaurants, breweries, art galleries and entertainment venues.

Median Home Price: $259,900

Average Rent: $1,200/month

Don't miss: Explore over 80 parks, including the expansive Franke Park and the scenic Rivergreenway, offering ample opportunities for hiking, biking and enjoying nature. Visit the Fort Wayne Children's Zoo, and Fort Wayne Museum of Art.

5. Floyd County, Indiana

Why it's great: Floyd County is conveniently located near Louisville, Kentucky, providing easy access to its urban amenities, including employment opportunities, cultural attractions, and a major airport. You'll find a range of housing choices, from historic homes in New Albany to newer developments in growing communities.

Median Home Price: $279,900

Average Rent: $1,050/month

Don't miss: Floyd County boasts beautiful rolling hills, forests and the Ohio River, offering picturesque views, a peaceful atmosphere and plenty of opportunities for outdoor adventure.

6. Green Bay, Wisconsin

Why it's great: Green Bay, Wisconsin, offers a unique blend of Midwestern charm, vibrant city life and strong community spirit, making it a great place to call home. The city offers a variety of quality education options, including public schools, private schools and the University of Wisconsin-Green Bay.

Median Home Price: $349,900

Average Rent: $1,450/month

Don't miss: Being the home of the iconic Green Bay Packers creates a unique sense of community and excitement. Experience the legendary Lambeau Field, a historic landmark and a must-visit for any football fan. Game days are a special experience with tailgating and city-wide celebrations.

7. Hutchinson, Kansas

Why it's great: Hutchinson offers a close-knit community where people know their neighbors and feel connected. This fosters a friendly and welcoming environment. Hutchinson is located just 45 minutes from Wichita, the largest city in Kansas. This provides residents with easy access to a wider range of shopping, dining, and entertainment options.

Median Home Price: $262,000

Average Rent: $2,100/month

Don't miss: Hutchinson is home to the Cosmosphere, a world-class space museum and education center. It's a fantastic attraction for residents and visitors of all ages. Another unique attraction is Strataca, an underground salt mine that locals describe as a fascinating experience.

8. Indianapolis, Indiana

Why it's great: Compared to other major cities in the U.S., Indianapolis boasts a lower cost of living, especially in terms of housing. Indianapolis is a relatively easy city to navigate, with a well-planned grid system and good public transportation options. This makes it convenient to get around, whether you're driving, biking, or using public transit.

Indianapolis's affordability makes it an ideal location for remote workers who are looking to achieve first-time homeownership. Luke Lawson’s recent decision to relocate from Virginia to Indianapolis through the MakeMyMove program was driven largely by his dream of becoming a homeowner. “It was so much more affordable purchasing a home here than in Northern Virginia where my wife and I used to live. It’s nice because we have the budget to make renovations and turn it into the home we want,” Lawson says.

Median Home Price: $260,000

Average Rent: $1,650/month

Don't miss: Indianapolis is a sports lover's paradise, home to the Indianapolis Colts (NFL), Indiana Pacers (NBA), and the iconic Indianapolis Motor Speedway, which hosts the world-famous Indy 500. The city also hosts numerous food festivals and farmers markets, showcasing local culinary talent.

9. Kalamazoo, Michigan

Why it's great: Kalamazoo might be a smaller city, but it offers a compelling mix of benefits that make it a great place to live. The Kalamazoo Promise is a unique program that offers free college tuition to Kalamazoo Public Schools graduates. It's a game-changer for families and a major draw for those with children, making higher education more accessible and affordable.

Median Home Price: $244,950

Average Rent: $1,300/month

Don't miss: Kalamazoo is a haven for craft beer enthusiasts. Bell's Brewery, a nationally recognized brewery, calls Kalamazoo home, and there are several other local breweries and pubs offering a wide selection of craft beers. The Kalamazoo Institute of Arts, the Gilmore Keyboard Festival and local festivals add to the city's cultural richness.

10. Knoxville, Tennessee

Why it's great: Compared to other major cities in the Southeast, Knoxville offers a relatively low cost of living. Housing is affordable, and everyday expenses like groceries and utilities are reasonable, making it easier to achieve a comfortable lifestyle. The University of Tennessee brings a youthful energy to Knoxville, with a vibrant campus life and exciting sporting events.

Median Home Price: $421,600

Average Rent: $2,350/month

Don't miss: Knoxville is an outdoor enthusiast's dream. The Great Smoky Mountains National Park, the most visited national park in the US, is just a short drive away, offering endless opportunities for hiking, camping, and exploring. The Knoxville Zoo, the Children's Museum of Oak Ridge and numerous parks and playgrounds provide entertainment for kids of all ages.

11. South Bend, Indiana

Why it's great: South Bend has been recognized as a "City of Innovation" for its efforts in promoting entrepreneurship and technology. This creates a forward-thinking environment with opportunities for new businesses and startups. South Bend boasts a cost of living significantly lower than the national average, its low housing prices make it a great place for anyone who has dreams of homeownership.

Median Home Price: $180,500

Average Rent: $1,190/month

Don't miss: South Bend has invested in revitalizing its downtown area, creating a walkable and inviting space with shops, restaurants, and entertainment venues. The city's River Lights, a dynamic LED display along the St. Joseph River, adds a unique touch to the cityscape.

12. Texarkana, Arkansas

Why it's great: Texarkana is a unique city straddling the border of Texas and Arkansas, offering a blend of small-town charm and big-city amenities. Being on the state line offers a unique experience. Residents can enjoy the best of both worlds, with access to different cultural attractions, events and opportunities in both Texas and Arkansas.

Median Home Price: $202,500

Average Rent: $2,100/month

Don't miss: Texarkana has a vibrant arts and culture scene, with the Perot Theatre hosting Broadway shows, concerts and other performances. The Regional Arts Center showcases local artists and offers art classes and workshops. Bringle Lake Park provides space for fishing, boating, and picnicking, while Wright Patman Lake is a popular spot for watersports and camping.