Top 10 Cheapest Places to Live in the US 2022

Are you looking for the cheapest places to live in the US? This article lists the top cities with affordable housing and low costs of living.

Table of Contents

How to Find the Cheapest Places to Live in the US
Top 10 Safest and Cheapest Places to Live in the US
How to Find the Best Cities for Traditional Rentals

Since the pandemic, many Americans from high-tax states have been moving to one of the cheapest and safest places to live in the US. It is made possible because of the work-from-home setup adopted by several companies, which is considered the new normal. Most Americans who plan to move prefer to live in a city with comfortable climates, less expensive housing expenses, and reasonable costs of living.

Cities that are generally less expensive can expect to see an increase in their population growth rate. What does it mean for real estate investors? As investors, you can take advantage by investing in rental properties. Having a rental property investment in one of the cheapest places in the US to live in can provide you with great opportunities.

How to Find the Cheapest Places to Live in the US

To find the cheapest places to live in the US, you need to factor in the affordability of housing and rent prices, as well as the overall cost of living. If you want safe and comfortable living, you also need to consider the climate of a particular location. You will typically find options in the South and the Southeast regions, which are humid and subtropical.

Remember that even though such cities are affordable, it does not automatically mean they are lucrative investments. If you’re planning to purchase an investment property in any of the less expensive cities, it’s important to review the city’s real estate analysis and data. Make sure to check important metrics, such as the city’s median property price, price to rent ratio, cash on cash return, and cap rate. It can help ensure that investing in such a city will be worth your money.

Top 10 Safest and Cheapest Places to Live in the US

Housing affordability makes a city one of the cheapest places to live in the US. However, aside from affordable housing, mild weather conditions are what Americans also look for when choosing a place to migrate into. Similarly, it’s equally important to check how safe the area is and whether it is ideal for raising a family with kids. For real estate investors, you also need to consider other factors, such as amenities, public transport, job opportunities, and the quality of education, when choosing where to invest.

Based on our research, here are the top 10 cheapest places to live in the US:

1. Charlotte, NC

Number of Traditional Listings: 2,796
Monthly Traditional Rental Income: $2,090
Traditional Cash on Cash Return: 1.74%
Traditional Cap Rate: 1.78%
Price to Rent Ratio: 25
Number of Listings for Sale: 1,051
Median Property Price: $626,525
Average Price per Square Foot: $335
Days on Market: 84
Walk Score: 36

Charlotte is the most populated city in North Carolina and is known as one of the most prominent commercial hubs in the state. Investing in Charlotte rental properties can be a good idea since it is also one of the fastest-growing cities in the US. Its thriving economy opens more job opportunities, so many people choose to migrate to Charlotte, NC.

According to Mashvisor’s data, as of April 2022, the price to rent ratio in Charlotte is 25, which is considered high. It means that renting a home is more affordable than buying one. Based on this rental property analysis, Charlotte is one of the cheapest places to live in the US that can be a good location for traditional rental investment.

Other Reasons Why People Move to Charlotte:

Cost of living: According to data from payscale.com, the cost of living in Charlotte is 5% lower than the national average, making the city one of the best cheapest places to live in the US.
Climate: Charlotte has a pleasant humid, subtropical climate that enjoys 109 clear days with an annual rainfall of 58.2 cm.
Job market: The strong job growth makes Charlotte one of the best cities to work in based on job opportunities, unemployment rate, and wage growth.

2. Columbus, GA

Number of Traditional Listings: 475
Monthly Traditional Rental Income: $1,047
Traditional Cash on Cash Return: 3.07%
Traditional Cap Rate: 3.21%
Price to Rent Ratio: 18
Number of Listings for Sale: 308
Median Property Price: $224,119
Average Price per Square Foot: $909
Days on Market: 83
Walk Score: 35

Columbus, GA, is among the cheapest places to live in the US. The cost of living in the city is 11% lower than the national average. Bestplaces.net rated the cost of living in Columbus at 74.4/100. It is also one of the best cities with pleasant weather conditions. You can expect to see 110 clear days in a year.

Based on the above rental market analysis, the price to rent ratio in Columbus is 18, which is considered moderate. It means that home prices are neither high nor low compared to rental rates. It provides more opportunities for both traditional rental investors and real estate investors who plan to invest in fixer-uppers.

Other Reasons Why People Move to Columbus:

Quality education: Families with school-aged children find Columbus as one of the cheapest nicest places to live in the US because it is home to over 60 schools.
Affordable housing: With a median property price of $224,119, and a reasonable average annual appreciation rate of 1.67%, Columbus is one of the cities that offer affordable housing.
Low tax rate: Georgia offers one of the lowest tax rates in the country.

3. Mobile, AL

Number of Traditional Listings: 94
Monthly Traditional Rental Income: $1,311
Traditional Cash on Cash Return: 3.79%
Traditional Cap Rate: 3.97%
Price to Rent Ratio: 18
Number of Listings for Sale: 173
Median Property Price: $284,169
Average Price per Square Foot: $131
Days on Market: 52
Walk Score: 6

Mobile, AL, can be a great place to invest in rental properties and earn passive income. With cash on cash return of 3.79% and a cap rate of 3.97%, it offers excellent opportunities for real estate investors who are planning to invest in traditional rentals.

The reason why Mobile, AL, is considered one of the cheapest places to live in the US is that its cost of living is way below the national average. Specifically, housing prices are very inexpensive, with an average price of only $131 per square foot.

Other Reasons Why People Move to Mobile:

Climate: Mobile enjoys around 102 clear days in a year.
Laidback lifestyle: In Mobile, things are done slower, and people tend to live a laidback life, making this place a good location for those seeking to retire.
Decent schools: Mobile provides quality education through its public and private schools.

4. Norfolk, VA

Number of Traditional Listings: 1,085
Monthly Traditional Rental Income: $1,507
Traditional Cash on Cash Return: 2.91%
Traditional Cap Rate: 3.01%
Price to Rent Ratio: 20
Number of Listings for Sale: 209
Median Property Price: $358,255
Average Price per Square Foot: $205
Days on Market: 70
Walk Score: 39

Norfolk, VA, is a large coastal city and is home to around 240,000 people. It is the fourth largest city in Virginia, with a cost of living that’s around 8% cheaper than the national average. Because of its low cost of living, Norfolk is one of the cheapest places to live in the US.

Based on Mashvisor’s rental data, Norfolk has a medium price to rent ratio of 20. It means that residents are a mixture of homeowners and renters. Traditional rental investors can expect a moderate rental demand with moderate profitability.

You can search for Norfolk investment properties using Mashvisor’s investment property search feature to find properties that are best for traditional rentals.

Other Reasons Why People Move to Norfolk:

Housing affordability: With an average price of only $205 per square foot, Norfolk, VA, is one of the most affordable real estate markets in the country.
Climate: You can expect around 106 clear days in a year.
Safety: Norfolk is considered safer than 10% of US cities, with a total crime rate of 35.16% per 1,000 residents.

5. Jackson, MS

Number of Traditional Listings: 250
Monthly Traditional Rental Income: $1,528
Traditional Cash on Cash Return: 3.06%
Traditional Cap Rate: 3.16%
Price to Rent Ratio: 18
Number of Listings for Sale: 137
Median Property Price: $321,538
Average Price per Square Foot: $130
Days on Market: 181
Walk Score: 22

Jackson, MS, has a population of over 150,000 people and is the largest city in Mississippi. Weather-wise, Jackson enjoys 111 clear days in a year. It is considered one of the cheapest places to live in the US because its cost of living is 11% below the national average.

With a median property price of $321,538, Jackson also enjoys affordable housing. If you plan to invest in Jackson traditional rentals, you can expect to earn a good return on investment based on a cash on cash return of 3.06% and a cap rate of 3.16%.

Other Reasons Why People Move to Jackson:

Job growth: Jackson expects to see future job growth of 29.9% in the next ten years.
Housing affordability: Jackson has a housing affordability index of 10%.
Warm weather: Located in central Mississippi, Jackson is a top choice for those who enjoy warm weather and outdoor sceneries.

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6. Shreveport, LA

Number of Traditional Listings: 134
Monthly Traditional Rental Income: $1,405
Traditional Cash on Cash Return: 3.35%
Traditional Cap Rate: 3.48%
Price to Rent Ratio: 19
Number of Listings for Sale: 187
Median Property Price: $317,729
Average Price per Square Foot: $129
Days on Market: 53
Walk Score: 37

Shreveport is Louisiana’s third most populous city, with a population of over 187,000 people. The cost of living in Shreveport is 9% lower than the national average. Moreover, it is one of the cheapest places to live in the country because gas prices and transportation expenses in Shreveport are 7% lower than the US average.

With a price to rent ratio of 19, investors can find good investment opportunities in the Shreveport rental market. It may also be good to invest in fix-and-flips since the median property price is only $317,729, which is lower than most other cities in the United States.

Other Reasons Why People Move to Shreveport:

Good weather: Shreveport enjoys around 114 clear days.
Affordable housing: Shreveport is among the cheapest places to live in the US because both rental rates and property prices are reasonable.
Quality education: Shreveport is home to 25 public schools and 14 private schools.

7. Tallahassee, FL

Number of Traditional Listings: 1,746
Monthly Traditional Rental Income: $1,250
Traditional Cash on Cash Return: 2.68%
Traditional Cap Rate: 2.81%
Price to Rent Ratio: 18
Number of Listings for Sale: 760
Median Property Price: $271,785
Average Price per Square Foot: $170
Days on Market: 49
Walk Score: 29

Tallahassee, FL, is among the cheapest places to live in the US because of housing affordability. The average price per square foot is only $170, while the median property price is $271,785. The figure is around 9% lower than the national average.

With a price to rent ratio of 18, Tallahassee residents are a mixture of renters and homeowners. Investors can find equal opportunities in the traditional rentals and buy-and-sell strategies. If you plan to invest in traditional rentals, make sure to choose the right location.

Other Reasons Why People Move to Tallahassee:

Climate: Tallahassee enjoys around 112 days of clear weather.
Cost of living: The cost of living in Tallahassee FL is 4% lower than the national average.
Tax benefits: Tallahassee residents enjoy the benefit of not having to pay local personal income taxes, making this city one of the cheapest best places to live in the US.

8. Memphis, TN

Number of Traditional Listings: 958
Monthly Traditional Rental Income: $1,348
Traditional Cash on Cash Return: 2.34%
Traditional Cap Rate: 2.43%
Price to Rent Ratio: 24
Number of Listings for Sale: 284
Median Property Price: $381,868
Average Price per Square Foot: $141
Days on Market: 43
Walk Score: 31

Memphis, TN, is one of the cheapest places to live in the US because of its affordable housing. With an average price per square foot of only $141, homebuyers and investors alike can take advantage of such a low price. However, the current for-sale inventory in Memphis is low, making it challenging to find a property to buy.

The price to rent ratio in Memphis is 24, which is considered high. It means that many residents prefer to rent instead of buying a home. It opens more opportunities for real estate investors who are planning to invest in Memphis traditional rentals.

Other Reasons Why People Move to Memphis:

Cost of living: The cost of living in Memphis is 17% lower than the national average; that’s why it’s among the cheapest places to live in the US.
Climate: Memphis enjoys around 118 clear days.
Tax benefits: Memphis residents enjoy zero income tax rate.

9. Little Rock, AR

Number of Traditional Listings: 204
Monthly Traditional Rental Income: $908
Traditional Cash on Cash Return: 2.21%
Traditional Cap Rate: 2.31%
Price to Rent Ratio: 24
Number of Listings for Sale: 81
Median Property Price: $261,504
Average Price per Square Foot: $124
Days on Market: 42
Walk Score: 48

Little Rock, AR, is also one of the cheapest places to live in the US because of the low property prices in the city. With a median home value of only $261,504, Little Rock residents enjoy affordable housing.

However, since the price to rent ratio is considered high at 24, many people in Little Rock prefer to rent a home instead of buying one. Investors who plan to take advantage of this should start looking for rental income properties for sale in Little Rock since the city is experiencing a shortage in inventory.

Other Reasons Why People Move to Little Rock:

Cost of living: The cost of living in Little Rock is 4% lower than the national average, making it one of the cheapest places to live in the US.
Weather: Little Rock enjoys 119 days of clear weather.
Job market: Little Rock expects to see a 32.2% job growth in the next decade.

10. San Antonio, TX

Number of Traditional Listings: 7,384
Monthly Traditional Rental Income: $1,609
Traditional Cash on Cash Return: 1.52%
Traditional Cap Rate: 1.55%
Price to Rent Ratio: 20
Number of Listings for Sale: 1,815
Median Property Price: $389,202
Average Price per Square Foot: $238
Days on Market: 56
Walk Score: 37

San Antonio, TX, enjoys affordable housing with only $238 average price per square foot and a median price of $389,202. Additionally, residents also enjoy more affordable transportation expenses and gas prices, which are 11% lower than the national average.

While San Antonio, TX, is among the cheapest places to live in the US, it has low traditional cash on cash return and cap rate. Some neighborhoods in San Antonio may be suitable for traditional rental investments, while some aren’t.

To find a lucrative investment in San Antonio, it’s important to check the local neighborhood’s real estate market data and analysis. Mashvisor can provide information, including the neighborhood real estate comps, so you can decide whether a property can be a good investment or not.

Other Reasons Why People Move to San Antonio:

Cost of living: The cost of living in San Antonio is 14% lower than the national average, making it one of the cheapest places to live in the US.
Climate: San Antonio enjoys 105 clear days, making it a top option for those who prefer year-round warm weather.
Healthcare: The cost of healthcare in San Antonio is 9% lower than the national average.

How to Find the Best Cities for Traditional Rentals

While the top 10 cities mentioned above are among the cheapest places to live in the US, it does not necessarily mean that they are also good for investing in rental properties. To find the best place to buy rental property, you should check the real estate market data of the local neighborhood where you plan to invest. It allows you to review several metrics, such as the cash on cash return, cap rate, price to rent ratio, rental income, and median home value.

However, finding all of the said information can be tedious and time-consuming, and it’s also possible that you will not get an accurate figure. Fortunately, Mashvisor makes it easy for investors to get access to such important metrics.

All you need to do is type in the city or neighborhood of your choice when searching for a property. You will then access the list of properties for sale in that particular location based on your search criteria. To see the real estate market analysis, just click on the property that interests you and you’ll get an overview of the key information about the property.

In addition, you can also check if the property will be a profitable investment through Mashvisor’s rental property calculator. The calculator allows you to see how much income you can earn on an investment property based on your financing and expenses. You can enter your own figures to get a more customized result.

Mashvisor’s Rental Property Calculator allows investors to calculate the potential income on an investment property based on expenses and type of financing.

Furthermore, Mashvisor will help you decide on the best real estate strategy for a specific income property based on various metrics, including rent analysis, comparables, and insights.

If you’re ready to buy a profitable investment property in one of the cheapest places to live in the US, subscribe to any of Mashvisor’s available plans.

You can start a free trial or schedule a demo to get started.

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Top 10 Cheapest Places to Live in the US