12 Cheapest US Cities To Live In With Lowest Cost Of Living

With rising inflation rates, many U.S. residents have decided to move to cheaper cities to enjoy the lowest cost of living. Big cities such as New York have reported an astronomical increase in rent in recent months. Those who can work from anywhere are eyeing some of the cheapest cities in the U.S. to relocate.

Where are residents going to enjoy the lowest cost of living? Here are the 12 cheapest U.S. cities to live in this 2022:

1. Kalamazoo, Michigan

The city of Kalamazoo is the cheapest city to live in as of 2022 and one of the best places to retire for its low cost of living, which is 24.3% below the U.S. average. It has a metro (including Portage) population of 264,322. The median household income in Kalamazoo, Michigan, is $58,836. It is also three hours by car from the city of Chicago.

2. Harlingen, Texas

Harlingen's cost of living is 23.4% below the U.S. average. Located at the southernmost tip of Texas, Harlingen has a metro population (including Brownsville) of 443,554 and a median household income of $41,053. To its left is the popular Rio Grande and to the east is the Gulf of Mexico. Everything costs cheaper in Harlingen, including gasoline.

3. McAllen, Texas

Another city in Texas that is one of the cheapest to reside in is McAllen. It has an almost similar cost of living to Harlingen at 23.2% below the U.S. average. But its median household income is lower at $41,846. Bird-watching enthusiasts will love living in McAllen because it is on a major migration route. It is also home to the luxury birdhouse Quinta Mazatlan, which has more than 15 acres of birding habitat. Housing costs in McAllen, Texas are 42% lower than the national average. Healthcare expenses are 27% cheaper, while grocery items are 14% less costly.

4. Jackson, Mississippi

Jackson, Mississippi's cost of living is 20.4% below the U.S. average. Its median household income is $53,639, with median home values at $148,300. History buffs will enjoy retiring in this city, which is also popular among blues and ballet fans. Jackson holds the two-week USA International Ballet Competition every four years, drawing in dancers from all over the world. Mississippi is also tax-friendly for retirees.

5. Amarillo, Texas

Amarillo, Texas, has a cost of living slightly less than a fifth of the national average. It has a median household income of $56,055 and a median home value of $147,600. Residents here spend 40% less on housing-related costs, but their savings don't stop there. Trips to the optometrist are 35% cheaper than the national average, dry cleaning bills save you 28%, and repairs for a washer will be 15% cheaper. Amarillo also has a 3.1% unemployment rate, below the 4.8% national rate, with employers such as Tyson Foods, BSA Health System and CNS Pantex located in the city.

Other cities in Texas to consider for the low cost of living are Wichita Falls, where the median rent is $828, and Brownsville, with a median rent of $754.

6. Anniston, Alabama

With a cost of living 17.9% below the national average, Anniston is a good option for residents looking to be close to nature. It has a median household income of $50,128 and a median home value of $121,600. Its unemployment rate is 3.3%. If you choose to live in one of the Victorian homes Anniston is known for, you'll find that housing costs are 42% lower than the national average, though utilities are 25% more expensive. The city is near the Mountain Longleaf National Wildlife Refuge, a great spot for lovers of the outdoors. It is a fairly tax-friendly state.

7. Knoxville, Tennessee

Cities in Tennessee are some of the cheapest cities to live in. Knoxville's cost of living is only slightly higher than Anniston's, sitting at 17.7% below the national average. It has a median household income that is higher at $56,857 and an unemployment rate below 3%. Everything is cheaper in Knoxville, from food to transportation. This includes housing costs and apartment rents both 30% below the national average. History buffs can visit the battlefield remnants of the Civil War, where the city played a strategic part.

8. Joplin, Missouri

Residents of Joplin, Missouri, enjoy a cost of living 17.4% below the U.S. average and an unemployment rate of 2.2%. It has a median household income of $50,244 and a median home value of $126,200. Housing costs are 35% below average. Basic necessities, healthcare and transport are also cheaper. It is a regional medical center, with two major hospitals serving four-state areas such as Kansas, Oklahoma and Arkansas. General Mills, Schaeffler Group and Contract Freighters are some of the key employers in the area.

9. Augusta-Aiken, Georgia/South Carolina

The metro area Augusta-Aiken in Georgia/South Carolina is one of the cheapest cities to live in in the U.S., with a cost of living that is 16.4% below the national average. Median home values are slightly higher than the top 8 cheapest cities at $153,300, while the median household income is $55,049. The metro city is known for golf, cybersecurity companies, medicine and biotechnology. Housing costs stand 30% cheaper than the national average, and residents pay 15% less on utilities and transportation, with 10% savings on groceries.

10. Kokomo, Indiana

With a cost of living sitting at 16.4% below the national average, Kokomo, Indiana, attracts residents who want to save on transportation and groceries. The costs associated with healthcare and utilities are around the national average. The median household income is $56,387, and the median home value is $113,900. Kokomo is home to architectural and historical gems. It is also the longtime manufacturing hub for the global automotive industry. Some of its key employers are Chrysler Indiana Transmission, Aptiv, Haynes International and General Motors.

Fort Wayne, also located in Indiana, is another cheap U.S. city to live in, with 59% of residents owning their homes. South Bend is another cheap location to consider for its job market and quality of life.

11. Jackson, Tennessee

Another city called Jackson joins the cheapest cities to live in. This city in Tennessee has a cost of living 16.3% below the national average and a median household income of $48,146. The median home value is $123,300. Jackson, Tennessee, is 80 miles northeast of Memphis, another cheap city to consider for its low cost of living. Jackson is the regional center of trade in West Tennessee, with key employers, including Kellogg, Stanley Black and Decker, and Masco's Delta Faucet Company. Lower healthcare and housing expenses contribute to the low cost of living in Jackson.

12. Decatur/Hartselle, Alabama

Decatur/Hartselle in Alabama has a cost of living of 16.1% below the U.S. average and a median home value of $137,500. It has a median household income of $51,842 and an unemployment rate of 2.8%. The cities of Decatur and Hartselle in Alabama offer plenty of outdoor activities on top of savings in mortgage and rent that are 38% cheaper than the U.S. average. Decatur is home to one of the busiest ports on the Tennessee River. It also enjoys economic benefits from its proximity to Hunstville, where NASA's Marshall Space Flight Center is located.