Southern Cities with a low Cost of Living
Rankings based on the ACCRA Cost of Living Index produced by the Council for Community and Economic Research. The Index measures relative price levels for housing, utilities, transportation, grocery items, health care and miscellaneous goods and services (it does not include taxes). A composite score of 100 reflects the national average. So scores lower than 100 reflect a lower-than average cost of living, and scores higher than 100 reflect a higher-than average cost of living. Median household income and average home prices are from the Toronto-based Martin Prosperity Institute. We sampled all U.S. cities with metropolitan area populations of at least 75,000.
Fort Smith, Ark. Cost of Living Index: 85 - Metro Population: 288,595
Median Household Income: $35,726 - Average Home Price: $223,885
Arkansas is a low-cost, low-tax state, and its second largest city, Fort Smith, is no exception. Housing, grocery and transportation costs here are well below the national average. And compared with the most-expensive city on our list, New York, everything in Fort Smith is a bargain.
Pueblo, Colo. Cost of Living Index: 85 - Metro Population: 154,371
Median Household Income: $39,570 - Average Home Price: $197,037
This economic hub of southeastern Colorado is just 103 miles from Denver but has a much lower cost of living. Homes in Pueblo are cheaper, on average, than in the rest of the state and nation. Pueblo residents also benefit from Colorado's low state income-tax rate of 4.64% of federal taxable income.
Harlingen, Tex. Cost of Living Index: 86 - Brownsville/Harlingen Metro Population: 385,274
Median Household Income: $28,026 - Average Home Price: $221,445
Housing prices in the southernmost city in Texas, on the Gulf coast near the Mexican border, are well below national average and are big factor in the city's overall low cost of living. The average cost of grocery items, transportation and health care also fall below the national average
but utility costs are about 10% higher here. Brownsville/Harlingen has long been a popular destination for retirees on fixed incomes.
McAllen, Tex. Cost of Living Index: 86 - McAllen/Edinburg Metro Population: 706,039
Median Household Income: $28,328 - Average Home Price: $213,383
Located only 50 miles away from Brownsville/Harlingen, this city in the southern tip of Texas also has extra-low housing costs. However, utility costs are higher than the national average.
Johnson City, Tenn. Cost of Living Index: 86 - Metro Population: 193,457
Median Household Income: $36,853 - Average Home Price: $217,986
Affordable homes and below-average utility, transportation and health-care costs keep the cost of living low in this city on the western edge of the Blue Ridge Mountains. It's about a 2 hour drive from Charlotte, N.C., or Knoxville, Tenn. To top it off, Tennessee has no state income tax.