Best Affordable States To Raise a Family in the U.S.

As prices for almost everything climb and families find their finances stretched thin, relocating to a state with a low cost of living can seem like a perfect solution. But while it’s important to find a place to live that meets your budget, there’s more than just numbers to consider. Factors like the job market, healthcare, and schools play a role in determining whether a destination is the right fit. To help you sort through it all, we’ve done the research for you and identified the top 10 best affordable states to raise a family.

10 Best Affordable States To Raise a Family

Our list of the best affordable states to raise your family is based on data from the U.S. News & World Report 2025 state rankings and the cost of living index for each state. We compared all states with a cost of living index below 100 (the national average) using criteria including healthcare, education, economy, infrastructure, culture, crime, and natural environment. From there, we created our list of the top 10 best affordable states to raise a family:

• Nebraska
• Iowa
• Minnesota
• South Dakota
• Wyoming
• Georgia
• New Mexico
• North Carolina
• Wisconsin
• Kansas

Nebraska’s corn and ethanol production power the state’s economy, helping to keep living costs low.

1. Nebraska

• Cost of living: 12.2% below the national average
• Average rent (all home sizes): $1,150
• Average home value: $267,300
• Great for: Tight-knit communities, strong economy, fiscal ability, education, outdoor activities, history

The Cornhusker State is one of the best family-friendly states to live in across the U.S. It’s also home to tight-knit communities, great recreation opportunities, and a solid job market with just 3 percent unemployment. The top industries are agriculture and energy, with the “Golden Triangle” — corn, livestock, and ethanol production — keeping the state economy humming. As for education, Nebraska’s public schools are strong and post-secondary options are plentiful, including the University of Nebraska-Lincoln, Creighton University, and Union Adventist University.

Besides these attractive qualities, Nebraska offers beautiful natural landscapes that are ideal for the whole family to enjoy. From the Nebraska National Forest in the Pine Ridge region to the gorgeous Sandhills, the state has plenty of natural wonders to experience. There’s also intriguing fodder for history buffs, including favorites like Homestead National Historical Park.

2. Iowa

• Cost of living: 19.9% below the national average
• Average rent (one-bedroom): $1,050
• Average home value: $224,800
• Great for: Jobs, outdoor recreation, local history

“Is this heaven?” “No, it’s Iowa.” The famous line from “Field of Dreams” still proves true in the Hawkeye State, where the cost of living is one of the lowest in the country. Thanks to its beautiful landscape and strong economy, Iowa is one of the most affordable states for families, outdoor lovers, and job seekers in agriculture, manufacturing, and energy.

Cyclists enjoy pedaling along scenic pathways like the Cedar Valley Nature Trail and the High Trestle Trail, rolling through winding hills, farmland, and prairies. The Ho-Chunk and Meskwaki nations are honored in several museums and historical sites in Iowa, while the Herbert Hoover Presidential Library and Museum houses archives commemorating the state's only Iowa-born U.S. president.

3. Minnesota

• Cost of living: 2.8% below the national average
• Average rent (one-bedroom): $1,450
• Average home value: $335,400
• Great for: Schools, air and water quality, low pollution, healthcare, outdoor recreation, diversity, food scene

Minnesota may be famous for frigid weather and ice fishing, but it’s also one of the best family-friendly states to live in — and ranked No. 4 overall by U.S. News and World Report for 2026. With consistently high marks for air and water quality and notably low pollution, the Land of 10,000 Lakes has long been a favorite of eco-conscious families. The economy is equally resilient, thanks in part to Rochester-based Mayo Clinic, a leading nonprofit that provides abundant job opportunities for workers and unparalleled healthcare for patients. Fortune 500 companies like General Mills anchor the manufacturing and retail industries, giving residents a range of career opportunities.

Beyond its economic strengths, Minnesota’s natural beauty and culture help define its appeal. Destinations like Lake Superior and Voyageurs National Park showcase scenery that includes interconnected waterways and deep forests. And when they’re not hiking, boating, or fishing, families can enjoy a lively, diverse food scene in Minnesota’s many cities and towns, along with beloved community events like the annual Minnesota State Fair.

South Dakota boasts no state income tax and a cost of living more than 10% below the national average.

4. South Dakota

• Cost of living: 89.3% below the national average
• Average rent (one-bedroom): $1,000

• Average home value: $307,400

• Great for: No state income tax, job opportunities, education, outdoor recreation

The home of Mount Rushmore offers affordability, natural beauty, and a relaxed pace that make it an appealing option with room to breathe. With no state income tax and plenty of outdoor recreation, the state offers the conveniences of everyday life alongside some of the most striking landscapes in the nation. Beyond the iconic Mount Rushmore, South Dakota destinations like Badlands National Park attract millions of visitors every year who hike, camp, and explore dramatic, rugged canyons not found in many other places.

When it comes to the job market, South Dakota has a strong agricultural base along with a thriving tourism industry. Education is another bright spot, with an impressive No. 15 national ranking overall from U.S. News & World Report — and not just in the K-12 arena: Pre-school enrollment jumped by 14 percent from 2024 to 2025. Another news-you-can-use nugget: South Dakota ranks second in the nation for road quality.

5. Wyoming

• Cost of living: 2.5% below the national average
• Average rent (all sizes): $1,250
• Average home value: $352,900
• Great for: Fiscal stability, job opportunities, outdoor recreation, rodeos

Wyoming is a popular state to relocate to, not just for its affordability and beautiful outdoor landscapes, but also because it’s an ideal state for raising a family. With the best short-term fiscal stability ranking in the country, the Cowboy State is strong in a number of major industries including agriculture and energy. It’s also a top coal producer, adding to the economic foundation with a range of job opportunities.

The state’s natural wonders are what most people know about Wyoming, particularly its magnificent federal lands. Yellowstone National Park is home to the biggest hot spring in the country, the Grand Prismatic Spring, along with iconic geysers like Old Faithful and Beehive Geyser. Wyoming has also stayed true to its cowboy heritage — rodeo is the state sport, after all. People worldwide visit for events like the Great American Cowboy PRCA Rodeo, which showcases the culture the state has celebrated for generations. 

Georgia has something for everyone — from big cities like Atlanta to beachy hotspots like Jekyll Island (pictured).
(Source: Explore Georgia via Facebook)

 6. Georgia

• Cost of living: 5.5% below the national average
• Average rent (one-bedroom): $1,450
• Average home value: $326,000
• Great for: Fiscal stability, education, rich history, outdoor recreation

There’s a lot to love about living in Georgia, especially if you’re looking for one of the best affordable states to raise a family. More than a handful of heavyweight companies call the Peach State home, including Delta, UPS, and Coca-Cola, and the state also stands out as a hub for higher-ed leaders like Emory University, Georgia Tech, and the University of Georgia. With a fairly comfortable cost of living and a long-term stability ranking of No. 10 in the nation, Georgia’s economic future looks solid.

Georgia also offers opportunities in the great outdoors, from the lush North Georgia mountains to the Southeast coastal destinations of historic Savannah and the Golden Isles. Atlanta, the capital city, is home to some of the state’s best places to live thanks to a thriving arts, dining, and entertainment scene. It’s also the site of some of the most important landmarks in America, drawing visitors — and locals — by the millions, including the Martin Luther King Jr. National Historical Park and Preservation District and the Jimmy Carter Presidential Library and Museum, both vital players in ongoing advocacy for social and racial justice.

7. New Mexico

• Cost of living: 11.6% below the national average
• Average rent (one-bedroom): $1,250
• Average home value: $308,000
• Great for: Diversity, rich history, arts, outdoor recreation

The almost otherworldly formations of Carlsbad Caverns and White Sands National Parks are just two destinations in The Land of Enchantment, a state also known for its rich Native American and Hispanic heritage and vibrant arts culture. It’s also known as one of the best affordable states to raise a family, thanks to a solid business climate in cities like Albuquerque and Santa Fe, where diverse job opportunities are available in tech, healthcare, and creative industries.

Education and the arts are strong draws for families, as well. New Mexico’s public schools are on the rise, with many districts emphasizing innovation and community engagement programs to bolster student achievement. And for art lovers, Santa Fe’s Georgia O’Keeffe Museum celebrates one of the nation’s most important contemporary icons, and the city’s countless galleries showcase both established and up-and-coming artists. Albuquerque serves as more of a business center, but also has the distinction of being a favorite fictional home for anti-heroes (Hello, Carol).

8. North Carolina

• Cost of living: 91% below the national average
• Average rent (one-bedroom): $1,375
• Average home value: $328,600
• Great for: Strong economy, education, fiscal stability, outdoor recreation, unique food

Ranked highest in economy and fiscal stability, North Carolina is an ideal place to live for families. While the state’s economy once revolved around tobacco and textiles, it has since shifted to banking: Charlotte is the second-largest financial hub in the U.S. Tech and pharmaceuticals are also important job providers across the state. The Research Triangle, in particular, is a thriving center for innovation and discovery, with Duke University, North Carolina State University, and the University of North Carolina at Chapel Hill all within minutes of one another.

Like many of the best affordable states to raise a family, the Tar Heel State is rich in outdoor beauty and recreational opportunities. Asheville, in the Blue Ridge Mountains of the west, is a charming — but quickly growing — destination for the arts, history, and music. And on the other side of North Carolina, the Outer Banks offer about 100 miles of beaches, touristy coastal towns, and plenty of family-friendly activities.

If you’re looking to flex your inner outdoorsman, Wisconsin is an underrated gem.

9. Wisconsin

• Cost of living: 10.1% below the national average
• Average rent (one-bedroom): $1,400
• Average home value: $318,400
• Great for: Strong economy, sports culture, great dairy food

Right in the middle of the cost of living index at 25th out of 50, Wisconsin offers a mix of vibrant culture, natural beauty, and both urban and rural communities. Old-line manufacturing has played a significant role in Wisconsin's economy, generating billions of dollars annually, while dairy farming — especially cheesemaking — still thrives statewide. Locals host a variety of annual events celebrating Wisconsin’s culinary traditions, including the Warrens Cranberry Festival and the Sun Prairie Sweet Corn Festival.

Wisconsin is also known for its passionate sports fans — Cheeseheads, anyone? — who cheer on the Green Bay Packers every season at their beloved Lambeau Field, no matter the weather. Besides football, the arts and dining are bustling in cities including Madison, the capital and home to the University of Wisconsin, and Milwaukee, “Brew City,” site of the historic Miller and Anheuser-Busch breweries, among others. Schools here are strong overall, with a No. 7 ranking nationwide for K-12 in 2026 and No. 10 for higher ed. 

10. Kansas

• Cost of living: 18.9% below the national average
• Average rent (one-bedroom): $1,150
• Average home value: $235,900
• Great for: Strong economy, education, cultural activities

With a cost of living index of 87.7, Kansas is one of the best affordable states to raise a family on our list. The Sunflower State plays a key role in the national agriculture industry and is a prominent producer of goods like wheat and beef. Top-notch institutions, including the University of Kansas and Wichita State University, are based here, contributing to innovation, research, and the state’s economy.

Families have plenty of activities to enjoy in Kansas, particularly in the bigger cities, including theater, dining, and museums like the Nelson Atkins Museum of Art. Wamego, just outside Topeka and Kansas City, hosts the OZ Museum, celebrating Dorothy, Toto, and the gang. And Kansas City also boasts legendary BBQ, which originated on the Missouri side of the city but can be found in many iconic spots over the border, too, including Joe’s Kansas City. Small towns and local festivals showcase the state’s warm, welcoming communities, set under wide-open skies and sometimes wild, dramatic weather.

Best Affordable States To Raise a Family — FAQs

Q: What is the best state to start a family?
A: Based on factors like schools, jobs, health insurance, and life expectancy, Massachusetts and Minnesota take the top spots for raising a family. While the Bay State is also one of the most expensive in the nation, Minnesota has a more reasonable cost of living as a frontrunner on our list of the best affordable states to raise a family. The state has great opportunities for young families without breaking the bank.

Q: What is the most affordable and safe state to live in?
A: The North Star State strikes again. Based on the intersection of affordability and overall crime data, Minnesota takes the No. 1 spot, ranking the 30th most expensive and the 13th safest in the nation — and one of the best family-friendly states to live in. They don’t call it Minnesota Nice for nothing!

Q: What is the cheapest state to raise a family in?
A: Kansas scores the lowest cost of living index on our list, at 88.8.

Q: Where are the best affordable places to raise a family in California?
A: The Golden State is pretty pricey, so it didn't make our list. But some of the best affordable places to raise a family in California are Fresno, Irvine, and Carlsbad.

Q: Where are the best affordable places to raise a family in Colorado?
A: Like California, Colorado didn't make this list because it has a much higher-than-average cost of living. But, like the best affordable places to raise a family in California, there are some spots in Colorado that won’t put a damper on your cost of living. The best affordable places to raise a family in Colorado are Boulder, Fort Collins, and Denver.

Q: What state is the best for low-income families?
A: Iowa and Kansas rank 44th and 47th, respectively, based on the average cost of living across the U.S. They’re also two of the best states to raise a family based on our criteria.

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Editor’s note: Average rent prices were obtained from RentCafe and Zillow; average home values were obtained from Zillow. For ease of reading, monthly rental prices were rounded to the nearest $25 and home values were rounded to the nearest $100. Home values in the millions were rounded to the nearest $100,000. Cost of living averages were obtained from Bestplaces.

_{*This article was written on behalf of PODS Enterprises, LLC (“PODS”). PODS does not warrant the completeness or accuracy of any information contained in this article and disclaims any liability for reliance upon the content herein.}