When looking at the overall cost of living, Oklahoma is currently one of the cheapest U.S. states. According to the latest index, its score is 83.5, compared with the national average of 100. This means that basic expenses there are approximately 16.5% lower than the U.S. average.
At the same time, Arkansas may rank first in other comparisons. This is not a contradiction but a difference in methodology: some studies use annual data, while others use more recent quarterly prices from cities and metropolitan areas.
Where in the U.S. Is It Cheapest to Live?
Oklahoma takes the lead primarily because of its affordable housing. Rent or mortgage payments usually take up the largest part of a household budget, and housing costs there are noticeably below the national average. The index for this category is 66.9, compared with the national level of 100.
This means that renting an apartment or buying a house in Oklahoma is cheaper on average than in most states. Transportation, groceries, utilities, and healthcare are also relatively inexpensive, although the difference between individual cities can be significant.
According to annual federal data, Arkansas is considered the cheapest state, with an index of 86.9. Mississippi is close behind with an index of 87.0, while Iowa and Oklahoma both have a score of 87.8. In any case, Oklahoma and Arkansas are among the states with the lowest everyday expenses.
Which States Are Among the Most Affordable?
According to data for the first quarter of 2026, the list looks like this:
- Oklahoma — 83.5
- Alabama — 85.0
- Mississippi — 86.2
- Kansas — 87.6
- West Virginia — 87.9
- Indiana — 88.3
- Iowa — 88.6
- Missouri — 88.6
- Tennessee — 88.9
- Arkansas — 89.1
All these states are cheaper than the national average. Most of them are located in the South and the Midwest. The highest living costs are traditionally found in Hawaii, California, Massachusetts, New York, and other coastal regions.
Why Does Living in Oklahoma Cost Less?
The main reason is relatively low real estate prices. When a person spends less on rent or a mortgage, it immediately reduces the overall monthly budget.
Oklahoma also does not experience the same pressure on the housing market as California, New York, or major cities in Florida. It has a lower population density, less demand for apartments in certain areas, and cheaper land.
Everyday expenses such as parking, household services, eating out, and car repairs may also cost noticeably less. However, this already depends on the specific city.
Oklahoma City and Tulsa are more expensive than smaller communities. Even within one city, the difference between neighborhoods can be significant. Therefore, the average index gives a general picture but does not show exactly how much a particular person will spend.
Why the Cheapest State Is Not Always the Most Advantageous
Low prices do not automatically mean that moving will be financially beneficial. Income also matters. If salaries in the region are lower, savings on housing may barely be noticeable.
Before moving, it is worth checking:
- salary levels in your profession
- the number of job openings
- rental prices in a specific city
- the cost of health insurance
- local taxes
- car expenses
- the availability of public transport
- the quality of schools, hospitals, and other infrastructure
In many inexpensive states, living without your own car is difficult. The budget will need to include fuel, insurance, maintenance, parking, and possibly car loan payments. Sometimes these expenses take away a significant part of the savings on rent.
Who Might Oklahoma Suit?
Oklahoma is especially appealing to people with remote jobs or a stable income that does not depend on the local labor market. The state may also suit retirees, families that want to buy a spacious home, and professionals whose occupation is in demand in the region.
Those moving from expensive coastal states will notice the difference the most. After California, New York, or Massachusetts, housing expenses in Oklahoma may seem considerably more manageable.
According to the latest quarterly index, Oklahoma can be called the cheapest U.S. state. Based on annual federal data, Arkansas ranks first. Both options are among the most affordable, but it is better to choose a place to live not only by its ranking, but also by the specific city, income level, transportation, and personal needs.