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

The cost of living seems to increase every single day, and finances for families can become quite stressful. Luckily, the best affordable states to raise a family across the U.S. can help! But while finding a place to live that meets your budget is important, there’s more that goes into deciding if a place is truly the right fit. A solid local economy is important to ensure you’re able to find a good job, among other factors, including sufficient healthcare options, education opportunities, safety, kid-friendly things to do, and an overall good quality of life.

According to U.S. News & World Report, Arkansas has the lowest cost of living among the 50 states; however, it ranks quite low among factors such as economy, education, and healthcare. Oklahoma is another one of the most affordable states to live in the U.S, but it also ranks very low when it comes to important factors like healthcare and education. While affordability is always a desirable trait, it’s important to find out what exactly is offered within a state and which areas are best to live in before you make the big decision to move somewhere new. 

Best Affordable States To Raise a Family

Our list of the best affordable states to raise your family was compiled using data from the U.S. News & World Report’s 2024 state rankings, along with the cost of living index for each state. All states with a cost of living index below 100 (the national average) were compared using the following criteria from the U.S. News & World Report: healthcare, education, economy, infrastructure, fiscal ability, crime, and natural environment. From there, we created our list of the top 10 affordable states:

1. Nebraska
2. Iowa
3. Minnesota
4. South Dakota
5. Wyoming
6. Georgia
7. North Dakota
8. North Carolina
9. Wisconsin
10. Kansas

Think of Nebraska, and you probably see fields and fields of valuable crops. Be thankful, those crops power its economy and contribute to keeping its cost of living low!

1. Nebraska

• Cost of living: Ranked 7th out of the 50 states
• Average rent (all home sizes): $1,300
• Average home value: $259,400
• Great for: Tight-knit communities, strong economy, fiscal ability, education, outdoor activities, history

The Cornhusker State of Nebraska is one of the best family-friendly states to live in with a safe environment. It’s also home to a plethora of tight-knit communities and a solid economy. Top industries are primarily in agriculture and energy, and the “Golden Triangle” of corn — corn, livestock, and ethanol production — is what makes the overall economy of the state so strong.

Nebraska also ranks quite high when it comes to infrastructure, coming in at No. 5 in energy and No. 7 in transportation, according to U.S. News & World Report. Short-term fiscal ability is also one of the state’s strong suits coming in at No. 3. Nebraska has a strong public school system, as well, that families appreciate, along with impressive higher education options, including the University of Nebraska-Lincoln, Creighton University, and Union Adventist University. 

Besides these attractive qualities, Nebraska is renowned for its beautiful natural landscapes that are ideal for the whole family to enjoy. From the Pine Ridge region to the Sandhills, the stunning scenery of Nebraska has plenty of natural wonders to admire. Areas like the Homestead National Historical Park are ideal for the history buffs, as well.

Top 3 Family-Friendly Cities in Nebraska

• Omaha
• Lincoln
• Seward

Q: What state is the best state to raise a family? A: Nebraska comes in at the top of our list for the best state to raise a family!

2. Iowa

• Cost of living: Ranked 6th out of the 50 states
• Average rent (all home sizes): $1,150
• Average home value: $220,300
• Great for: Jobs, outdoor recreation, local history

As one of the most affordable states to live in the U.S. with a cost of living index of 89.7, Iowa boasts attractive qualities for families, in particular. Ranking at No. 3 in terms of opportunity, according to U.S. News & World Report, there are plenty of jobs available in the state within the agricultural industry. Other than farming, there are plenty of opportunities for jobs in fields like manufacturing, operating heavy machinery, and electricity production. 

Iowa is a great place to live for those who love to bike because of its numerous paved and scenic routes. The rolling hills, farmland, and prairies offer a wide variety of landscapes that cyclists can explore, whether they want to enjoy a leisurely ride or an intense workout. The Cedar Valley Nature Trail and the High Trestle Trail, for example, are well marked and maintained.

The Ho-Chunk and Meskwaki nations have a significant history in Iowa. These individuals have left a mark on the state's cultural and historical traditions, and there are a number of museums and historical sites in Iowa that exhibit the state's vast history, including the Herbert Hoover Presidential Library and Museum. 

Q: What state is the best for low-income families? A: Iowa and Kansas have some of the lowest cost of living indices on this list, which are well below the national average and more suitable for low-income families.

Top 3 Family-Friendly Cities in Iowa

• Orange City
• Mount Vernon
• West Des Moines

3. Minnesota

• Cost of living: Ranked 21st out of the 50 states
• Average rent (all home sizes): $1,575
• Average home value: $334,100
• Great for: Air and water quality, low pollution, strong healthcare, outdoor recreation, unique food scene

While it may be best known for its frigid cold weather and popular ice hockey scene, the state of Minnesota is one of the best family-friendly states to live in. (It’s actually ranked as one of the best and most affordable states to raise a family in the U.S.!) And with an impressive ranking of No. 2 in terms of natural environment, Minnesota has fantastic air and water quality along with low levels of pollution.

The nonprofit health organization, the Mayo Clinic, has headquarters in Rochester, which contributes to a lot of opportunities for healthcare workers. But besides healthcare, Fortune 500 companies like General Mills offer jobs in the manufacturing and retail fields.

Minnesota is known for its lakes — it’s even referred to as the “Land of 10,000 Lakes.” Areas like Lake Superior and Voyageurs National Park offer splendid and iconic views, which include interconnected bodies of water and beautiful forests. Besides the outdoors, residents of Minnesota appreciate the food scene, and you’ll find plenty of events for families that celebrate all kinds of cuisines, like the Minnesota State Fair. 

Top 3 Family-Friendly Cities in Minnesota

• Minneapolis
• Eden Prairie
• St. Paul

Q: Where are the best affordable places to raise a family in Colorado? A: Colorado didn't make this list because it has a much higher than average cost of living, but the best affordable places to raise a family in Colorado are Boulder, Fort Collins, and Denver.

 

South Dakota is one of the few states that boasts no state income tax, automatically bumping it up the affordability rankings.

 

4. South Dakota

• Cost of living: Ranked 19th out of the 50 states
• Average rent (all home sizes): $1,250
• Average home value: $306,900
• Great for: No state income tax, job opportunities, education, outdoor recreation

Sure, it’s the home of Mount Rushmore, but there’s a lot more to the state of South Dakota than most of us really know about! Boasting affordable communities with no state income tax, South Dakota has a reputation for a slower-paced lifestyle with lots of outdoor recreation available and friendly residents. In addition to the iconic Mount Rushmore, spots like the Badlands National Park offer landscapes that are hard to find elsewhere and include tall and rugged canyons that are perfect for hikes and camping.

How are job opportunities in South Dakota? Apart from agriculture, the state has a strong tourism industry, thanks to Mount Rushmore and all of its fabulous parks. South Dakota also ranks No. 15 in education, according to U.S. News & World Report. 

Top 3 Family-Friendly Cities in South Dakota

• Sioux Falls
• Brandon
• Tea

5. Wyoming

• Cost of living: Ranked 16th out of the 50 states
• Average rent (all home sizes): $1,275
• Average home value: $354,100
• Great for: Fiscal stability, job opportunities, outdoor recreation, rodeos

Wyoming has been a popular state to relocate to due to its affordability and beautiful outdoor features, but it’s also an ideal state to raise a family in. With the best short-term fiscal stability ranking in the entire country, Wyoming is home to a number of major industries such as agriculture and energy. The state is also one of the top coal producers in the country. 

The main reason why people know of Wyoming is its various national parks, like Yellowstone National Park, where you can find the biggest hot spring in the country — Grand Prismatic Spring — along with geysers, including Old Faithful and Beehive Geyser. Wyoming has also stayed true to its culture over time, and its state sport is even the rodeo! People from all over the world will travel to Wyoming to catch an event like the Great American Cowboy PRCA Rodeo. 

Top 3 Family-Friendly Cities in Wyoming

• Cheyenne
• Casper
• Laramie

Q: Where are the best affordable places to raise a family in California? A: California didn't make this list because it has a much higher than average cost of living, but the best affordable places to raise a family in California are Irvine, Sunnyvale, and Carslbad.

 

Georgia has something for everyone — corporate jobs and big-city amenities in Atlanta, wide-open spaces outside the city, and a great higher education system.

 

6. Georgia

• Cost of living: Ranked 12th out of the 50 states
• Average rent (all home sizes): $1,950
• Average home value: $326,600
• Great for: Fiscal stability, education, rich history, outdoor recreation

There’s a lot to love about living in Georgia, and you can’t go wrong with choosing to settle down in a place with a strong economy either! It’s an area with lots of opportunity, as it’s home to numerous business headquarters, including Delta and Coca-Cola. And the city of Atlanta, in particular, is also home to top-notch higher-education options, including Emory University and the Georgia Institute of Technology.

With an affordable cost of living index of 91, Georgia is definitely the place you want to move to if you’re trying to save money. And with a long-term fiscal stability ranking of No. 10 out of the 50 states, according to U.S. News & World Report, the economic future of Georgia continues to look bright. 

Home to a beautiful landscape, families living in Georgia can also easily explore the state’s fascinating surroundings with lots of fun things to do. Some popular family-friendly spots include Six Flags Over Georgia, Wild Animal Safari at Pine Mountain, and Tallulah Gorge State Park. 

Top 3 Family-Friendly Cities in Georgia

• Alpharetta
• Atlanta
• Sandy Springs

7. North Dakota

• Cost of living: Ranked 23rd out of the 50 states
• Average rent (all home sizes): $1,075
• Average home value: $263,400
• Great for: Strong economy, education, infrastructure, outdoor recreation

With a strong economy in agriculture and lots of dedication to farming, North Dakota is a peaceful place to settle down that offers a high quality of life. Along with Theodore Roosevelt National Park — home to many badlands, trails, and wildlife — the North Country Trail is one of the largest trails in the entire country.

The state offers high-quality higher education, as well, with options like the University of North Dakota and North Dakota State University. The public education system matches, with a variety of top-ranked districts and schools to choose from. 

Figuring out infrastructure is also another important part of moving somewhere new, and North Dakota ranks No. 1 in the country, according to U.S. News & World Report. Transportation, energy, and internet access are all factors taken into consideration when deciding on this important ranking. 

Top 3 Family-Friendly Cities in North Dakota

• Fargo
• Valley City
• Bismarck

8. North Carolina

• Cost of living: Ranked 25th out of the 50 states
• Average rent (all home sizes): $1,825
• Average home value: $328,700
• 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 who are looking to grow their lifestyles and encounter new opportunities. The economy once thrived on tobacco and textile production, but it has since taken a turn. Banking is huge in the state now, particularly in Charlotte, along with technology and pharmaceutical industries. 

And aside from being an outdoorsy state, North Carolina also produces a variety of agricultural and livestock products that are renowned for their quality. You’ll find great restaurants and BBQ places throughout the state, particularly in areas like Asheville and Fayetteville.

Top 3 Family-Friendly Cities in North Carolina

• Cary
• Charlotte
• Raleigh

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

9. Wisconsin

• Cost of living: Ranked 24th out of the 50 states
• Average rent (all home sizes): $1,300
• Average home value: $306,600
• Great for: Strong economy, sports culture, great dairy food

Wisconsin is known for its vibrant culture and natural beauty, as well as its variety of affordable urban and rural settings. Over the years, old-line manufacturing has played a significant role in Wisconsin's economy, as it is one of the largest industries in the state and generates billions of dollars annually. Another major contributor to the state's economy is dairy, however, and Wisconsin is famous for cheesemaking with many prominent producers calling the state home. The state also hosts a variety of festivals and restaurants that serve locally made food, including the Warrens Cranberry Festival and the Sweet Corn Festival.

Wisconsin is also known for its passionate sports culture, and the state has several collegiate and professional teams that call it home. One of the most popular teams in the country is the Green Bay Packers, with the cheeseheads cheering them on.

Top 3 Family-Friendly Cities in Wisconsin

• Madison 
• Green Bay
• Milwaukee

10. Kansas

• Cost of living: Ranked 3rd out of the 50 states
• Average rent (all home sizes): $1,250
• Average home value: $229,000
• Great for: Strong economy, education, cultural activities

With the lowest cost of living index of 87.7, Kansas is one of the best affordable states to raise a family on this list. This prairie state plays a key role in the agriculture industry and is a prominent producer of goods like wheat and beef. Numerous top-notch institutions, including the University of Kansas and Wichita State University, are also based in the state, which help contribute to the strong economy. These educational institutions offer a wide range of graduate and undergraduate programs and are both highly regarded.

Cultural institutions are popular in the state, as well, from theaters to art galleries to museums. The Nelson Atkins Museum of Art is one example of a major art gallery in the state, and it’s home to more than 40,000 works of art. Speaking of art, Kansas is also known for being the location of the Wizard of Oz movie and book and is home to the OZ Museum.

Top 3 Family-Friendly Cities in Kansas

• Overland Park
• Wichita
• Topeka

Q: What is the cheapest state to raise a family in? A: Kansas has the lowest cost of living index on this list.

PODS has the know-how to help you move to one of the most affordable states to raise a family

PODS Can Help You Move to an Affordable Family-Friendly State

PODS can help you move to one of the most affordable states to raise a family! They can deliver a portable moving and storage container right to your driveway, where you can pack and load all of your belongings at your own pace. Once you're ready, PODS will pick up and take your container to your new home. The best part? One month of storage is included in the price of your move, so you can easily store away all of your belongings without a rush. 

Editor’s note: Average rent prices and 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.