This Is the No. 1 Place to Live in the U.S. for Affordability and Cost of Living

In a 2025 Pew Research Center survey, a majority of Americans said the economy was either only in “fair” or “poor” shape, with 63 percent citing “inflation” as a major concern. If this is your top priority too, know that one, we can relate, and two, GoBankingRates may have a few suggestions on where you can relocate to in the U.S. to experience a more affordable lifestyle. 

The website released its “Most Livable Destinations” list, including 10 spots where you can live a great life without a six-figure income. 

For this report, GoBakingRates first sourced the 50 best places to live from U.S. News & World Report’s “250 Best Places to Live in the U.S. in 2025-2026.” Next, it looked into each city’s average monthly and annual rent, which it sourced from Zillow’s April 2025 data. It also examined each city’s annual expenses for groceries, health care, utilities, and transportation, all based on the Bureau of Labor Statistics’ 2023 Consumer Expenditure Survey data points.

And to determine the salary needed in each place, GoBankingRates followed the “50/30/20 budget rule,” which Investopedia explained, “suggests that you spend 50 percent of your budget on needs, 30 percent on wants, and 20 percent on your savings goal,” with housing falling under that “need” category too.  

After reviewing all the data, GoBankingRates named Laredo, Texas, the most affordable city, thanks to its annual cost of living expenses for homeowners at just $36,008 and the salary needed for homeowners at $72,015. It also found that the annual cost of living expenses for renters was just a touch higher at $36,888, and the salary needed for renters was also a smidge higher at $73,776.

Texas also took the second-place spot thanks to the affordability of McAllen, where the annual cost of living expenses for homeowners is just $36,287, with the salary needed for homeowners at $72,574. The city’s annual cost of living expenses for renters is $38,742, with the salary needed for renters at $77,484. 

These two Texas locations are joined by Moore, Oklahoma, in third, followed by Midland, Michigan; Broken Arrow, Oklahoma; Springdale, Arkansas; Saint Peters, Missouri; Eau Claire, Wisconsin; Sioux Falls, South Dakota; and West Des Moines, Iowa, rounding out the top 10.

And while each of these spots requires less than $100,000 a year, GoBankingRates noted that all of the cities require an above-average salary to live comfortably.”

It added, “The average salary in the U.S. is about $67,000, but you’ll need to earn over $70,000 to live comfortably in the top city for renters and over $72,000 to live in the top city for homeowners.”

See the full report at gobankingrates.com.