The Cheapest States to Live In With Highest Pay: 2023 Edition

Looking for the sweet spot where your paycheck stretches further and job opportunities are plentiful? A comprehensive analysis of 2023 housing data reveals that certain U.S. states offer an exceptional combination of affordable real estate and strong employment prospects. We’ve identified the top 10 regions based on Zillow’s March 2023 Home Value Index and Rental Index, combined with labor market metrics from the Bureau of Labor Statistics.

The ranking factors in three key indicators: median home values, average rental prices, and employment conditions (labor force participation and unemployment rates). These states represent the best-paying jobs and cheapest housing options currently available across America.

Top 10 Most Affordable States With Strong Job Markets

10. Arkansas

• Average monthly rent: $1,147.51
• Median home value: $176,107.12
• Workforce participation: 58.1%
• Jobless rate: 3%

Arkansas leads as the most affordable option for those seeking budget-friendly real estate without sacrificing employment opportunities.

9. Oklahoma

• Average monthly rent: $1,032.97
• Median home value: $189,084.69
• Workforce participation: 60.8%
• Jobless rate: 3%

Oklahoma stands out with rental costs below $1,050 monthly, making it an excellent cheapest state to live in for budget-conscious professionals.

8. Iowa

• Average monthly rent: $1,072.62
• Median home value: $201,545.64
• Workforce participation: 66.8%
• Jobless rate: 2.8%

Iowa demonstrates strong labor force engagement exceeding 66%, indicating robust employment pathways for newcomers.

7. Kansas

• Average monthly rent: $898.50
• Median home value: $208,882.50
• Workforce participation: 65.8%
• Jobless rate: 2.9%

Kansas offers the lowest average rent on this list at under $900 monthly, combining affordability with steady employment conditions.

6. Wisconsin

• Average monthly rent: $1,016.02
• Median home value: $262,565.60
• Workforce participation: 66.0%
• Jobless rate: 2.5%

Wisconsin balances reasonable housing costs with an unemployment rate below 2.5%, creating favorable conditions for job seekers.

5. Missouri

• Average monthly rent: $1,011.28
• Median home value: $226,968.21
• Workforce participation: 62.9%
• Jobless rate: 2.5%

Missouri provides mid-range housing expenses paired with minimal joblessness, appealing to those seeking stability.

4. Alabama

• Average monthly rent: $1,318.07
• Median home value: $201,212.15
• Workforce participation: 57.4%
• Jobless rate: 2.3%

Despite slightly higher rental rates, Alabama compensates with exceptionally low home values and minimal unemployment.

3. Nebraska

• Average monthly rent: $1,120.85
• Median home value: $242,559.96
• Workforce participation: 68.9%
• Jobless rate: 2.1%

Nebraska ranks among the highest in workforce participation at nearly 69%, indicating strong demand for professional talent.

2. North Dakota

• Average monthly rent: $1,051.12
• Median home value: $245,225.87
• Workforce participation: 68.5%
• Jobless rate: 2.1%

North Dakota combines sub-2.2% unemployment with consistent workforce engagement, making it ideal for those prioritizing employment security.

1. South Dakota

• Average monthly rent: $1,147.71
• Median home value: $283,596.45
• Workforce participation: 67.5%
• Jobless rate: 1.9%

South Dakota claims the top position with the nation’s lowest unemployment rate at 1.9%, representing the cheapest state to live in with the most robust job market for ambitious professionals.

Why These Regions Stand Out

These ten states consistently demonstrate that affordable housing and employment opportunity aren’t mutually exclusive. The data reflects March 2023 figures from Zillow’s comprehensive housing index and official labor statistics, ensuring reliable information for relocation decisions. Each location offers distinct advantages—whether prioritizing minimal housing costs, maximum job availability, or balanced living expenses.