If You Make $50K, These 5 States Will Make You Feel Rich
According to a recent Marist University poll, 70% of Americans admitted that the cost of living in their area is not very affordable or not affordable at all for the average family. It's worth noting that this is the highest figure since the survey started in 2011.
The survey also found that about a quarter of Americans have higher monthly expenses than income, and 35% of respondents reported that their finances have worsened over the past year.
While it's evident that the cost of living has gone up across the nation, there are still states where you can stretch your money. MoneyLion consulted experts and data to identify which states offer the lowest living costs.
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States With a Lower Cost of Living
Based on data from the U.S. Bureau of Labor Statistics (BLS), the average American household spends $78,535 annually. This means that in many states, an annual salary of $50,000 would leave you struggling to pay your bills -- especially if you're in a one-income household. However, the good news is that there are states with a lower cost of living where families on lower incomes can still live well.
Clayton Eidson, the founder and CEO of AZ Health Insurance Agents, noted that a $50,000 salary can go a long way in a state where the cost of living is below the national average and you're not depleting your salary on day-to-day living costs.
"States such as Mississippi, Oklahoma and West Virginia are regularly the lowest-cost states, as prices on housing, food and transportation are lower," Eidson said. "In most of these locations, one can live comfortably on less than $40,000 per annum, which leaves them with more money to save, pay off debt or invest."
With the overall cost of living rising nationwide, it's vital that Americans find a home they can afford without constantly feeling behind.
"A person's income is merely one factor in determining their overall quality of life," remarked Frank Grimes, the president and owner of Associates Home Loan of Florida Inc. "By selecting a state that has low housing costs, reasonable taxes and everyday living expenses that remain relatively consistent, a modest salary may feel surprisingly comfortable."
The bottom line: When you live in a reasonably priced area and can save on housing costs (rent or mortgage payments), you can have a higher disposable income, leaving you feeling richer.
States Where a $50,000 Salary Will Make You Feel Rich
Here are the five states where you could live comfortably on a $50,000 salary and have money left over.
For the cost-of-living information, MoneyLion used the Missouri Economic Research and Information Center (MERIC) cost-of-living index to find the cheapest states to live in as of the third quarter of 2025. The data used is the national average cost-of-living index, set at 100. A score of 84.4 for Oklahoma indicates it is 84.4% of the national average, or, put another way, 15.6% below the average. Average home prices came from Zillow, and median annual salaries from Income by ZIP Code.
1. Oklahoma
Cost-of-living index: 84.4
Median household income: $63,603
Average home price: $215,627
Grimes noted that Oklahoma has relatively low housing, transportation and daily living costs, making it easier for people earning a $50K household income to live well rather than feel left behind. Oklahoma is at the top of the list because it has the lowest housing index in the nation. You can find a home for around $200,000 in a large metropolitan area like Oklahoma City, which is well below the national average of $359,241.
2. Mississippi
Cost-of-living index: 85.5
Median household income: $54,915
Average home price: $187,902
Affordable housing in Mississippi has contributed to a low cost of living, with rental and home prices that are significantly lower than the national average. Grimes emphasized that a typical family earning $50,000 can afford all basic needs (housing, vehicle, utility bills) and have money left over for savings or optional expenses. Per RentCafe data, the housing costs in Mississippi are 28% lower than the national average and the overall cost of living is 13% lower. Even the priciest city in Mississippi, which is Jackson, has a 9% lower cost of living than the national average.
3. Alabama
Cost-of-living index: 87.9
Median household income: $62,027
Average home price: $231,050
Alabama has seen population growth accelerate faster than many other states due to the combination of warm weather and lower costs, according to Forbes data. Grocery, transportation and healthcare costs are well below the national average. You can also find a home in Mobile for under $200,000, allowing your $50,000 salary to go further than most states.
4. West Virginia
Cost-of-living index: 88.1
Median household income: $57,917
Average home price: $171,253
West Virginia's affordable housing prices and rental market mean that an income of $50,000 can stretch farther than it would in coastal or large metro areas. Grimes pointed out that property taxes and utilities are relatively low, allowing many residents to save rather than live paycheck to paycheck. You can purchase a home in the state capital and largest city, Charleston, for around $160,000, which is well below the national average.
5. Kansas
Cost-of-living index: 88.9
Median household income: $72,369
Average home price: $237,658
According to Forbes, Kansas has lower poverty rates, better healthcare and a decent education system compared to the other states on this list, with one-third of adults holding a bachelor's degree or higher. It's worth noting that Kansas City extends into Missouri, which is the next-cheapest state to live in. If you're looking to relocate to stretch your salary, you can save money on housing since the average house price in Kansas City is under $200,000, as reported by Zillow.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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