The 10 Most Affordable Cities With High Salaries and Low Cost of Living in the South

When it comes to the most affordable places to live in the U.S., the South can't be beat. Out of the 10 best bargains we found in the country, seven are located in the South. More than any other region, it offers the ideal blend of high wages and a low cost of living.

So, what are the 10 most affordable cities in the South? Keep reading to see the full list and learn more about them.

A note on methodology:

• The estimated cost of living in each city is calculated by multiplying the city's cost-of-living index score by the median annual household expenditure across the United States. This number is an estimate of median expenditures per household in the city.
• The estimated income-to-expense ratio is calculated by dividing the median household income in the city by the cost-of-living-estimate for the city. A higher estimated income-to-expense ratio score means the city is more affordable as the median household income there is above the cost-of-living estimate.
• Cities with a cost-of-living value 10% or more over the national average are excluded from consideration.

The 10 most affordable places to live in the Southern United States

1. McKinney, TX

• Estimated income-to-expense ratio: 1.55
• Cost-of-living estimate: $75,348
• Median household income: $116,654
• Cost-of-living index: 97.5

McKinney, Texas, is the most affordable city in the South and most affordable city in the U.S. The Dallas-Fort Worth suburb has a below average cost of living and a median household income well above the national median.

McKinney is among the fastest growing cities in the country. Its population in 2022 was 196,000, a 3.6% increase from 2021. Despite its fast growth, the cost of housing in McKinney remains a few points below the national average, according to the Council for Community and Economic Research.

2. Edmond, OK

• Estimated income-to-expense ratio: 1.42
• Cost-of-living estimate: $69,243
• Median household income: $98,542
• Cost-of-living index: 89.6

Located just north of Oklahoma City, Edmond is the second-most affordable city in the South and overall. The cost of living in Edmond is about 10% below the national average, while the median household income is 21% above the national median.

Edmond's affordability and close proximity to Oklahoma City is its major draw.

3. Midland, TX

• Estimated income-to-expense ratio: 1.29
• Cost-of-living estimate: $70,340
• Median household income: $90,699
• Cost-of-living index: 96.4

The third-most affordable city in the South, Midland is located in the oil-rich Permian Basin in West Texas. The city is affordable, with a below-average cost of living and incomes well above the national median. But it's a long drive from any large or mid-size city.

The oil industry dominates employment in Midland and also provides the highest salaries on average in the city. The city's population stood at 132,000 in 2022 and the median age that year was 31.4. Both population and incomes grew by less than 3% in 2021.

4. Austin, TX

• Estimated income-to-expense ratio: 1.29
• Cost-of-living estimate: $70,997
• Median household income: $91,501
• Cost-of-living index: 97.3

Austin has seen explosive growth in recent years, but the cost of living in the city is still a couple percentage points below the national average. That combined with a median household income that's 12% than the national median makes Austin one of the most affordable cities in the South and entire country.

Austin is a tech hub, with major software and hardware companies locating offices in the city. It's also home to the University of Texas at Austin, which is among the largest public colleges in the U.S.

It has a fantastic live music scene, notable barbecue and Tex-Mex, lots of parks and lakes, and plenty of places to go either at night or during the day. Residents take the local motto, "Keep Austin Weird," seriously.

5. Plano, TX

• Estimated income-to-expense ratio: 1.28
• Cost-of-living estimate: $84,931
• Median household income: $108,594
• Cost-of-living index: 109.9

The fifth-most affordable city in the South and seventh-most affordable in the United States is Plano, Texas. Its overall cost-of-living index score is just below the cutoff for our methodology, at 109.9, but its high median household income makes up for how expensive it is to live in the city.

A 30-minute drive north of Dallas, Plano is fast-growing and boasts a strong economy. Toyota Motor North America has its headquarters in Plano, and other large companies have significant footprints there including JPMorgan, JCPenney, and Frito-Lay.

6. Atlanta, GA

• Estimated income-to-expense ratio: 1.23
• Cost-of-living estimate: $70,048
• Median household income: $85,880
• Cost-of-living index: 96.0

Atlanta is the sixth-most affordable city in the South and tenth-most affordable city in the United States. Relatively cheap housing is enough to push Atlanta's cost-of-living index down, and the median household income in the city being 5% above the national median puts the city into the top 10 most affordable nationwide.

The city is a desirable destination thanks to its robust economy and multi-faceted cultural scene. Numerous large corporations are headquartered in Georgia, perhaps most famously Coca-Cola, Delta Air Lines, and Chick-Fil-A.

7. Charleston, SC

• Estimated income-to-expense ratio: 1.21
• Cost-of-living estimate: $78,748
• Median household income: $95,126
• Cost-of-living index: 101.9

The largest city in South Carolina, Charleston has a cost of living just over the national average, while the median household income there is 12% higher than the national median, leading it to be among the most affordable cities in the South. The city is home to 150,000 people and the median age there is 36.

Charleston is rich with history and parts of the city could be pulled from the colonial era. Its historically significant performing arts and music scene makes up a significant part of the city's culture today. The port and proximity to the beach offers plenty of opportunities for recreation.

8. Hilton Head Island, SC

• Estimated income-to-expense ratio: 1.20
• Cost-of-living estimate: $80,448
• Median household income: $96,715
• Cost-of-living index: 104.1

Hilton Head Island, South Carolina, may be one of the most attractive places for retirees, thanks to its relative affordability. The cost of living there is just 4% above the national average, while the median household income is 19% more than the national median.

Older Americans have made Hilton Head home. The median age in the city is 60. But it's an hour-long drive from Savannah, Georgia, the closest major city, which could be a challenge for retirees or those who want to take advantage of the relatively affordable cost of living in Hilton Head but can't work remotely.

9. Conroe, TX

• Estimated income-to-expense ratio: 1.17
• Cost-of-living estimate: $65,670
• Median household income: $77,027
• Cost-of-living index: 90.0

Conroe sits 40 miles north of Houston and boasts a lower cost of living and a median household income nearly in line with the national benchmark, making it one of the more affordable cities in the South.

While still within commuting distance to all that Houston offers, Conroe has a few attractions of its own. The city's northwest border abuts Lake Conroe, which provides plenty of choices for water recreation. Conroe also has a number of parks and other green spaces, as well as historic sites.

10. Raleigh, NC

• Estimated income-to-expense ratio: 1.15
• Cost-of-living estimate: $75,116
• Median household income: $86,309
• Cost-of-living index: 97.2

Raleigh, the capital of North Carolina, is the 10th-most affordable city in the South thanks to a slightly below average cost of living and slightly above average median household income. The city is growing quickly, but the cost of housing is still around 8% below the national average, according to data from the Council for Community and Economic Research.

The city is part of the Research Triangle along with Durham and Chapel Hill. Its economy is diverse with fast growing tech and biotech industries. North Carolina State University is located in Raleigh, which gives sports fans plenty to cheer for. Raleigh also has a number of parks and other green spaces for hiking and biking.

Cheapest and most expensive cities in the Southern United States

According to cost-of-living data from the Council for Community and Economic Research, these are the 10 cheapest and most expensive cities in the Southern U.S. to live in based on data from the first quarter of 2024.

A cost-of-living index of 100 represents the nationwide average, with a lower score meaning the cost of living in that city is lower.

These lists are based only on the cost-of-living index, not overall affordability. Affordability is based on the median household income in each city relative to the cost of living there.

Cheapest places to live in the Southern U.S.

Most expensive cities in the Southern U.S.

Moving to a new city? Here are some resources.

• Best mortgage lenders
• Mortgage calculator
• State-specific mortgage calculators and information
• Best car insurance companies

Other most affordable places to live

• The 10 Most Affordable Cities With High Salaries and Low Cost of Living
• The 10 Most Affordable Cities With High Salaries and Low Cost of Living in the Northeast
• The 10 Most Affordable Cities With High Salaries and Low Cost of Living in the Midwest
• The 10 Most Affordable Cities With High Salaries and Low Cost of Living in the West