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

If you're looking for an inexpensive place to live, you shouldn't have any trouble finding one in the Midwest. This region has quite a few cities with low costs of living. Housing, in particular, tends to be much cheaper than the national average here.

Cost of living is only one factor, though, as a city's typical wages are also an important factor. On this list, we'll go over the top 10 most affordable cities in the Midwest.

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 Midwest United States

1. Joliet, IL

• Estimated income-to-expense ratio: 1.25
• Cost-of-living estimate: $68,881
• Median household income: $86,054
• Cost-of-living index: 94.4

Joliet, Illinois is the most affordable city in the Midwest in the country. Situated 35 miles from Chicago, the cost of living in Joliet is 6% below the national average while households earn 5% more than the national median income. Housing in Joliet is particularly affordable -- 20% below the national average, according to The Council for Economic and Community Research.

A former steel town, Joliet is now mostly a launch pad for commuters that work in Chicago. Its proximity to all that Chicago has to offer while being much more affordable is a major draw of Joliet.

2. Kansas City, MO-KS

• Estimated income-to-expense ratio: 1.23
• Cost-of-living estimate: $66,473
• Median household income: $81,927
• Cost-of-living index: 91.1

The second-most affordable city in the Midwest is Kansas City, which boasts a cost-of-living index score nine points below the national average. Housing, transportation, healthcare, and miscellaneous goods and services are all roughly 10 points below their respective national benchmarks, based on data from the Council for Economic and Community Research.

Kansas City has seen its population grow more quickly in recent years, but has managed to maintain affordability. The city has a strong and diverse economy alongside historic cultural attractions, including the National World War I Museum and Memorial.

3. Indianapolis, IN

• Estimated income-to-expense ratio: 1.19
• Cost-of-living estimate: $64,795
• Median household income: $77,065
• Cost-of-living index: 88.8

The third-most affordable city in the Midwest is Indianapolis. The capital of Indiana has below-average costs across all categories, but housing and healthcare stand out as particularly cheap, according to the Council for Economic and Community Research.

Indianapolis boasts a diverse economy anchored by three Fortune 500 companies with significant presence: Eli Lilly, Elevance Health, and Corteva. Culturally, the city is perhaps best known for the Indianapolis 500. The auto race shouldn't overshadow its range of museums and growing list of acclaimed restaurants.

Those facets, combined with a relatively low cost of living and median income nearly in line with the national median, make it an attractive city.

4. Minot, ND

• Estimated income-to-expense ratio: 1.19
• Cost-of-living estimate: $65,160
• Median household income: $77,431
• Cost-of-living index: 89.3

Minot, North Dakota, is among the most affordable cities in the Midwest. It has a median household income that's almost level with the national median and a cost of living 11% below the national average.

The Minot Air Force base 15 miles to the city's north is a major employer and local economic engine. There's also growing investment in oil fracking around Minot in the Bakken Formation and Three Forks Group.

Relatively cheap housing is a big draw to Minot. The cost of housing there is 27% below the national average, according to the Council for Economic and Community Research.

5. Bismarck, ND

• Estimated income-to-expense ratio: 1.14
• Cost-of-living estimate: $66,327
• Median household income: $75,846
• Cost-of-living index: 90.9

Bismarck, the capital of North Dakota, has a below-average cost of living and household income 7% below the national median, like many other of the most affordable cities in the Midwest. Housing in Bismarck is particularly affordable, 13% below the national average, according to the Council for Economic and Community Research. That's likely helped by the fact that only 74,000 people live there.

The largest employers in Bismarck are in retail, healthcare, and state government. The city has thousands of acres of green space with parks, hiking, and biking trails, making it an interesting option for those looking for a smaller, calmer lifestyle with access to amenities and the outdoors.

6. Minneapolis, MN

• Estimated income-to-expense ratio: 1.12
• Cost-of-living estimate: $72,334
• Median household income: $81,001
• Cost-of-living index: 93.6

Minneapolis is among the largest cities most affordable to live in the Midwest. Despite over 400,000 people living in Minneapolis, the cost of living is 6% below the national average. Household income is in line with the national median.

Minneapolis is a prime destination for those looking for affordability and city life. The city has a variety of museums, theaters, professional sports teams, and green space. It's also close to multiple lakes, which provide opportunities for water recreation and weekend getaways.

There's plenty of upside for professionals in Minnesota. Big companies like Target, U.S. Bancorp, and Xcel Energy are headquartered in the city.

7. Sioux Falls, SD

• Estimated income-to-expense ratio: 1.07
• Cost-of-living estimate: $66,400
• Median household income: $70,925
• Cost-of-living index: 91.0

South Dakota's largest city, Sioux Falls, is the seventh-most affordable in the Midwest, buoyed by the cost of living there being 9% below the national benchmark. Costs are low across all major categories with housing, transportation, and healthcare costs being particularly low. The median household income is in line with the national median.

Healthcare, meatpacking, and financial services are major industries in Sioux Falls. A collection of sculptures and indigenous art anchor the city's cultural attractions.

8. Pierre, SD

• Estimated income-to-expense ratio: 1.06
• Cost-of-living estimate: $69,861
• Median household income: $74,053
• Cost-of-living index: 90.4

The capital of South Dakota, Pierre is the eighth-most affordable city in the Midwest. Its cost-of-living composite score is 10% below the national average, although the median household income is 13% below the national median. The cost of utilities in Pierre are 20% below the national average.

Sitting on the banks of the Missouri River, Pierre's largest industries are the state government, agriculture, tourism, and healthcare. The Missouri River provides access to outdoor recreation while historical attractions support culture in and around the city.

9. Davenport-Moline-Rock Island, IA-IL

• Estimated income-to-expense ratio: 1.03
• Cost-of-living estimate: $69,629
• Median household income: $71,925
• Cost-of-living index: 90.1

Davenport, Moline, and Rock Island form the Tri-Cities, which have subsequently expanded to the Quad Cities, and now a collection of five cities with Bettendor and East Moline, split by the Mississippi River. Collectively grouped, it is the ninth-most affordable city in the Midwest.

Manufacturing, including defense manufacturing, agriculture, and healthcare are the Quad Cities' major industries. John Deere has a significant presence there. The Rock Island Armory is another major employer. The armory is the only active U.S. Army foundry and produces a range of significant military equipment.

10. Rapid City, SD

• Estimated income-to-expense ratio: 1.02
• Cost-of-living estimate: $68,516
• Median household income: $70,094
• Cost-of-living index: 93.9

The gateway to Mt. Rushmore and the Black Hills, Rapid City, South Dakota is the tenth-most affordable city in the Midwest. Its cost of living is 6% below the national average and the median household income in the city is 12% below the national median.

The city's economy is supported by its proximity to Ellsworth Airforce Base and Camp Rapid, an Army National Guard base. Black Hills Ammunition and Portland Cement provide manufacturing jobs. The city's close distance to Mt. Rushmore makes tourism a significant part of its economy and culture.

Cheapest and most expensive cities in the Midwest 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 Midwest U.S. to live in based on data from 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 Midwest U.S.

Most expensive cities in the Midwest 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

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