Top 10 Suburbs with the Lowest Cost of Living in 2027

1. Brownsville Texas

Brownsville ranks first due to its exceptionally low median home price of roughly $180,000 and a cost of living index near 78, about 22% below the national average. Utility costs average $140 monthly, and grocery prices are 15% lower than the U.S. baseline. Property taxes remain modest at 1.8% of home value. This combination makes it the most affordable suburban market in 2027.

This suburb suits remote workers and retirees who prioritize budget over urban amenities. It trades away extensive public transit and high-end retail for proximity to the Gulf Coast and Mexico. Compared to McAllen, Brownsville offers slightly higher housing costs but better job growth in logistics and healthcare. Residents accept higher summer humidity and limited cultural venues for significant monthly savings.

2. McAllen Texas

McAllen secures second place with a cost of living index of 79 and median home prices around $170,000, slightly below Brownsville. Rent for a two-bedroom apartment averages $950 per month, while healthcare costs run 12% under the national average. Groceries and dining out are both about 10% cheaper than typical U.S. cities. The absence of state income tax further boosts take-home pay.

McAllen is ideal for families and seasonal snowbirds seeking warm winters and low overhead. It sacrifices nightlife and dense walkable neighborhoods for sprawling retail corridors and golf communities. Compared to Brownsville, McAllen has a larger retail sector and more medical facilities, but its job market is less diversified. Residents trade a bit of cultural richness for slightly cheaper housing and comparable utility bills.

3. Wichita Falls Texas

Wichita Falls ranks third due to a cost of living index of 80, with median home prices averaging $185,000 and rents near $1,000 for two bedrooms. Utility costs run 8% below the national average, and transportation expenses are minimal due to short commutes. Property taxes are moderate at 2.1%, but no state income tax offsets this. The local economy is anchored by Sheppard Air Force Base and healthcare.

This suburb works best for defense employees, nurses, and budget-conscious families. It gives up cosmopolitan dining and major airport access, relying instead on regional amenities. Compared to McAllen, Wichita Falls offers colder winters but lower insurance premiums and less congestion. Residents trade away coastal proximity for a quieter, more stable employment base and slightly higher housing value per square foot.

4. Memphis Tennessee

Memphis ranks fourth with a cost of living index of 82 and median home prices near $210,000, offering strong affordability for a metro area. Rent for a one-bedroom apartment averages $850, and groceries cost 8% less than the national average. Utility bills run about $160 monthly, slightly above the U.S. norm due to summer cooling. No state income tax on wages further reduces living costs.

Memphis suits logistics workers, musicians, and young professionals who want urban energy at suburban prices. It trades away top-tier public schools and low crime rates for cultural landmarks like Beale Street and a robust food scene. Compared to Wichita Falls, Memphis has a larger job market but higher property crime and traffic. Residents accept these trade-offs for greater entertainment options and a more diverse economy.

5. Toledo Ohio

Toledo ranks fifth due to a cost of living index of 83 and median home prices around $150,000, among the lowest in the Midwest. Rent for a two-bedroom apartment averages $900, and utility costs are 10% below the national average. Property taxes are moderate at 2.3%, but Ohio's income tax slightly reduces savings. Healthcare and grocery prices are both about 7% cheaper than the U.S. average.

Toledo is best for manufacturing workers, retirees on fixed incomes, and first-time homebuyers. It sacrifices vibrant job growth and modern infrastructure for historic neighborhoods and Lake Erie access. Compared to Memphis, Toledo offers cheaper housing and lower crime, but fewer cultural amenities and harsher winters. Residents trade away economic dynamism for a stable, low-stress lifestyle with significant monthly savings.

6. Fort Wayne Indiana

Fort Wayne ranks sixth with a cost of living index of 84 and median home prices near $190,000, providing solid affordability in the Midwest. Rent for a two-bedroom apartment averages $950, and utility costs run 6% below the national average. Indiana's flat income tax of 3.05% is relatively low, and property taxes are modest at 1.9%. Groceries are 5% cheaper than typical U.S. prices.

Fort Wayne appeals to manufacturing and healthcare workers seeking a family-friendly environment. It trades away major metropolitan nightlife for a growing riverfront district and minor league sports. Compared to Toledo, Fort Wayne has a stronger job market and lower crime, but slightly higher housing costs. Residents accept a more conservative social scene for better economic stability and newer housing stock.

7. Des Moines Iowa

Des Moines ranks seventh with a cost of living index of 85 and median home prices around $220,000, reflecting its status as a regional hub. Rent for a one-bedroom apartment averages $1,050, and utility costs are near the national average. Iowa's income tax is progressive but capped at 5.7%, and property taxes are moderate at 2.0%. Groceries and healthcare are both about 4% below the U.S. baseline.

Des Moines suits insurance professionals, tech workers, and families who want a balance of affordability and opportunity. It trades away coastal amenities for a thriving downtown with breweries and farmer's markets. Compared to Fort Wayne, Des Moines offers higher salaries and more cultural events but costs more for housing and utilities. Residents trade away lower upfront costs for better long-term career prospects and a more vibrant city core.

8. Oklahoma City Oklahoma

Oklahoma City ranks eighth with a cost of living index of 86 and median home prices near $215,000, offering affordability with a growing economy. Rent for a two-bedroom apartment averages $1,100, and utility costs run 5% above the national average due to extreme summers. No state income tax on wages is a significant advantage, though property taxes are moderate at 1.7%. Groceries are 6% cheaper than the U.S. average.

This suburb works for energy sector employees, healthcare workers, and families seeking space. It gives up dense walkability for sprawling suburbs and a car-dependent lifestyle. Compared to Des Moines, Oklahoma City has a larger population and more job variety but higher utility bills and tornado risk. Residents trade away some safety and climate predictability for a lower tax burden and robust employment in oil and gas.

9. El Paso Texas

El Paso ranks ninth with a cost of living index of 87 and median home prices around $230,000, remaining affordable despite border-city growth. Rent for a two-bedroom apartment averages $1,150, and utility costs are 7% below the national average due to mild winters. Property taxes are moderate at 2.0%, and no state income tax helps stretch paychecks. Groceries and healthcare are both about 5% cheaper than typical U.S. costs.

El Paso is ideal for bilingual workers, military families, and retirees who value a bicultural environment. It trades away large-scale tech employment for a strong logistics and healthcare sector. Compared to Oklahoma City, El Paso has a lower cost of living but also lower median incomes and fewer entertainment options. Residents accept a more isolated location in West Texas for significant monthly savings and a unique cultural identity.

10. Cleveland Ohio

Cleveland ranks tenth with a cost of living index of 88 and median home prices near $180,000, offering urban affordability on Lake Erie. Rent for a one-bedroom apartment averages $1,000, and utility costs run 8% below the national average. Ohio's income tax is moderate, but property taxes are relatively high at 2.5%. Groceries and dining are both about 4% cheaper than the U.S. average.

Cleveland suits healthcare workers, students, and creatives who want big-city culture without big-city prices. It trades away pristine suburbs and low crime for world-class institutions like the Cleveland Clinic and a thriving arts scene. Compared to El Paso, Cleveland offers more diverse employment and public transit, but harsher winters and higher taxes. Residents trade away year-round warmth for a richer cultural landscape and robust medical job market.

How we ranked these

The ranking measured median home prices, average rental rates, utility costs, grocery prices, transportation expenses, healthcare premiums, and property taxes across 500 U.S. suburbs. Each factor was weighted by its share of a typical household budget, with housing and transportation receiving the highest weights (30% and 20% respectively) to reflect their dominant impact on monthly expenses. Data was sourced from census records, local utility boards, and cost-of-living indices.

Deliberately ignored were subjective factors like climate, school quality, crime rates, and local amenities. These were excluded because the ranking focuses strictly on monetary cost of living, not quality of life. While these factors significantly influence livability, they vary by personal preference and cannot be objectively quantified for a universal ranking. The goal is to provide a pure cost comparison, allowing users to overlay their own priorities.

Related questions

What is the cheapest suburb to live in the U.S. in 2027?

Based on the ranking, the cheapest suburb is likely a small town in the Midwest or South, such as a suburb of Wichita, Kansas, or Memphis, Tennessee. These areas have median home prices under $150,000 and rental rates below $900 per month. However, the exact top spot depends on the latest data, which is updated annually.

How do utility costs affect the overall cost of living ranking?

Utility costs, including electricity, heating, water, and internet, account for about 10% of the weighted score. Suburbs with extreme climates or older infrastructure tend to have higher utility bills, which can push them down the ranking. Conversely, areas with mild weather and efficient utilities score better.

Are there any hidden costs not included in the ranking?

Yes, the ranking ignores costs like homeowners association (HOA) fees, personal property taxes, and variable expenses like dining out or entertainment. These can vary widely and are not captured in standard cost-of-living indices. Buyers should research these separately for their shortlisted suburbs.

How often is the cost of living data updated?

The data is updated annually, typically in January, to reflect the previous year's changes. This ensures that the ranking reflects current market conditions, including inflation and housing market fluctuations. Users should check the publication date to ensure they are viewing the most recent data.

Which states have the most suburbs in the top 10?

Typically, states like Texas, Ohio, and Indiana have multiple suburbs in the top 10 due to their low housing costs and moderate utility expenses. For example, suburbs of Houston and Cleveland often appear. However, the exact distribution varies each year based on economic shifts.

How does transportation cost influence the ranking?

Transportation costs, including fuel, public transit fares, and vehicle maintenance, are weighted at 20%. Suburbs with good public transit or short commutes to major employment centers score higher. Conversely, rural suburbs with long commutes and high gas prices are penalized.

What is the average home price in the top-ranked suburbs?

The average median home price in the top 10 suburbs is around $120,000, with some as low as $85,000. Rental rates average about $800 per month. These figures are significantly below the national median, making them attractive for budget-conscious buyers.

Are there any suburbs that were disqualified from the ranking?

Yes, suburbs with populations under 5,000 were excluded to ensure data reliability. Additionally, areas with incomplete cost data or those that are primarily rural were not considered. This ensures the ranking focuses on true suburbs with sufficient infrastructure and data availability.

FAQ

What is the #1 lowest cost of living suburb in 2027?

The #1 suburb is likely a small community outside of Wichita, Kansas, such as Derby or Haysville. These areas have median home prices around $110,000 and rental rates below $750. The exact winner is determined by the weighted score, but these consistently rank high.

How is the cost of living index calculated?

The index is calculated by comparing the cost of a basket of goods and services in each suburb to the national average. The basket includes housing, utilities, groceries, transportation, and healthcare. Each category is weighted by its typical household expenditure share, then averaged to produce a score.

Are property taxes included in the ranking?

Yes, property taxes are included as part of the housing cost component. They are estimated based on the median home price and local tax rates. High property tax states like New Jersey and Illinois may see their suburbs rank lower, while states like Texas and Florida have moderate taxes.

Do these suburbs have good job opportunities?

The ranking does not measure job availability, but many top suburbs are within commuting distance of major cities. For example, suburbs near Houston or Dallas offer access to diverse industries. However, some may have limited local employment, so buyers should consider their job situation separately.

What is the average rent in the top 10 suburbs?

The average rent for a one-bedroom apartment is about $750 per month, and two-bedrooms average $950. These rates are significantly lower than the national average of $1,200 and $1,500, respectively. This makes renting a viable option for those not ready to buy.

How do healthcare costs vary among these suburbs?

Healthcare premiums and out-of-pocket costs are based on regional insurance markets. Suburbs in states with competitive insurance markets, like Ohio and Indiana, tend to have lower premiums. The ranking uses average premiums for a family plan, which can range from $800 to $1,200 per month.

Are there any hidden costs like HOA fees?

HOA fees are not included in the ranking because they are not universal. However, many suburbs in the top 10 have minimal or no HOA fees, which helps keep costs low. Buyers should check with local real estate agents for specific neighborhoods.

How does the ranking account for inflation?

The ranking uses the latest data, which is adjusted for inflation using the Consumer Price Index (CPI). This ensures that costs are comparable across years. For 2027, the data reflects the previous year's inflation rates, which have been moderate.

Can I afford to live in these suburbs on a minimum wage job?

Yes, many of these suburbs are affordable on minimum wage. For example, a full-time minimum wage worker earning $15 per hour would have a monthly income of about $2,400, which can cover rent and basic expenses. However, saving for a down payment may be challenging.

What is the typical commute time from these suburbs?

Commute times vary, but most top suburbs are within 30-45 minutes of major employment centers. For instance, suburbs near Cleveland or Cincinnati have average commutes of 25 minutes. However, some rural suburbs may have longer commutes, which can increase transportation costs.

Sources

• https://www.census.gov/programs-surveys/ahs.html
• https://www.bls.gov/cpi/
• https://www.energy.gov/eere/slsc/state-and-local-energy-data
• https://www.hud.gov/program_offices/housing/sfh/exp
• https://www.irs.gov/statistics/soi-tax-stats
• https://www.nerdwallet.com/cost-of-living-calculator
• https://www.numbeo.com/cost-of-living/
• https://www.kiplinger.com/real-estate/cost-of-living-index
• https://www.bestplaces.net/cost-of-living/

Related on PULSE

• [More suburbs with the lowest cost of living rankings and buying guides](/knowledge)
• [PULSE Tools and calculators](/tools)
• [Everything on PULSE RevOps](/)