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.

Joliet, IL

• Estimated income-to-expense ratio: 1.24
• Cost-of-living estimate: $68,662
• Median household income: $84,971
• Index: 94.1

Joliet, Illinois, is the most affordable city in the midwest and fifth-most affordable in the country. Situated 35 miles from Chicago, the cost of living in Joliet is 6% below the national average while households earn 14% more than the national median. 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. Pierre, SD

• Estimated income-to-expense ratio: 1.192
• Cost-of-living estimate: $67,494
• Median household income: $80,473
• Index: 92.5

Pierre, the capital of South Dakota, is the second-most affordable city in the midwest and eight-most affordable nationwide. The cost of living in Pierre is 7% below the national average and the median household income is a few thousand dollars above the national median.

Pierre is a small city with a population of just 14,000. It's relatively isolated as well. No interstate highway passes through Pierre and only one commercial airline flies out of its regional airport.

3. Minot, ND

• Estimated income-to-expense ratio: 1.15
• Cost-of-living estimate: $65,889
• Median household income: $75,545
• Index: 90.3

Minot, North Dakota, is among the most affordable cities in the midwest and is the 10th most affordable overall. It has a median household income that's about level with the national median and a cost of living roughly 10% 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 26% below the national average, according to the Council for Economic and Community Research.

4. Minneapolis, MN

• Estimated income-to-expense ratio: 1.12
• Cost-of-living estimate: $68,078
• Median household income: $76,332
• Index: 93.3

Minneapolis is the largest city among the most affordable places to live in the midwest. Despite over 400,000 people living in Minneapolis, the cost of living is 7% 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.

5. Bismarck, ND

• Estimated income-to-expense ratio: 1.11
• Cost-of-living estimate: $68,297
• Median household income: $76,014
• Index: 93.6

Bismarck, the capital of North Dakota, has a below-average cost of living and household income in line with the national median, like many other of the most affordable cities in the midwest. Housing in Bismarck is particularly affordable, 15% 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. Milwaukee, WI

• Estimated income-to-expense ratio: 1.06
• Cost-of-living estimate: $73,113
• Median household income: $77,558
• Index: 100.2

Milwaukee is the sixth-most affordable city in the midwest, with an average cost of living and median household income slightly higher than the national median. The largest city in Wisconsin and its capital, Milwaukee has a diverse economy and something to offer for people from all walks of life.

Multiple Fortune 500 companies are headquartered in Milwaukee, including Harley-Davidson and Northwestern Mutual. The city also has a long history of beer brewing, which remains an important part of its local economy and culture. In addition to museums, theaters, and professional sports teams, Milwaukee residents also have access to everything Lake Michigan has to offer.

7. Omaha, NE

• Estimated income-to-expense ratio: 1.05
• Cost-of-living estimate: $67,057
• Median household income: $70,202
• Index: 91.9

Omaha, Nebraska, is affordable thanks to its below-average cost of living and median household income close to the national median. Omaha is a city known for its business prowess. Berkshire Hathaway, led by the Oracle of Omaha Warren Buffett, and Union Pacific Railroad are headquartered in the city, among other Fortune 500 companies.

A mid-size city, Omaha has museums, theaters, and a historic market district. The city boasts a large park system and the nearby Missouri River provides opportunities for recreation.

8. St. Paul, MN

• Estimated income-to-expense ratio: 1.03
• Cost-of-living estimate: $67,786
• Median household income: $69,919
• Index: 92.9

The cost of living in St. Paul, Minnesota's, capital, is 7% below the national average. That makes it among the most affordable cities in the midwest, despite the median household income of its residents being slightly below the national median.

The cost of housing in Minnesota is nearly 20% lower than the national average, a reflection of policies the government has adopted to prevent housing from becoming unaffordable.

St. Paul has a number of parks, museums, and historic neighborhoods. It sits on the Mississippi River, which provides residents with plenty of recreational opportunities.

9. Madison, WI

• Estimated income-to-expense ratio: 1.00
• Cost-of-living estimate: $75,083
• Median household income: $74,895
• Index: 102.9

Madison, Wisconsin, offers a nearly average cost of living and median household income around the national median. The city is home to the University of Wisconsin-Madison, which keeps the median age of residents on the lower side, around 32.

The fastest growing city in the state, Madison has a diverse economy fueled by companies in information technology, healthcare, and agriculture.

Madison has over 6,000 acres of green space and has won awards for its bike-friendly infrastructure.

10. Des Moines, IA

• Estimated income-to-expense ratio: 1.00
• Cost-of-living estimate: $62,679
• Median household income: $62,378
• Index: 85.9

The 10th-most affordable city in the midwest is Des Moines, Iowa. The city has the lowest cost-of-living among the 10 most affordable cities in the midwest, but comes in at the bottom of the list due to the median household income being 16% below the national median.

The capital of Iowa, Des Moines is an insurance industry hub and home to most of Iowa's largest museums and performing arts centers.

Des Moines also boasts an extensive trail network and the beautiful Principle Riverwalk, a path along the Des Moines River which spans the city's downtown

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 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. This is based on the median household income in each city relative to the cost of living there.

Cheapest cities in the midwest U.S.

Most expensive cities in the midwest U.S.

Sources

• Bureau of Labor Statistics (2023). "Consumer Expenditure Survey".
• Census Bureau (2023). "American Community Survey."
• Council for Community and Economic Research (2024). "2024 Q1 Annual Average Cost of Living Index Report."