Mississippi
has the lowest cost of living in the United States. On average, a single adult only needs about $32,500 annually to live comfortably.Easily available land, low salaries, widespread poverty, and sky-high crime rates all contribute to Mississippi's cheap cost of living. With an overall cost of living index (COLI) of 83.3, Mississippi is by far the most affordable state in America—provided you have a well-paying job.
But what does that cost of living index actually mean? And how much can you expect things to cost in the Magnolia State? Here to answer all those questions and more is Jerry
, the trusted insurance broker
designed to save you time and money on car and home insurance
. How high is the cost of living in Mississippi?
Mississippi has long been famous—or rather infamous—for its dysfunctional economy, low wages, extreme poverty, and rampant crime. Unfortunately, whatever dark rumors you’ve heard about The Magnolia State, there’s a good chance they’re true (at least to an extent).
On the upside, Mississippi’s long-standing troubles create an affordable economic landscape for those who already have money saved up and want to make a move.
As has been mentioned, the average cost of index (COLI) there is 83.3. Let’s break that down.
An area’s COLI is its average cost of living in relation to the national average. No matter what the nationwide average cost of living happens to be at a given time, it is represented as a COLI of 100.
All other COLIs are really just percentages of that average. So, a COLI of 83.3 means that the cost of living in Mississippi is 83.3% of the national average, or 16.7% cheaper.
To give you a more concrete sense of Mississippi’s cost of living, let’s put things in terms of real dollars. Below, you’ll find a breakdown of the cost of various expenses in the state.
Food: $250 to $780 per month
The number one expense on everyone’s list is food—it’s the most vital expense there is. In Mississippi, you’re looking at grocery expenses about 8% lower than the national average, according to MIT’s Living Wage Calculator
. A single adult can expect to pay around $250 per month on food. If you have a family, say a spouse and two children, that number jumps up to around $780-$800 a month.
Keep in mind that these figures are for groceries only. If you want to eat out, that’s going to cost quite a bit more.
Healthcare: $225 per month
Once you’ve taken care of your food, you’ll need to secure reliable medical care. The average person in Mississippi pays around $225 per month for healthcare, which comes out to about $2,700 a year.
Of course, this is a fairly unevenly distributed cost—some individuals will pay far more while others will pay less, depending on your preexisting conditions, prescriptions needed, and whether you qualify for government assistance.
Housing: $688 to $852 per month
Housing is the area where you’re really going to save a lot of money in Mississippi. The cost of living index for housing in Mississippi is 66.3, meaning it’s nearly 44% cheaper than the rest of the country!
Once again using MIT’s Cost of Living Calculator, we find that the average monthly housing expense for a single adult is $688. For those that have a family of four, that figure jumps to $852 per month.
But these averages include both rentals and mortgages—let’s see how those categories look separately.
According to the World Population Review
, the median home price in Mississippi, as of 2022, is $119,000 with a monthly mortgage payment of $750, which is almost shockingly low. Residents of The Magnolia State who rent their homes get very low rates as well. Using data published by RentData.org
, we can see what renters are paying per month in 2022: Average studio rent: $576
Average one-bedroom rent: $619
Average two-bedroom rent: $705
Average three-bedroom rent: $941
Average four-bedroom rent: $956
As with any area, the average statewide housing cost doesn’t necessarily reflect the price that you’ll find in any given town. Consider the overall average cost of rent in Mississippi across all dwelling sizes, which is $788 (as of 2022).
If you compare that with the average in some towns, such as Oxford
($973) or Pass Christian
($977), there’s a pretty big discrepancy. On the other hand, towns like Aberdeen
, with its average rent of $575, work to even out the curve. Transportation: $426 to $1,158 per month
Another area where Mississippi residents save money is the cost of transportation.
Referring back to the MIT Cost Of Living Calculator, we find that single adults in The Magnolia State pay an average of $5,113 annually ($426 per month) in transportation-related expenses. If you have a family of four, the average becomes $13,896 annually ($1,158 per month).
Mississippi is a largely rural region. Even its cities tend to have a wide-open layout. This being the case, residents end up driving quite a bit. Just to get to work, they communicate an average of 24 minutes a day. Fortunately, low gas prices keep travel costs from getting too high.
But transportation expenses don’t just include the cost of gas—there are several contributing factors. Here are the big-ticket items:
Average cost of a gallon of gas, August 2022: $3.54
How much you need to live comfortably in Mississippi: $19,068 to $74,201 per year
Just to cover the basic necessities listed above, a single adult in Mississippi will need at least $19,068 per year after taxes—which would mean you’d need to be making at least $23,500 before taxes or $12.25/hour.
When you compare that to the state’s low minimum wage of $7.25/hour, it’s no wonder that almost 20% of Mississippi residents live below the poverty line—and those are just the expenses you’ll need to cover in order to meet the bare necessities.
There’s quite a big difference between surviving and living comfortably. For comfort, you’d need a living wage, which is defined by MIT’s Cost of Living Calculator as $32,572 annually ($17/hour) for a single adult. For a family of four, an annual income of $74,201 ($38/hour) is required to make a living wage.
With those incomes, you’d be able to pay for your basic needs as well as afford occasional “non-essential” expenses, such as the following:
Average cost of a date: $56.40 (US average: $116)
Average cost of a night at the movies: $7.50 (US average: $10.61)
Average cost of a Big Mac: $3.91 (US average: $3.99)
Average sales tax: 7.00%(US average: 5.09%)
Obviously, how much it costs to live comfortably in Mississippi will depend on the particular town you’re in and what your own personal definition of “comfortable” entails.
The Mississippi cities with the lowest cost of living
The cost of living in Mississippi may be low overall, but which cities are the most affordable? Below, you’ll find the most affordable cities in the most affordable state in the nation. Take a look:
Aberdeen
(COLI: 76): Situated on the shores of Weaver Creek Cutoff and surrounded by some of the most breathtaking natural splendor that The Magnolia State has to offer, Aberdeen is a tiny little spot where you can find some of the most affordable living in the U.S. Clarksdale
(COLI: 77): Located on the banks of the Sunflower River and just a stone's throw from the mighty Mississippi River, you’ll find Clarksdale—a charming little community that plays host to the famed Delta Blues Museum. Forest
(COLI: 77): Deep in the heart of Mississippi, about 50 miles outside of Jackson, there’s a tiny settlement of Mississippi locals known simply as Forest. Isolated and virtually empty, this would be a good place to settle down for someone looking to get away from the bustle of modern life. Ripley
(COLI: 78): Located at the intersection of Highways 45 and 4, Ripley is a small town with a lot to offer—from a sports complex to its very own public gardens. Philadelphia
(COLI: 80): It’s not hard to see why property in this town isn’t in high demand—it has a sinister past as the site of several brutal murders during the Civil Rights movement.
These may be the five most affordable places to live in Mississippi, but there are plenty more. Just be careful when choosing a potential new home based on prices alone, as violent crime and poverty go hand-in-hand.
How to easily find home and car insurance in Mississippi
Car insurance, like everything else in the Magnolia State, doesn’t have a high price tag. You’re not likely to be charged more than $150 a month—even for comprehensive coverage! The same is true for the cost of homeowners insurance in Mississippi.
As low as the cost of car insurance in Mississippi
is, you can always find better deals! After all, the only thing better than an incredibly low price is an even lower one! The best way to find the lowest possible prices for auto insurance and home insurance is by downloading the Jerry
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