Mississippi has the lowest cost of living in the United States, with median home prices under $180,000 and overall costs roughly 16% below the national average. But the financial reality is more nuanced than the headline: Mississippi also has the lowest median household income in the country (~$52,000), which limits savings potential even with cheap housing. The strongest financial outcomes tend to be in the Jackson metro, DeSoto County (a Memphis suburb with Mississippi costs and Tennessee-adjacent job access), and the Gulf Coast healthcare and defense sectors. For remote workers earning out-of-state salaries, Mississippi’s affordability is genuinely exceptional.
Mississippi at a Glance
| Metric | Value | National Rank |
|---|---|---|
| Population (2024) | 2.9 million | 34th |
| Median household income | $52,985 | Lowest in US |
| Median home price | $175,000 | Lowest in US |
| Cost of living index | 84 | Lowest/2nd lowest |
| State income tax | 0% on first $10K, then 4.7% | Below average |
| Sales tax | 7% | Above average |
| Property tax (effective rate) | 0.63% | Very low |
Income and Housing
| City/Area | Median Income | Median Home Price | Median Rent (2BR) |
|---|---|---|---|
| Jackson (metro) | $55,000 | $165,000 | $950 |
| DeSoto County (Memphis suburb) | $72,000 | $260,000 | $1,250 |
| Gulfport-Biloxi | $52,000 | $195,000 | $1,000 |
| Hattiesburg | $43,000 | $160,000 | $900 |
| Oxford (Ole Miss) | $47,000 | $250,000 | $1,100 |
| Tupelo | $48,000 | $175,000 | $900 |
| Columbus/Starkville | $42,000 | $155,000 | $850 |
Hidden Costs
Despite lowest COL, Mississippi has hidden financial costs:
- Health insurance: Higher premiums (limited marketplace competition)
- Auto insurance: Above-average rates
- Flood insurance: Needed in many areas, especially Gulf Coast
- Lower earnings: Lowest median income means less to save/invest
Mississippi Pros and Cons
| Financial Pros | Financial Cons |
|---|---|
| Cheapest or 2nd cheapest state to live | Lowest median income in US |
| Very low property taxes (0.63%) | Limited high-paying job market |
| Homes under $200K widely available | Higher healthcare costs per outcome |
| Income tax being phased down | High sales tax (7%) |
| Low property taxes | Natural disaster risk (hurricanes, flooding) |
Related: Cost of Living by State | State Income Tax Rates | Property Tax by State
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