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10 U.S. States With the Lowest Cost of Living

The skyline of Indianapolis, Ind.
The skyline of Indianapolis, Ind.
Jeremy Woodhouse/Getty Images

The Hoosier state has much to offer: Lake Michigan in the north, rolling hills along the Ohio River in the South, and lakes, woods and rich farmland in between. The northwest corner of the state has easy access to Chicago, and areas in the southeast are close to Cincinnati, Ohio, and Louisville, Ky.

Right in the center of the state, the capital, Indianapolis, offers the Indy 500 auto race and Indianapolis Colts pro football team, among other attractions. All this with an affordable cost of living: The median asking price of homes in late 2011 was $102,900, while the median household income was $57,500.

South Bend is noted as the home of the University of Notre Dame, with lots of intellectual and athletic offerings. Median home prices are a low $75,000. The median household income is also relatively low, at $46,800, but your dollars can go a long way, even in such a renowned college town.

The Wabash River cuts through the state, offering plenty of camping, boating and fishing opportunities as well as feeding a lush valley. On the banks of the Wabash, Terre Haute is another city where the low cost of housing and other necessities of life can stretch your wages.