What Is the Average Cost of Living in Mississippi in 2025?

Considering a move to Mississippi? With its diverse economy and vibrant regions like Jackson, Tupelo, and Gulfport, the state offers an appealing mix of Southern charm and affordability. In 2025, Mississippi’s average cost of living index stands at 87.3, about 12.7% lower than the national average.

This makes Mississippi the second-most affordable state in the US, just behind Oklahoma. Housing, utilities, groceries, and transportation all contribute to the average cost of living in Mississippi. Let’s take a closer look at what to expect when planning your move or budgeting for life in the state.

Understanding Mississippi’s Average Cost of Living

The average cost of living in Mississippi lets residents maintain a comfortable lifestyle at a fraction of the expense found in many other states. A single adult typically needs about $52,000 annually, while a family of four should budget near $80,523.

Key monthly expenses include:

• Housing (Rent): Around $991 for a two-bedroom apartment, which is lower than in Alabama ($1,046) and Tennessee ($1,110).
• Utilities: Roughly $370 per month, including electricity, natural gas, internet, and water.
• Groceries: About $335 per person monthly, which sits 3–4% below the national average. Tupelo and Meridian are especially affordable cities for groceries.
• Transportation: Fuel costs average $3.05 per gallon, about 6% below the US average, making daily commuting affordable.
• Healthcare: Annual costs average $7,645 per person, slightly above some states but still regionally competitive.

In addition, these expenses can vary by region, with metro areas like Jackson commanding slightly higher costs than rural towns.

Housing and Rental Market in Mississippi

Mississippi’s housing market continues to provide strong affordability for residents. In fact, it is a major reason the average cost of living in Mississippi remains low compared to national and regional averages.

• Median Home Price: $191,607, nearly half the national average of $368,581.
• Median Rent for a 2-Bedroom Apartment: $991, the lowest among nearby states.

When compared regionally:

1. Mississippi’s home prices are 27% lower than Tennessee’s $244,000 median.
2. Rents are 5.6% cheaper than Alabama’s median.
3. The housing affordability index in Mississippi is 66, well below most peers.

Metro areas like Jackson, Gulfport, and Tupelo offer a variety of housing options that remain affordable yet attractive due to economic activity and amenities.

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Utilities and Other Living Expenses in Mississippi

Utility bills in Mississippi are lower than the national average, partly due to affordable electricity prices.

• Average monthly utility bill: $370
• Electricity average: $153
• Natural gas: $63
• Cable & internet: $115

Compared to neighboring states:

• Mississippi’s utility index sits at 88.9.
• Alabama’s is 99.6.
• Louisiana’s is lower at 80.9, but Mississippi’s costs remain favorable overall.

In addition to utilities, groceries in Mississippi cost around $4,022 annually per person, about 3%–4% below the national average. Meanwhile, transportation remains very affordable due to low gas prices and limited public transit dependency.

Healthcare spending is slightly higher than some peers, but it does not dramatically increase living expenses.

Income and Job Market Overview in Mississippi

The average salary in Mississippi stands at about $56,000 per household. Although lower than the national median, the lower average cost of living in Mississippi provides residents with greater real purchasing power.

• Single adults usually need about $52,000 yearly for a middle-class lifestyle.
• Families of four require around $80,523 annually.

In addition, Mississippi keeps taxes moderate, which helps improve take-home pay.

Is It Worth It to Live in Mississippi?

Yes, it is. The average cost of living in Mississippi makes it attractive for many, especially those prioritizing housing affordability and low daily expenses.

However, some challenges exist, including limited high-paying job opportunities and higher healthcare needs. Still, affordable housing, low utilities, and a moderate grocery basket make Mississippi a state where your money goes further.

Regional Insights

When planning a move to Mississippi, consider the unique advantages of each region:

• Jackson: Ideal for job opportunities, cultural attractions, and urban amenities.
• Tupelo and Meridian: Known for affordable housing, lower grocery costs, and family-friendly communities.
• Rural Areas (e.g., Greenwood): Offer the lowest overall living costs but come with fewer employment options.

The Average Cost of Living in Mississippi in Context

In sum, Mississippi holds its place as the most affordable state in the US in 2025. The average cost of living in Mississippi is about 12.7% below the national average. Housing, utilities, and groceries drive much of this advantage.

With median home prices nearly 50% lower than the US average, low tax rates, and manageable living expenses, the state offers strong value. This makes Mississippi a top choice for families, retirees, and businesses alike.

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FAQs About Mississippi’s Average Cost of Living