What Is the Average Cost of Living in Mississippi?

The cost of living is the amount of money an individual or family needs to maintain a certain standard of living in a particular area. It encompasses various expenses, helping assess a location’s affordability by comparing average costs to income levels. This article explores the average cost of living in Mississippi, detailing its key components and influencing factors.

Key Components of Cost of Living

Housing expenses form a substantial part of the cost of living in Mississippi. The average rent for a one-bedroom apartment is projected to be around $720 in 2025. The median home price in Mississippi was approximately $249,700 in January 2025, which is lower than the national median. In August 2025, the overall average rent across all property types in Mississippi is $988 per month, with studio apartments averaging $940 and two-bedroom units around $1,142 monthly.

Utility costs in Mississippi are lower than the national average, contributing to the state’s affordability. Residents spend about $584 per month on essential services like electricity, water, gas, and internet. Electricity bills average around $147 per month, while water bills are $23 monthly. Natural gas costs about $63 per month, and internet plans range around $115 monthly for high-speed access.

Food and grocery expenses in Mississippi are moderate, with monthly grocery expenses per person totaling around $290.64, which is slightly below the national average. A single resident spends roughly $331.09 per month on food. Dining out is also economical, with casual meals costing about $12 and mid-range restaurant meals approximately $40. For a family of four, monthly food costs can reach about $973.

Transportation costs in Mississippi are among the lowest nationally. Public transit fares are affordable, with a one-way ticket costing $1.50 and a monthly pass priced at $50. Fuel prices in Mississippi are lower than the national average, with regular gasoline averaging around $2.66 per gallon as of August 2025. The average annual cost for full coverage car insurance is about $1,870, while minimum coverage averages $661 per year.

Healthcare expenses in Mississippi are more affordable than the national average. Employer-sponsored health insurance premiums average about $122.33 monthly. For individual plans, silver health plans are available for $500 per month. The average cost for a doctor’s visit in the state is $110.

Miscellaneous expenses cover a range of common outlays. Monthly spending on clothing is $100, and personal care items cost $50 per month. Entertainment options include movie tickets at $10 each and gym memberships at $30 monthly.

Childcare costs vary, with infant care averaging $682 per month in 2025. For a four-year-old, childcare costs average $609 each month. Public schools are free for residents, though private school tuition averages $7,000 annually.

Cost of Living Across Mississippi

The average cost of living in Mississippi can vary considerably depending on the specific location within the state. Urban centers present higher expenses compared to more rural areas. For instance, Jackson offers starting rents as low as $600 a month, while Hattiesburg and Gulfport have starting rents around $750 monthly. In contrast, Madison can see starting rents as high as $1,700 per month.

These regional differences are particularly noticeable in housing prices. The median home price in the Jackson metro area was $219,100 in the first quarter of 2024. Similarly, the Gulfport-Biloxi-Pascagoula metro area had a median home price of $210,800 during the same period. This contrasts with the overall state median home price of approximately $249,700 in January 2025.

Childcare costs also reflect these geographical variations. While the state average for infant care is $682 per month, Jackson’s average starting cost for childcare providers is $1,958 monthly. Cities like Tupelo and Meridian have a lower cost of living compared to the state average. These localized differences emphasize considering specific city expenses when evaluating the overall cost of living.

Factors Influencing Cost of Living

Several broader economic and demographic factors influence Mississippi’s overall cost of living. The median household income in Mississippi is forecasted to be $56,000 in 2025. This income level plays a role in local pricing dynamics, as goods and services are often priced relative to the purchasing power of residents.

State and local taxes also contribute to the overall cost burden. Mississippi has a state sales tax rate of 7.00%. The state individual income tax rate is 4.7% on taxable income over $10,000, with the first $10,000 taxed at 0%. Property taxes in Mississippi are notably low, with an average effective property tax rate of 0.58% of estimated property value. The median annual property tax payment in the state is $1,145.

The job market and economic activity within Mississippi also affect pricing. A robust economy with job growth can lead to increased demand for goods and services, potentially influencing prices. Conversely, a less competitive job market might result in lower pricing due to reduced consumer spending power. Population density and growth further influence supply and demand dynamics, with more populous areas often experiencing higher costs for housing and services compared to less densely populated, rural regions.