What Is the Cost of Living in Mississippi?

Cost of living refers to the money required to cover basic expenses like housing, food, transportation, and healthcare to maintain a certain standard of living. Understanding these expenses is important for individuals or families considering relocation or evaluating their financial well-being, aiding in budgeting and informed decisions about where to live and work.

Overall Affordability in Mississippi

Mississippi has one of the lowest costs of living in the United States. The state’s overall cost of living index typically falls well below the national average. Recent data indicates Mississippi’s index can be as low as 83.3, meaning expenses are about 16.7% less than the national benchmark. This affordability makes it an appealing option for those seeking to maximize their purchasing power.

Breakdown of Key Household Expenses

Housing costs in Mississippi are lower than the national average. The average rent for a one-bedroom apartment ranges from $936 to $988 per month, and a two-bedroom apartment typically falls between $1,109 and $1,142. The median home price is around $195,000 to $260,600, below the national median.

Average monthly utility costs for a single person are around $412. This figure encompasses electricity, natural gas, water, internet, and trash services. Utilities in Mississippi are generally 11% lower than the national average.

Grocery and food costs in Mississippi are below the national average. An individual’s average monthly grocery bill is around $351.70. A household of two adults spends $600 to $700. Dining out at a mid-range restaurant for two people costs between $40 and $60 for a three-course meal.

Transportation expenses include the cost of fuel and vehicle insurance. Gasoline prices in Mississippi are often the lowest in the nation, around $2.69 to $2.72 per gallon. Car insurance premiums for full coverage typically range from $1,664 to $2,320 annually. Residents primarily rely on personal vehicles, as extensive public transportation is limited outside of major urban centers.

Average health insurance premiums for individual plans can range from $485 to $533 per month for a benchmark or silver plan. Out-of-pocket expenses for typical doctor visits or prescription medications are lower than the national average, with healthcare services being 8% lower overall.

Factors Affecting Costs

The cost of living in Mississippi varies by geographic location. Urban areas, such as Jackson or Gulfport, typically have higher housing costs and slightly elevated prices for goods and services due to increased demand and population density. Rural regions, conversely, present lower costs, particularly for real estate and local services.

The state’s economic landscape and average wage levels influence overall costs. Mississippi’s average income levels are lower than the national average, which affects local pricing for goods and services. Prices align with the local population’s purchasing power.

Taxation contributes to the overall cost of living. Mississippi has a state sales tax rate of 7%, applying to most goods and some services. Property tax rates are among the lowest in the nation, with an average effective rate below 0.79% of a home’s assessed value. The state also imposes a progressive income tax, with rates from 0% on the first $10,000 of taxable income and 4.7% on income exceeding $10,000 for tax year 2024.

Demand and supply dynamics affect pricing. Areas with growing populations and limited housing inventory, such as suburban communities near larger cities, may experience faster-rising home prices and rents. Conversely, regions with stable or declining populations and ample supply maintain lower, more stable costs.