Mississippi is known for its Southern hospitality and picturesque landscapes, but it’s also a state where residents enjoy a lower cost of living. From affordable housing to reasonable prices for transportation and healthcare, the Magnolia State provides plenty of opportunities for a budget-friendly lifestyle. Whether you’re drawn to the historic cities like Jackson or the coastal charm of Gulfport, understanding the cost of living in Mississippi can help you plan for a comfortable and fulfilling life.
Housing costs: Median home prices and average rent in Mississippi
Mississippi offers some of the most affordable housing options in the nation, making it an good place to live for many. The median home sale price in Mississippi is $260,600, significantly below the national median of $428,000. Renters also benefit from lower costs, with the average rent in the state at $1,159 per month, compared to the national average of $1,645.
Housing costs vary depending on location. Madison, known for its schools, ranks among the most expensive cities, with home prices and rents reflecting its desirability. In contrast, Meridian and Greenville offer more budget-friendly options for renters and buyers, appealing to those looking for affordability without sacrificing Southern charm.
Mississippi housing costs: Average rents and median home sale prices
| City in Mississippi | 1 Bed Avg. Rent | 2 Bed Avg. Rent | Median Home Sale Price |
| National Average | $1,495 | $1,725 | $428,000 |
| Jackson | $1,100 | $1,295 | $121,000 |
| Gulfport | $973 | $1,127 | $195,000 |
| Biloxi | $1,142 | $1,323 | $263,000 |
| Hattiesburg | $922 | $1,099 | $145,000 |
| Tupelo | $1,100 | $1,245 | $300,000 |
| Meridian | $862 | $895 | $97,000 |
| Southaven | $1,317 | $1,455 | $305,000 |
| Vicksburg | $1,150 | $1,110 | $147,000 |
| Oxford | $950 | $1,100 | $585,000 |
| Starkville | $1,399 | $809 | $212,000 |
Housing costs in popular cities in Mississippi
Jackson
As the state capital, Jackson offers affordable housing in a city steeped in history and culture. The median home sale price is just $121,000, making it one of the most affordable options in Mississippi. Renters can find a one-bedroom apartment for $1,100 or a two-bedroom for $1,295 per month. Living in Jackson provides access to rich arts scenes, such as the Mississippi Museum of Art, and a mix of traditional and modern dining options.
Gulfport
Gulfport combines coastal living with affordability, offering a median home sale price of $195,000. Renters can expect to pay $973 for a one-bedroom apartment or $1,127 for a two-bedroom. As a coastal city, Gulfport is known for its beaches, seafood restaurants, and outdoor recreation opportunities like fishing and boating. Housing options often include beachside apartments and charming single-family homes, appealing to those who love a relaxed, seaside vibe.
Biloxi
Biloxi, another coastal gem, features a slightly higher cost of living but balances it with its vibrant atmosphere. The median home sale price is $263,000, while renters can find a one-bedroom for $1,142 and a two-bedroom for $1,323. Known for its casinos, historical landmarks, and waterfronts, renters here enjoy proximity to the Gulf of Mexico.
Hattiesburg
Hattiesburg blends small-town charm and urban convenience. The median home sale price is $145,000, and rent averages $922 for a one-bedroom or $1,099 for a two-bedroom. Known as “The Hub City,” Hattiesburg has a thriving arts scene, thanks to its local universities, and plenty of outdoor attractions like the Longleaf Trace trail.
Expect to pay less for utilities
Mississippi’s cost of utilities is lower than the national average. Residents typically spend around $584 per month on essential services such as electricity, water, gas, and internet. Electricity costs are a significant part of this expense, averaging $147 per month, thanks to the state’s hot and humid summers when air conditioning is a necessity.
Water bills in Mississippi are generally affordable, averaging around $23 per month, while natural gas, used for heating and cooking, typically costs $63 per month. Internet plans in the state vary by provider but generally cost between $115 per month for high-speed access.
Rural areas may experience higher utility bills due to fewer provider options and potentially less efficient infrastructure, while urban centers like Jackson and Gulfport offer more competitive pricing and reliable service. Overall, Mississippi’s relatively low utility costs contribute to its reputation as one of the most affordable states in the country.
Energy bill comparisons: Mississippi cities vs. nationwide average
| Monthly Energy Bill | Monthly Phone Bill | Comparison to National Avg. | |
| National Average | $203.40 | $194.11 | |
| Jackson | $152.15 | $189.32 | -16% less |
| Gulfport | $207.34 | $190.66 | -1% less |
| Biloxi | $207.34 | $190.66 | -1% less |
| Hattiesburg | $180.73 | $189.32 | -8% less |
| Tupelo | $153.75 | $189.70 | -16% less |
| Meridian | $184.65 | $189.32 | -7% less |
Data from Redfin’s Cost of Living Calculator, November 2024
Groceries cost 19% more than the average
While Mississippi offers affordability in many areas, the cost of groceries is notably higher than the national average, with residents spending about 19% more on food each month. This increase can be attributed to a combination of factors, including supply chain logistics and the availability of locally produced goods.
Despite the higher costs, local farmers’ markets across cities like Jackson and Gulfport offer fresh, seasonal options that many residents prefer. Grocery chains such as Kroger, Walmart, and local favorites like Corner Market provide a mix of options for those looking to balance quality and cost.
Lower than average cost of transportation
Transportation costs in Mississippi are generally lower than the national average, making it an appealing state for drivers. Gas prices currently average $2.60 per gallon, well below the national average of $3.05. However, residents in the Southeastern part of the state, particularly in cities like Biloxi and Gulfport, may experience slightly higher prices at the pump.
For those who rely on public transportation, options are somewhat limited outside of larger cities. In Jackson, the JATRAN bus system provides affordable transportation, with fares ranging from $1.50 for a single ride to $45 for a monthly pass. Meanwhile, smaller cities like Hattiesburg and Gulfport may offer local shuttle or van services, but these are less comprehensive and often cater to specific routes or populations.
Owning a car remains the primary mode of transportation for most Mississippians, and the state’s relatively low insurance rates and maintenance costs contribute to its affordability.
Healthcare costs are more affordable
Healthcare in Mississippi tends to be more affordable compared to the national average, but costs and accessibility can vary widely depending on location. The average cost of a doctor’s visit in the state is approximately $110, lower than the national average of $143. However, in rural areas, access to specialized care may be limited, potentially requiring residents to travel to cities like Jackson or Hattiesburg for treatment.
For health insurance, premiums in Mississippi are generally more affordable than in other states, though they can differ based on factors like age, location, and coverage levels.
Attractive tax structures
Mississippi’s tax structure is relatively affordable, with no estate or inheritance taxes and a moderate income tax rate. The state has a flat 5% income tax for taxable income over $10,000, offering relief for middle-income earners. Sales tax is 7%, with localities adding up to 1%, making the combined rate 8% in some areas, and food and groceries are subject to this tax. Property taxes are low, with an average effective rate of 0.76%, and homeowners can benefit from homestead exemptions. Mississippi does not impose personal property taxes on vehicles, adding savings for car owners. Overall, the state’s tax structure is attractive due to its low property taxes and absence of estate taxes, though the relatively high sales tax on essentials like groceries should be considered in the budget.
How much do I need to earn to live in Mississippi?
To live comfortably in Mississippi while adhering to the 30% rule, you should aim to spend no more than 30% of your gross monthly income on housing. With the average rent for an apartment in the state at $1,159 per month, you would need to earn at least $3,863 per month, or about $46,356 annually before taxes, to stay within the 30% guideline. This ensures that your rent is manageable within your overall budget, leaving room for other living expenses like utilities, groceries, and transportation.
Methodology
Average 1-bedroom and 2-bedroom rent sourced from Rent. Median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin.
