The rising cost of living in many cities has made affordable housing a challenge, especially for veterans who may be balancing various post-service adjustments.
Fortunately, some cities offer a low cost of living, abundant veteran resources, and quality amenities, providing veterans with ideal places to settle down without breaking the bank.
This article explores the top 10 cities in the U.S. with the lowest cost of living for veterans in 2024, supported by housing data and market trends.
Factors Considered for Cost of Living
- Housing Affordability (median home prices, rent averages)
- Cost of Essentials (groceries, healthcare, utilities)
- Veteran-Friendly Benefits (veteran services, tax breaks)
- Employment Opportunities (particularly for veterans)
Top 10 Cities With the Lowest Cost of Living for Veterans
1. San Antonio, Texas
- Median Home Price: $294,000
- Cost of Living: 13% below the national average
- Veteran Benefits: San Antonio has robust veteran support, such as the Texas Veterans Commission, which assists veterans with benefits applications, job placement, and VA healthcare enrollment.
- Quote: “San Antonio offers veterans an affordable place to live with a strong support system for those transitioning from active duty to civilian life,” says Sarah Miles, Real Estate Expert at Lone Star Veterans Realty.
2. Oklahoma City, Oklahoma
- Median Home Price: $180,000
- Veteran Resources: Home to the Oklahoma Department of Veterans Affairs, offering specialized services for veterans.
- Additional Benefits: Oklahoma also provides veterans with property tax exemptions and reduced business license fees.
3. Columbia, South Carolina
- Median Home Price: $235,000
- Cost of Living: 15% below national average
- Veteran-Friendly Features: Tax exemptions on property for disabled veterans, free or reduced-cost licenses, and healthcare access at the VA Columbia Medical Center.
4. Des Moines, Iowa
- Median Home Price: $228,000
- Cost of Living: 12% below national average
- Unique Resources: Des Moines has a strong job market, low crime rates, and a supportive veteran community.
5. Louisville, Kentucky
- Median Home Price: $245,000
- Veteran Benefits: The Kentucky Department of Veterans Affairs offers services such as home loan support and disability claim assistance.
- Quote: “Louisville’s combination of affordable housing and veteran-friendly amenities makes it an excellent place for veterans,” notes Michael Turner, Senior Analyst at Veteran Housing Advisors.
6. Tulsa, Oklahoma
- Median Home Price: $180,000
- Affordability: Known for low housing costs and robust veteran healthcare resources.
- Benefits: Tax exemption for disabled veterans and a significant veteran population for community support.
7. Knoxville, Tennessee
- Median Home Price: $265,000
- Veteran Resources: The city has multiple organizations that assist veterans with job placement and healthcare services.
- Low Utility Costs: Knoxville offers some of the lowest utility costs in the country, easing monthly expenses.
8. Fayetteville, Arkansas
- Median Home Price: $225,000
- Veteran-Specific Programs: Arkansas offers multiple tax benefits and educational incentives for veterans and their families.
- Quote: “Affordable and community-oriented, Fayetteville provides veterans with both financial ease and a supportive community,” says Lisa Reed, Realtor at Ozark Veteran Realty.
9. Dayton, Ohio
- Median Home Price: $220,000
- Cost of Living: 18% below national average
- Military Community: The city’s proximity to Wright-Patterson Air Force Base makes it veteran-friendly with significant military and VA resources.
10. El Paso, Texas
- Median Home Price: $213,000
- Veteran Focused Programs: Texas offers multiple benefits to veterans, including home loan programs and tax exemptions for disabled veterans.
- Quote: “El Paso’s affordability and the presence of Fort Bliss make it a top choice for veterans seeking both low costs and military community,” says John Martinez, Senior Real Estate Agent at Borderland Realty.
Housing Market Trends in 2024 for Veterans
- National home prices have slightly declined, making affordable cities more appealing for homebuyers.
- Texas and the Midwest regions show continued growth in veteran populations due to the affordability and availability of veteran programs in these areas.
| City | Median Home Price | Cost of Living (Compared to National) |
|---|---|---|
| San Antonio, TX | $294,000 | -13% |
| Oklahoma City, OK | $180,000 | -15% |
| Columbia, SC | $235,000 | -12% |
| Des Moines, IA | $228,000 | -10% |
| Louisville, KY | $245,000 | -14% |
Benefits for Veterans in Affordable Cities
- Lower Housing Costs: Cities with lower housing prices ease financial burdens, especially in retirement.
- Access to VA Loans: VA loans offer veterans no down payments and low-interest options, making homeownership even more achievable in low-cost areas.
- Property Tax Exemptions: Many states provide veterans with property tax reductions or exemptions.
VA Loans for Veterans: Requirements and Benefits
VA loans, backed by the U.S. Department of Veterans Affairs, offer veterans and active-duty military personnel an accessible route to homeownership with several unique benefits. These loans are specifically designed to make buying a home more affordable and come with flexible requirements compared to traditional loans.
Requirements for VA Loans
While the VA doesn’t set strict credit score requirements, most lenders look for a credit score of around 620. Here are the main requirements to qualify:
- Certificate of Eligibility (COE): Veterans must obtain a COE from the VA, which proves their eligibility for the loan based on service history.
- Service Requirements: Typically, veterans who have served at least 90 days during wartime, 181 days during peacetime, or six years in the National Guard or Reserves meet the service eligibility criteria.
- Occupancy Requirement: VA loans are for primary residences, so borrowers must plan to occupy the property as their main home.
- Debt-to-Income Ratio (DTI): Most lenders require a DTI below 41%, but the VA loan’s lenient underwriting guidelines can sometimes accommodate higher ratios.
Benefits of VA Loans
VA loans come with several financial advantages, particularly for veterans and active-duty military members. These benefits make homeownership more achievable:
- No Down Payment Required: Qualified borrowers can finance up to 100% of the home’s value without a down payment, a unique benefit compared to conventional loans.
- No Private Mortgage Insurance (PMI): Unlike other loan types requiring PMI when less than 20% down is paid, VA loans don’t need PMI, saving veterans hundreds of dollars monthly.
- Competitive Interest Rates: VA loans often come with lower interest rates compared to conventional mortgages, reducing monthly payments and overall loan costs.
- Lenient Credit Requirements: While lenders usually look for a minimum credit score of 620, VA loans are generally more accessible to those with varying credit histories.
- Lower Closing Costs: The VA limits certain fees that veterans can be charged, and some costs can even be covered by the seller.
- Funding Fee Waivers: Veterans with a service-connected disability are exempt from the VA funding fee, making the loan even more affordable.
Example of Monthly Payments by Loan Type
| Loan Type | Interest Rate | Down Payment | Monthly Payment (on $300,000) |
|---|---|---|---|
| VA Loan | 5.75% | $0 | $1,750 |
| Conventional Loan | 6.25% | $15,000 | $1,847 |
| FHA Loan | 6.5% | $10,500 | $1,897 |
These benefits and flexible requirements make VA loans one of the most affordable and accessible home financing options available to veterans and service members.
Common FAQs for Veterans Buying in Low-Cost Cities
What is the average cost of living for veterans in these cities?
Most cities on this list offer a cost of living between 10-15% below the national average, with housing and utilities as the main savings factors.
Are VA loans available in all these cities?
Yes, VA loans are available nationally, allowing veterans to benefit from lower interest rates and no down payment in these affordable cities.
What is the average home price in San Antonio for veterans?
As of 2024, the average home price in San Antonio is around $294,000, offering veterans an affordable option in a large city.
Can veterans access special state programs in Oklahoma City?
Yes, Oklahoma provides property tax exemptions and additional support for veterans seeking affordable homeownership.
What makes Columbia, South Carolina, affordable for veterans?
Low housing costs, tax exemptions, and support from the local VA medical center make Columbia an affordable option for veterans.
Are property taxes lower in these affordable cities?
Many states offer tax exemptions or reductions specifically for veterans, especially for those with service-connected disabilities.
How do utility costs compare in affordable cities?
Utility costs in cities like Knoxville and Dayton are below the national average, helping veterans manage monthly expenses.
Which city has the best job market for veterans?
Des Moines, IA, and Oklahoma City, OK, have strong job markets and high veteran employment rates.
The Bottom Line
Each of the cities on this list offers veterans affordability, community support, and access to key resources.
Whether it’s the low home prices in Oklahoma City, veteran-focused programs in San Antonio, or tax exemptions in Kentucky, veterans can find quality of life, community, and savings in these top 10 affordable U.S. cities.
