5 States Where It’s Easiest To Become Middle Class in 2025
Written by
Martin Dasko
Edited by
Amen Oyiboke
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According to the Pew Research Center analysis of government data, 61% of American households were living in middle-class households. A previous article on GOBankingRates determined that the income range for the middle was anywhere from $56,600 to $169,800.
However, the ability to live a middle-class lifestyle can’t solely be based on your income since every geographic region has a different cost of living. Some of the key considerations included favorable tax policies, the average cost of living, homeownership rates, average household income, average rent, and other financial factors. The average cost of living was sourced from Livingcost.org for a family of four. The average monthly rent was obtained from RentCafe, homeownership rates were derived from Visual Capitalist, and the average household income was obtained from Income By Zipcode.
GOBankingRates spoke with financial experts to find the states where it’s easiest to get to the middle class in 2025 if you’re looking to move.
Florida
- Average cost of living: $5,755
- Homeownership rate: 67.3%
- Average rent: $1,984
- Average household income: $102,130
“Florida and Texas have no state income tax and moderate to low cost of living depending upon the locale (rural areas being cheaper than the cities),” said Chad D. Cummings, CPA, and CEO of Cummings & Cummings Law. Florida made this list because one can keep more of their income and find affordable housing if they choose to live in a rural part of the state.
Texas
- Average cost of living: $4,905
- Homeownership rate: 63.6%
- Average rent: $1,458
- Average household income: $106,819
With an average home value of $298,906, Texas made the list because you can maintain a middle-class lifestyle by purchasing a home in a rural area and keeping more of your paycheck.
Tennessee
- Average cost of living: $5,037
- Homeownership rate: 68.9%
- Average rent: $1,537
- Average household income: $93,479
“Tennessee boasts a robust economy with numerous excellent job options and opportunities for career growth,” said Melanie Musson, a finance expert with Quote.com. “Homeownership in the state is higher than the national average, and there’s a wide range of average home prices, depending on where you live.”
It’s worth pointing out that as of 2024, 65.7% of American households own their home, and the figure was 68.9% for Tennessee.
Mississippi
- Average cost of living: $4,451
- Homeownership rate: 75.5%
- Average rent: $1,317
- Average household income: $76,955
Cummings noted that Mississippi’s low housing prices and average rent make the state favorable for a middle-class lifestyle due to the low cost of living. According to Zillow, the average selling price of a home in the state was around $188,641, which is much lower than the national average of $363,932.
South Dakota
- Average cost of living: $4,417
- Homeownership rate: 69.3%
- Average rent: $1,175
- Average household income: $95,050
“The cost of living is low, housing prices are affordable, and there’s no income tax,” said Musson. “The average income in the state is relatively low, but there are several thriving economic centers where it is possible to earn a higher income.”
With affordable rent and higher homeownership rates, it’s easier to get into a middle-class lifestyle in South Dakota than in many other states.
Middle Class Considerations
If you’re looking to relocate to a different state to live a middle-class lifestyle or to improve your quality of life, there are a few considerations that you can’t ignore outside of just housing prices.
You Have to Factor In Hidden Costs
“States with no income tax create short-term cash flow gains but often impose punishing hidden levies,” said Cummings. “Texas, Florida, and Tennessee advertise themselves as tax havens, but the absence of an income tax is offset by aggressive property and consumption-based taxes.”
You should remember that, although you can keep more of your paycheck in these states, you may end up spending more on insurance premiums. Cummings pointed out that insurance premiums in Florida can easily exceed $5,000 annually due to hurricanes, which would bring up your overall housing costs. This means that you’ll want to run all of the numbers before relocating your family.
You Should Review Wages and Expenses
“California’s average household income exceeds $95,000, but average rents in Los Angeles now surpass $2,800 per month, erasing wage gains,” said Cummings. “Meanwhile, Iowa’s $70,000 average income appears modest, yet mortgage payments on a $200,000 home consume less than 20% of gross income.”
While it may be tempting to move to a state with a higher income, you have to factor in the higher expenses that come with it, which could hurt your ability to enjoy a middle-class lifestyle. You’ll want to compare the income and expenses in the state before deciding to move.
GOBankingRates determined that with inflation and the cost of living skyrocketing, the dividend line that defines the American middle class has gone up significantly. You’ll want to ensure that you can afford the housing costs relative to your income in the new state before making the move.
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