10 cheapest U.S. cities to live in

10. Winston-Salem, N.C.

Cost of Living Index: 87.5
Population: 229,617
Median household income: $41,483 (U.S. median: $51,914)
Average home price: $199,118 (U.S. average: $283,529)

Winston-Salem is far and away the most budget-friendly big city in the Tar Heel State, with Raleigh a distant second. The average home sells for less than $200,000, and a typical apartment rents for just $590 a month. Cheap housing is offset somewhat by the highest grocery and health-care expenses of our cheapest 10 cities. Wake Forest University and cigarette maker Reynolds American are among the area's biggest employers.

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9. Springfield, Ill.

Cost of Living Index: 87.1
Population: 115,121
Median household income: $47,209
Average home price: $210,673

Costs in the capital of Illinois are low, much lower than in Chicago to the north. Take housing, for example. The average home price in Springfield is $150,000 less than the cost of a typical home in the Windy City. That's a nice draw for families, as is the area's low unemployment rate. Living is made even more affordable by utilities costs — gas, electric, phone service, etc. — that fall nearly 15% below the national average.

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8. Wichita Falls, Texas

Cost of Living Index: 86.9
Population: 104,066
Median household income: $40,670
Average home price: $264,000

Wichita Falls has the highest average home price on our list of cheap cities, but low unemployment means more income-producing jobs to pay for those mortgage payments. Alternatively, renting is dirt cheap. A typical apartment in Wichita Falls goes for just $566 a month, nearly $300 less than the national average. To put that figure in perspective, the average apartment in Manhattan rents for $3,777. Other living costs are reasonable across the board. Grocery, utility, transportation and health-care expenses are all 10% or more below the U.S. average. The Wichita Falls area boasts four airports plus Sheppard Air Force Base.

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7. Pueblo, Colo.

Cost of Living Index: 86.2
Population: 105,957
Median household income: $34,323
Average home price: $196,330

Although it's just 100 miles from Denver, Pueblo is an economic hub of southeastern Colorado and has a much lower cost of living. Homes here are cheaper, on average, than in the rest of the state — and the nation. In fact, you can get a house in Pueblo for $87,000 less than the U.S. average. That's a good thing, because the city's median household income is the lowest on our list, and grocery, utility and transportation costs are among the highest. There's no charge, of course, for mountain views, and several national parks and forests are within easy driving distance.

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6. Conway, Ark.

Cost of Living Index: 86.2
Population: 56,255
Median household income: $41,917
Average home price: $230,199

Conway is just 30 miles north of Little Rock, but it's a world away from the Arkansas capital when it comes to living costs. The average home price in Conway, a town nestled between Lake Conway and the Arkansas River, is $50,000 less than in Little Rock. Other costs in Conway, especially for health care, are lower, too. A visit to the doctor runs nearly 15% less than the national average, and a dental checkup costs almost 25% less. Even a bottle of ibuprofen is priced $1.15 lower than you'd typically find elsewhere: $8.29 versus the U.S. average of $9.44.

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5. Temple, Texas

Cost of Living Index: 85.7
Population: 63,548 
Median household income: $47,240
Average home price: $206,602

Housing prices in Temple are more than $75,000 below the national average, even though the median household income is the highest on this list. Health-care costs are also low here. One reason: Temple is a regional medical center and has more physicians per capita than any other community in the U.S. Groceries, at 18% less than the U.S. average, are the cheapest among these 10 cities.  The Temple metropolitan area, 65 miles north of the state capital, Austin, includes Killeen and Fort Hood, two cities that also score high marks for affordability.

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4. Fayetteville, Ark.

Cost of Living Index: 84.6
Population: 71,770 
Median household income: $37,113
Average home price: $228,200

This low-cost city lies in the northwestern corner of Arkansas near the borders of Missouri and Oklahoma. The Ozark National Forest is a short car ride away. But Fayetteville is best known for being home to the University of Arkansas, a big draw as an employer and an even bigger draw during football season. Unemployment in the Fayetteville area is below the national average, thanks to the strong local economy. It doesn't hurt that Wal-Mart is based in nearby Bentonville.

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3. McAllen, Texas

Cost of Living Index: 83.8
Population: 125,590
Median household income: $39,547
Average home price: $178,000

You'd better be a fan of Tex-Mex food if you live in McAllen. The city is in the southern tip of Texas along the Rio Grande. It's a closer drive to Monterrey, Mexico — about three hours away — than to San Antonio (four hours) or Houston (six hours).  Housing costs are by far the lowest on our list, and grocery prices are among the lowest. The low cost of living has attracted retirees and snowbirds. The McAllen metro area, which includes Edinburg and Mission, has one of the fastest-growing populations in the U.S.

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2. Memphis, Tenn.

Cost of Living Index: 83.7
Population: 654,876 
Median household income: $36,473
Average home price: $180,375

Memphis is the largest city in Tennessee and third-largest in the South. But it doesn't have big-city prices. Housing costs are the second-lowest on this list, after McAllen, Texas. You can buy a home in Memphis for $100,000 less than the U.S. average. The Mississippi River port city is a hub for the shipping and transportation industries. Memphis is home to three Fortune 500 companies, numerous colleges and universities and, of course, Graceland.

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1. Harlingen, Texas

Cost of Living Index: 82.8
Population: 64,186 
Median household income: $34,748
Average home price: $229,558

Head east from McAllen, No. 3 on our cheapest-cities list, toward the Gulf of Mexico, and in a half-hour or so you'll run into Harlingen, another South Texas city with ultralow living costs. Housing prices are a big factor in making it the most affordable city to live in on our list. The cost of groceries, transportation and health care also fall below the national average. But affordability doesn't necessarily equate to prosperity. The median household income for Harlingen comes in $17,000 shy of the U.S. median, and unemployment hovers in the double digits. Mexico is just a stone's throw away, as is Brownsville, another border city with similarly low living costs.

See the 10 most expensive cities to live in on Kiplinger.com.

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