Finding the Cheapest College Towns: 10 American Cities Where Student Budgets Can Actually Stretch

When tuition bills, textbooks, and living expenses start piling up, choosing where to go to college becomes a financial decision as much as an academic one. For students looking to maximize their money, the cheapest college towns across America offer a practical solution—allowing students to focus on their studies rather than constantly worrying about rent and daily expenses.

GOBankingRates analyzed 70 of the nation’s leading college towns using data from Sperling’s Best Places cost-of-living metrics and Zillow’s rental price information to identify the most budget-friendly options. The research revealed that affordability varies dramatically by region, with particularly strong opportunities in the Midwest and emerging alternatives in other parts of the country.

The Midwest Dominance: Six Budget-Friendly College Towns in America’s Heartland

The Midwest stands out as the most economical region for college students. Six of the ten cheapest college towns identified in this analysis are located in Iowa, Illinois, Indiana, and Missouri. These states have built a reputation for offering students lower housing costs, reduced utility expenses, and generally affordable living without sacrificing quality of life or educational opportunities.

Iowa City, Iowa anchors this region with an average monthly rent of $1,150 and a cost-of-living index of 87.2. Home to the University of Iowa, this city has built its identity around the university, with the Ped Mall serving as the social and academic heart of student life. The combination of reasonable housing expenses and low transportation costs makes it particularly attractive for students managing tight budgets.

Ames, Iowa provides another Midwest option with even lower housing costs at $1,028 per month and a cost-of-living index of 90.3. Situated 30 miles north of Des Moines, Ames hosts Iowa State University and benefits from below-average grocery and rental prices. The city maintains a population of about 70,000, creating a balanced community that’s neither too small nor overwhelming.

Champaign, Illinois represents the region’s second-lowest cost-of-living index at 79.2, with average rent around $1,204. The presence of the University of Illinois supports a vibrant student community, while the town’s commitment to arts and culture adds value beyond pure affordability metrics.

Bloomington, Indiana demonstrates consistent affordability across multiple expense categories—groceries, housing, healthcare, and utilities all fall below national averages. Monthly rent averages $1,156, with a cost-of-living index of 82.4. Indiana University Bloomington draws students to this community, which also offers proximity to Hoosier National Forest and Monroe Lake for outdoor recreation.

Columbia, Missouri achieves the lowest rent figure in this group at $1,068 monthly, paired with a cost-of-living index of 89.8. Surrounded by forests and rolling hills, the city hosts three higher education institutions—the University of Missouri, Columbia College, and Stephens College—creating a diverse academic environment while maintaining strong affordability.

Southern Opportunities: Mississippi and Kansas Lead Southern Affordability

The Deep South provides compelling alternatives for students seeking the cheapest college towns. Starkville, Mississippi delivers the third-lowest overall cost-of-living index at 82.0, with average monthly rent of $1,074. The city brands itself as “Mississippi’s College Town,” with Mississippi State University anchoring the community and students enjoying access to the Cotton District’s attractions and outdoor activities.

Manhattan, Kansas offers strong affordability despite being less widely known as a traditional college destination. Average rent runs $1,180 monthly with a cost-of-living index of 85.3—approximately 85% of the national median. The city, home to Kansas State University and several smaller institutions, provides an alternative to coastal college towns while maintaining a vibrant student population of about 55,000 residents.

Mountain and Eastern Hidden Gems

Beyond the Midwest and South, select locations offer distinct advantages for budget-conscious students.

Laramie, Wyoming attracts students interested in outdoor recreation—skiing, hiking, and fishing are integrated into student life. Home to the University of Wyoming, the city maintains average rent of $1,101 and a cost-of-living index of 92.8, making it competitive while offering lifestyle advantages.

Rexburg, Idaho ranks among the nation’s safest and most affordable college towns, with average monthly rent of $1,030 and a cost-of-living index of 93.1. Located near Yellowstone National Park and home to Brigham Young University-Idaho, Rexburg attracts students seeking affordability and natural recreation opportunities. The town’s character differs from typical college party towns, but it compensates with extensive student-organized activities and a tight-knit community.

Binghamton, New York stands out as the eastern representative with the lowest cost-of-living index overall at 74.7, despite higher average rent of $1,279. The presence of Binghamton University and State University of New York-Broome Community College creates educational diversity, while the city’s approximately 50,000 residents maintain a manageable urban scale.

Comparing Your Options: Data-Driven Selection

The ten cheapest college towns demonstrate that affordability depends on multiple factors working together. The research combined average rent prices with comprehensive cost-of-living indices—weighting housing costs 1.5 times—to create a reliable affordability ranking.

Cities like Rexburg ($1,030) and Ames ($1,028) offer the lowest absolute rent figures, while Binghamton (74.7 index) and Champaign (79.2 index) provide the most comprehensive living expense advantages. However, choosing among the cheapest college towns requires balancing pure affordability with lifestyle preferences, academic programs, and location amenities.

The prevalence of Midwest institutions in this ranking reflects years of economic stability and lower housing inflation in these regions. However, the inclusion of options from Mississippi, Wyoming, Idaho, and New York demonstrates that budget-friendly college environments exist across diverse geographic areas and climate zones.

Strategic Selection: Making the Cheapest College Towns Work for You

For students committed to minimizing financial strain, these cheapest college towns provide verified opportunities to stretch limited budgets. Whether prioritizing the lowest possible rent, comprehensive cost-of-living advantages, or a combination of affordability with specific lifestyle or academic factors, options exist across multiple regions.

The data suggests that students willing to consider less conventional college destinations—particularly in the Midwest and South—can achieve monthly housing costs under $1,100 while accessing quality higher education. Combined with university scholarships, part-time work, and disciplined budgeting, enrolling in one of these affordable college towns makes financial stability during university years significantly more achievable.

For those seeking the ultimate lowest-cost experience, Rexburg, Ames, and Columbia offer monthly rent under $1,070, while Binghamton provides the best comprehensive living cost advantage despite slightly higher rent. Whatever balance of factors matters most to your college decision, the cheapest college towns identified here provide concrete options backed by reliable rental and cost-of-living data.