Mississippi cost of living
Can you afford to live in the Magnolia State?
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Relocating to Mississippi offers a chance to experience Southern hospitality, slower-paced living and close-knit communities. However, getting a handle on the real expenses in Mississippi is essential before making any big decisions.
To determine the cost of living in Mississippi, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in Mississippi spend $42,131 each year on goods and services, on average.
Jump to insightThe median rent in Mississippi is $988, versus the national median rent of $1,639.
Jump to insightResidents in Mississippi spend $290.64 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $2.69 in Mississippi.
Jump to insightRecent data shows that employees in Mississippi pay $1,633 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in Mississippi
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in Mississippi was $42,131 in 2023. This number reflects the costs residents face each year across the most significant spending areas: housing, health care, food, fuel and other necessities.
Here’s a breakdown of the largest spending categories in Mississippi:
| Category | Annual per-capita cost in Mississippi |
|---|---|
| Housing and utilities | $7,023 |
| Health care | $7,645 |
| Food and beverages for off-premises consumption | $4,022 |
| Gasoline and other energy goods | $1,561 |
| All other personal consumption expenditures | $21,880 |
| Total cost | $42,131 |
Housing costs in Mississippi
For most families, the biggest chunk of the monthly budget goes toward housing. Recent data from Apartments.com shows the average rent in Mississippi is $988, which is lower than the national median rent of $1,639. The exact amount you pay will depend on whether you live in a city like Jackson or a smaller rural community, as well as the size of your rental.
The U.S. Census Bureau’s 2023 American Community Survey details average monthly rents in Mississippi:
- One-bedroom rent: $724
- Two-bedroom rent: $859
- Three-bedroom rent: $1,039
- Four-bedroom rent: $1,130
If buying is on your radar, the median home price in Mississippi is $263,400, which is much less than the current U.S. median home price of $446,638.
Don’t overlook property taxes in your calculations. Mississippi’s effective property tax rate is 0.58%. That ranks it at No. 36 for highest effective property tax rates in the country.
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Food costs in Mississippi
Grocery costs in Mississippi are shaped by where you shop and how you plan meals. According to the latest U.S. Census data, the average household in Mississippi spends $290.64 per week for food at home, compared with $270.21 nationally.
How much you actually spend on food will come down to individual habits. Shopping at local markets or cooking meals from scratch can mean lower bills — especially in rural areas.
On the other hand, dining at restaurants or shopping at specialty stores in Mississippi’s larger cities will increase your expenses.
Transportation costs in Mississippi
The cost of getting around is another important consideration. Mississippi drivers pay an average of $2.69 per gallon for regular gas, compared with the U.S. average of $3.13.
For insurance, the average annual premium for auto coverage in Mississippi is $1,232.35, while the national average is $1,258.
Health care costs in Mississippi
Health insurance is a significant expense for many families. In Mississippi, employees who get insurance through work contribute an average of $1,633 annually, with employers picking up the remaining $5,610 of the $7,243 total premium.
By comparison, the national average employee contribution is $1,640, with a total premium of $8,182.
Utility costs in Mississippi
Utility bills are a regular part of the monthly budget. In Mississippi, the average electric bill is $153.07, compared with $136.84 nationally.
Natural gas prices in Mississippi are $12.19 per thousand cubic feet, while the national average is $12.92.
FAQ
Does Mississippi have a high cost of living?
No, Mississippi does not have a high cost of living compared with the national average. Housing is noticeably less expensive than in most other states. In fact, it’s one of the best states for young people to buy a home.
Is Mississippi a good place to live?
Yes, Mississippi is a good place to live if you value affordable living and a welcoming atmosphere. Many people are choosing to move to Mississippi thanks to lower costs, which makes it easier to find housing that fits their budget.
» RELATED: Best moving companies
Is Mississippi good for renters?
Yes, Mississippi is good for renters. Rent is more affordable than in most states, and many rental units are available. However, tenant protections are not as strong there as in some other states.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
