A lot of these states around the southern United States have a pretty low cost of living, but when you realize a number of people are working somewhere making $7.25 an hour, I guess that makes sense. If you can find a good job, I'd say Tennessee, Kentucky, Arkansas, Mississippi, etc. are all very affordable places to live. Kentucky also doesn't have sales tax on groceries (if I remember correctly), but they have a very sucky state income tax.