Best Affordable Places to Live in Nebraska in 2024
(Last Updated – 12/2023)
Nebraska, in America’s heartland, is known for being home to vast cornfields, Warren Buffett, and the College Baseball World Series. Nearly two million people live here, with more newcomers arriving each year. What attracts people to the Cornhusker State?
A low cost of living is at the top of the list, along with moderately priced homes and property taxes that won’t break the bank — not to mention beautiful scenery and friendly people. If you’re looking for the best places in Nebraska to live on a budget, read on to learn which cities stand out the most.
Best Places to Live in Nebraska
Nebraska offers plenty of variety for those seeking to make a home here, from larger cities like Omaha to smaller, lesser-known spots. If you’re on the hunt for an affordable place to live, comparing the cost of living by state is a good place to start. Nebraska falls below the national average cost of living, which can appeal to families, young professionals, and retirees alike.
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Best Affordable Places to Live in Nebraska
To find the best affordable places to live in Nebraska, we used the Composite Cost of Living Index as a guide. This index measures the cost of living for things like housing, food, transportation, and household expenses. Housing is affordable in the state overall, and first-time homebuyer programs can put property ownership even closer in reach.
1. Crete
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If you prefer a smaller-town atmosphere while still being close to the bigger city, Crete fits the bill. Situated about 25 miles from Lincoln, Crete is one of the most affordable cities in Nebraska based on its overall cost of living, particularly with regard to housing. The area is diverse and there’s a strong sense of community that binds residents together.
Population: 7,021
Median Household Income: $51,520
Cost of Living: 78% of U.S. average
Median Rent Price: $1,200/month
Home Price-to-Income Ratio: 4.3
Average Property Tax: 1.54%
Housing Affordability: Crete’s rental prices are below the national median and most renters aren’t shelling out too sizable a chunk of their income for housing. At an average home value of around $220,000, the town ranks below the national average.
2. Bellevue
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Bellevue is part of the Omaha-Council Bluffs metro area and it’s one of the larger suburban spots to make our list of the best places to live in Nebraska. Originally established as a fur-trading post, it’s the oldest continuous settlement in the state and is a thriving city that attracts families, young professionals, and retirees who are looking for convenient access to quality health care.
Population: 63,015
Median Household Income: $76,534
Cost of Living: 95% of U.S. average
Median Rent Price: $1,517/month
Home Price-to-Income Ratio: 3.5
Average Property Tax: 2.18%
Housing Affordability: Bellevue has slightly higher rental rates, though prices are still below the national median. The price-to-income ratio is on the lower side, though homeowners are subject to a higher property tax rate here.
3. Omaha
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Omaha is the most populous city in Nebraska and its thriving economy is a definite mark in its favor for attracting newcomers. Job opportunities abound, as do local attractions, including the famed Henry Doorly Zoo and Aquarium. Parents who move here will appreciate the well-rated school system.
Population: 485,153
Median Household Income: $65,359
Cost of Living: 93% of U.S. average
Median Rent Price: $1,395/month
Home Price-to-Income Ratio: 4.94
Average Property Tax: 2.16%
Housing Affordability: Omaha features plenty of affordable rental options, something you don’t always see in a larger city. The price-to-income ratio is a tad higher than other Nebraska cities, but the large size of the market and the many homes at all price points means it could be easier to find a place here.
4. Kearney
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Kearney is consistently voted as one of the best places to live in Nebraska. Whether you’re interested in shopping, visiting local historic sites, or immersing yourself in the city’s diverse culture you can do all of that and more here. Kearney also affords numerous opportunities to spend time outdoors, hiking, biking, kayaking, and canoeing.
Population: 34,277
Median Household Income: $62,695
Cost of Living: 88% of U.S. average
Median Rent Price: $1,999/month
Home Price-to-Income Ratio: 4.5
Average Property Tax: 1.53%
Housing Affordability: Kearney is one of the most expensive Nebraska cities for renters, thanks to stiff competition for available housing. Owning a home could prove to be more affordable than renting here, and property taxes won’t break the bank. Completing the mortgage preapproval process can give you an idea of how much you might be able to borrow if you plan to buy.
5. Lexington
Lexington is a 40-minute drive away from Kearney and you might consider moving here instead if you’re looking for lower housing costs or a less populous area. One of the main attractions for locals and visitors alike is Johnson Lake, which is ideally suited for boating, fishing, tubing, and other water sports.
Population: 10,725
Median Household Income: $56,729
Cost of Living: 78% of U.S. average
Median Rent Price: $1,340/month
Home Price-to-Income Ratio: 3.2
Average Property Tax: 1.63%
Housing Affordability: Lexington offers a low cost of living overall, with rental prices that are lower than the national median. Property tax is also low and the price-to-income ratio makes the area highly affordable.
Recommended: Mortgage Prequalification vs. Preapproval: The Differences
Best Places to Live in Nebraska for Families
Raising a family can influence where you choose to live, as you might prioritize renting or buying in an area with good schools and plenty of things for kids to do. These Nebraska cities are the best overall for people with families or those looking to start one.
1. Seward
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Seward is part of the Lincoln metro area, which could make it a good fit for families who prefer the suburbs to the busier city. Parents will be happy to hear that the schools are well-regarded. If you’re looking for something fun to do with kids, you can find the world’s largest time capsule located here.
Population: 7,663
Median Household Income: $68,348
Cost of Living: 89% of U.S. average
Median Rent Price: $873/month
Home Price-to-Income Ratio: 3.9
Average Property Tax: 1.46%
Housing Affordability: Seward offers some of the lowest rent prices of any city on our list. The price-to-income ratio is also low. If you’re interested in owning a home, researching tips to qualify for a mortgage can make the process of getting a loan easier to navigate.
2. Papillion
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Papillion is a suburb of Omaha that’s routinely at the top of ‘best places to live in America’ lists. It offers plenty of family-friendly attractions, and parents appreciate its good-quality schools. French fur traders are reportedly responsible for the town’s name, the French word for butterfly.
Population: 23,794
Median Household Income: $95,293
Cost of Living: 95% of U.S. average
Median Rent Price: $1,795/month
Home Price-to-Income Ratio: 3.9
Average Property Tax: 2.18%
Housing Affordability: Papillon is a little pricier for renters, though rental rates are still below the national median. The home-to-price income ratio is low but this area does have a higher property tax rate.
3. Gering
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Gering is an outstanding choice for families who are looking for a small-town feel. It’s quiet, there are lots of things to see and do around town with kids, and the cost of living isn’t a dealbreaker.
Population: 8,478
Median Household Income: $64,631
Cost of Living: 82% of U.S. average
Median Rent Price: $650/month
Home Price-to-Income Ratio: 2.8
Average Property Tax: 1.53%
Housing Affordability: Gering is another excellent pick for renters and buying a home is exceptionally affordable as well. Not only is the price-to-income ratio among the lowest of any city included in our list, but properties are well below what you’ll pay in other Nebraska cities.
4. Chalco
Chalco is another suburb of Omaha that’s considered a haven for families. It’s about a 20-minute drive into Omaha if you want to go to the city center, which is handy for commuters. The city boasts a quiet charm with a friendly atmosphere, something that’s encouraging for parents who are hoping for opportunities to make friends with other young families.
Population: 10,092
Median Household Income: $84,043
Cost of Living: 89% of U.S. average
Median Rent Price: $1,160/month
Home Price-to-Income Ratio: 3.2
Average Property Tax: 2.18%
Housing Affordability: Like Chalco, Gering has a higher property tax rate but a relatively modest price-to-income ratio. That makes it more affordable than a city like Walton, a suburb of Lincoln, where you might need to look into jumbo mortgage loans in order to buy. Rent prices aren’t overwhelming and the typical income here is on the higher end.
5. Bennington
If you’d like to stay close to the Omaha area and would like to live in a close-knit community, then Bennington might be worth considering. The suburb is small, but fast-growing, with more families moving into the area all the time. It’s modern enough to offer all the conveniences and amenities you might be looking for, without the nuisances of living in a denser city.
Population: 2,026
Median Household Income: $87,500
Cost of Living: 91% of U.S. average
Median Rent Price: $2,250
Home Price-to-Income Ratio: 4.6
Average Property Tax: 2.16%
Housing Affordability: Bennington has a slightly higher cost of living, and that’s reflected in housing and rent prices. However, rental rates are still under the national median and the price-to-income ratio isn’t overwhelmingly high.
Best Places to Live in Nebraska for Young Adults
Cities like Omaha and Lincoln tend to be magnets for recent college grads who are hoping to start their career. If you’re hoping to find your first job — or your next one — these are the Nebraska cities that offer the brightest prospects.
1. Ralston
Ralston is part of the Omaha metro area and it offers many of the things any young professional might value. There’s a vibrant nightlife scene, plenty of parks where you can go for a jog or walk the dog, and the many restaurants and cafes make it a foodie’s dream. Along with those features, Ralston is also an affordable place to live for workers who are trying to do life on an entry-level salary.
Population: 6,424
Median Household Income: $64,735
Cost of Living: 87% of U.S. average
Median Rent Price: $1,100/month
Home Price-to-Income Ratio: 3.7
Average Property Tax: 2.16%
Housing Affordability: Ralston may be a good place to live if you plan to rent, but houses are relatively affordable as well, though you would want to factor the area’s property tax rate, which is higher than that of some other Nebraska towns, into your budget. If this is your first time buying a home, explore the different types of mortgage loans before you go deep with your search.
2. Lincoln
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Lincoln is Nebraska’s second-largest city and its local economy revolves around business, manufacturing, agriculture, and transportation. Entrepreneurship is also encouraged here and there are more than a few small business owners launching new ventures. The median age of residents is around 30 and the vast majority of residents are single and childless, which could bode well for those seeking to find ‘the one’.
Population: 292,627
Median Household Income: $62,566
Cost of Living: 92% of U.S. average
Median Rent Price: $1,150/month
Home Price-to-Income Ratio: 4.3
Average Property Tax: 1.99%
Housing Affordability: Despite being one of the largest cities in Nebraska, Lincoln remains surprisingly affordable for both renters and homeowners.
3. Chadron
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Chadron is located in western Nebraska and despite its smaller size, it’s worth a look if you’re hoping to find a job or start a business. Like many Nebraska cities, it got its start as a fur trading post and today is a quiet enclave for those seeking some distance from larger urban areas. The natural landscape is a major plus for young people who are outdoorsy.
Population: 5,223
Median Household Income: $50,363
Cost of Living: 80% of U.S. average
Median Rent Price: $1,125/month
Home Price-to-Income Ratio: 3.5
Average Property Tax: 1.39%
Housing Affordability: Chadron is affordable where housing is concerned, though the overall cost of living isn’t as low as other Nebraska cities. Rents are below the median and homeowners get a break in the form of a lower property tax rate.
4. Gretna
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Gretna is on the smaller side but it’s growing rapidly, due to an influx of new residents who want to live relatively close to Omaha and Lincoln. The median household income is well above the national median and the typical resident is in their mid-30s. Most of the population is employed in white-collar jobs and roughly half of residents hold a college degree.
Population: 9,071
Median Household Income: $85,476
Cost of Living: 95% of U.S. average
Median Rent Price: $1,575/month
Home Price-to-Income Ratio: 4.8
Average Property Tax: 2.18%
Housing Affordability: Gretna’s rental rates are not exorbitant, though they are a little higher than other Nebraska locales. The price-to-income ratio is somewhat higher, though the typical household has a larger income than in many parts of the state.
5. La Vista
La Vista is also a suburb of Omaha and it manages to combine the best of both worlds, in terms of a small-town feel and big-city amenities. Young professionals will find plenty of affordable rental housing here. It’s perfectly situated for a short commute, though there are a good many job opportunities to be had in La Vista if you’re not interested in driving to Omaha.
Population: 16,379
Median Household Income: $70,310
Cost of Living: 95% of U.S. average
Median Rent Price: $1,185/month
Home Price-to-Income Ratio: 4.1
Average Property Tax: 2.18%
Housing Affordability: La Visa has low rents and moderately priced homes, making it budget-friendly for both renters and homebuyers. Property tax rates are on the high side for Nebraska.
Best Places to Live in Nebraska for Retirees
Good news: Starting in 2025, Nebraska will no longer tax Social Security benefits. These Nebraska cities may be suited for those seeking a lower cost of living in their later years.
1. Beatrice
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Beatrice sits about 40 minutes from Lincoln, making it close enough for day trips to visit doctors, check in on friends, or just go sightseeing. The population skews over-50 and there are more family households than non-family ones, with about half the population being either married or widowed. The local senior center regularly sponsors events and activities that are designed to encourage retirees to connect with their community.
Population: 12,223
Median Household Income: $45,858
Cost of Living: 77% of U.S. average
Median Rent Price: $850/month
Home Price-to-Income Ratio: 3.4
Average Property Tax: 1.57%
Housing Affordability: Retirees will find that renting is highly affordable in Beatrice, but buying a home isn’t out of the budget either.
2. Auburn
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Auburn is just up the road from Beatrice and it might be a perfect choice for retirees who are looking for a slower pace. It’s a smaller, friendly town with a low cost of living, which may be what you’re looking for if you’re retiring on a fixed income. Indian Cave State Park is a well-known spot for getting fresh air and exercise, and seniors can also stay active by participating in the many volunteer efforts around the city.
Population: 3,473
Median Household Income: $54,048
Cost of Living: 76% of U.S. average
Median Rent Price: $825/month
Home Price-to-Income Ratio: 2.5
Average Property Tax: 1.54%
Housing Affordability: Auburn is another city that could be a great choice for renters on a budget. Rent prices are much lower than the national median and the price-to-income ratio makes it one of the best cities to live in Nebraska overall.
3. South Sioux City
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South Sioux City is uniquely situated along the Nebraska border and sits directly across the Missouri River from Sioux City, Iowa. It’s about halfway between Omaha and Sioux Falls, South Dakota, making it a potentially ideal spot for retirees who want to routinely travel to any of these cities. There’s plenty of local history to soak up as well as numerous scenic trails for stretching your legs.
Population: 13,706
Median Household Income: $57,783
Cost of Living: 83% of U.S. average
Median Rent Price: $800/month
Home Price-to-Income Ratio: 3.5
Average Property Tax: 1.79%
Housing Affordability: South Sioux City is renter-friendly, with a median rental price that’s under $1,000 a month. The home price-to-income ratio is low enough to make housing affordable even for seniors living on a fixed income in retirement.
4. Sidney
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Sidney is located in western Nebraska, not far from the Colorado and Wyoming borders. It offers the epitome of small-town living and may be perfect for retirees who are looking for a cozy community in which to spend their golden years. The local senior center offers daily activities to help retirees stay active and involved alongside their peers.
Population: 6,423
Median Household Income: $49,812
Cost of Living: 78% of U.S. average
Median Rent Price: $1,350/month
Home Price-to-Income Ratio: 2.9
Average Property Tax: 1.94%
Housing Affordability: Sidney has one of the lowest price-to-income ratios in Nebraska, which might make it attractive for retirees who want to own a home. Rent prices are also affordable for those who’d rather not be locked in to a long-term mortgage loan.
5. Aurora
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Aurora is considered to be a hidden treasure among retirees or anyone who’s looking for a simpler way of living. It’s just over an hour’s drive to Lincoln, which isn’t too inconvenient for visiting health care providers or friends and family. There are recreational activities here for people of all ages but retirees may especially appreciate the Plainsman Museum, which offers an in-depth look at the area’s history.
Population: 4,646
Median Household Income: $65,833
Cost of Living: 86% of U.S. average
Median Rent Price: $830/month
Home Price-to-Income Ratio: 3.5
Average Property Tax: 1.1%
Housing Affordability: Aurora features low rents and low property taxes, giving retirees more options when it comes to finding housing that fits their budget. Property taxes are also on the lower side, which may be a selling point for retirees who plan to own a home.
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Best Places to Live in Nebraska Near the Water
Nebraska has its fair share of man-made beaches as well as rivers and creeks for those who like spending time on the water. Here are some of the most affordable places to settle.
1. Burwell
Burwell is a hotspot for those who enjoy boating, fishing, skiing, and other water sports. The Calamus Reservoir State Recreation Area is perfect for a weekend camping trip and there are 31 miles of sandy beaches to lounge on (though, because there are no lifeguards on duty, swimming is at your own risk).
Population: 1,091
Median Household Income: $50,833
Cost of Living: 77% of U.S. average
Median Rent Price: $440/month
Home Price-to-Income Ratio: 4.5
Average Property Tax: 1.3%
Housing Affordability: Burwell has the lowest rent prices of any Nebraska city we’ve profiled. And the average home value, at around $228,000, is under the U.S. average. Property tax rates are among the lowest of any city in the state.
2. Fremont
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Fremont could be a dream place to live for anyone who loves being close to the water. Fremont Lakes State Park is where you’ll find residents boating, swimming, camping, and picnicking when the weather is nice. If that’s not exciting enough, you can book an airboat tour along the Platte River, which is a great opportunity to catch a glimpse of the local wildlife.
Population: 27,318
Median Household Income: $57,551
Cost of Living: 79% of U.S. average
Median Rent Price: $1,200/month
Home Price-to-Income Ratio: 3.9
Average Property Tax: 1.58%
Housing Affordability: Fremont’s housing affordability is in the middle — not overly expensive, but not overly cheap either. Rent prices are below the national media and property taxes aren’t so high that they’d be challenging for a homeowner to pay.
3. Grand Island
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Grand Island is also close to the Platte River but there are other ways to enjoy the water here. For example, if you have kids you might take them to the Island Oasis Water Park for some splashy fun. In the spring, you can observe the migration of the sandhill cranes which draws over one million waterfowl to the area.
Population: 52,513
Median Household Income: $58,162
Cost of Living: 84% of U.S. average
Median Rent Price: $1,670/month
Home Price-to-Income Ratio: 3.9
Average Property Tax: 1.63%
Housing Affordability: Grand Island is a little more expensive for renters, though owning a home is fairly affordable. Property taxes are on par with other larger Nebraska cities, though not so high as to put owning a home out of reach.
4. Doniphan
Doniphan is a teeny, tiny town that’s just a stone’s throw from Grand Island. Fishing is an activity that many local residents engage in and the Crystal Lake State Recreation Area has plenty of spots to cast a line. Mormon Island State Recreation Area, meanwhile, is a popular spot for camping, swimming, fishing, and hiking along the many trails in the area.
Population: 776
Median Household Income: $68,333
Cost of Living: 84% of U.S. average
Median Rent Price: $987/month
Home Price-to-Income Ratio: 4.6
Average Property Tax: 1.63%
Housing Affordability: Doniphan is a solid pick for renters, as the median rental goes for under $1,000 a month. The price-to-income ratio is a little higher, though not much more than what you’ll see in other Nebraska towns and cities. Unsure whether it makes sense to switch from renting to buying? Visit the home loan help center to learn more about how the process works.
5. Ogallala
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There are several choice spots for enjoying the water in Ogallala. First, there’s Lake McConaughy where you’ll find Lake McConaughy Visitors Center and Water Interpretive Center, also called a “water museum.” Then there’s Lake Ogallala, which is a top tourist destination for bird-watching thanks to the hundreds of species that can be found dotting the shores. Kingsley Dam is another spot for bird-watching, as bald eagles tend to congregate here in the spring.
Population: 4,823
Median Household Income: $47,892
Cost of Living: 81% of U.S. average
Median Rent Price: $1,175/month
Home Price-to-Income Ratio: 4.1
Average Property Tax: 1.43%
Housing Affordability: Ogallala’s rental market is accessible, as there are plenty of units available and rent prices aren’t eye-watering. The price-to-income ratio is a little higher, but that may reflect the fact that the overall cost of living is higher as well.
The Takeaway
Nebraska could certainly make it to your shortlist if you’re looking for an affordable place to live. When deciding which city or town might be best, consider what’s most important to you. All of the places we’ve recommended have a cost of living that’s below the national average, but some are less expensive than others. Housing costs aside, think about what else is a must-have, whether it’s dining, nightlife, shopping, or plenty of green spaces.
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FAQ
Is Nebraska a good place to live for 2023?
Nebraska is a good place to live if you’re looking for affordable housing and a low cost of living. Rent prices are well below the national median in most areas of the state and there are plenty of homes listed for sale at reasonable prices.
Where is the most beautiful place to live in Nebraska?
Papillon has a reputation for being one of the most scenic places to live in Nebraska. There are plenty of outdoor areas where residents can enjoy nature and the city has a calm, peaceful vibe.
Where is the cheapest and nicest place to live in Nebraska?
Chadron ranks as one of the least expensive and nicest cities to live in Nebraska. It’s a small town but if you don’t mind that, you’ll enjoy the quaint feel and the low cost of living.
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