North Dakota’s cost of living runs about 9% below the national average, and in its smaller cities and towns that gap widens considerably. The state has no income tax on Social Security benefits, property taxes that run below the national median, and a housing market that still looks reasonable compared to most of the country.
The five towns below represent some of the strongest cases for affordable living in the state. They are all distinct communities with different characters, different employment bases, and different reasons to choose them.
1. Valley City, ND
Valley City sits along the Sheyenne River in Barnes County, about 60 miles west of Fargo on I-94. The cost of living index runs around 85, roughly 15% below the national average. The city has 6,575 residents, an unemployment rate around 2%, and a downtown corridor along Central Avenue that stays active year-round with locally owned shops, restaurants, and community events.
The major employers are Valley City State University, which has operated here since 1890 and enrolled 1,868 students as of Spring 2026, CHI Mercy Health at 570 Chautauqua Blvd, and Eagle Creek Software Services. Healthcare, education, and technology drive the employment base alongside agriculture-related sectors. Valley City is also the only community in North Dakota designated an American World War II Heritage City by the National Park Service, and Expedia named it the most beautiful town in the state in 2017.
The outdoor access is broad for a city this size. Lake Ashtabula, a 27-mile channel maintained by the Army Corps of Engineers north of the city, draws anglers, boaters, and campers across seasons. The 63-mile Sheyenne River Valley National Scenic Byway starts near the city. Medicine Wheel Park covers 30 acres on the southwest side and includes 12 Native American burial mounds. The Hi-Line Railroad Bridge, built in 1908, spans 3,860 feet and stands 162 feet above the valley floor. It is still in active use by BNSF Railway freight trains.
The violent crime rate runs about 39% below the national average. The school system includes Washington Elementary, named a National Blue Ribbon School by the U.S. Department of Education in 2015. For renters who want a stable, low-cost base within an hour of the Fargo metro, Valley City is one of the stronger options in the state.
2. Jamestown, ND
Jamestown sits at roughly the midpoint between Fargo and Bismarck, about 90 miles from each, on I-94 in Stutsman County. The cost of living index runs around 80, about 20% below the national average, and the city’s population of 15,849 makes it one of the larger communities on this list. It is the county seat of Stutsman County and home to the University of Jamestown, a private liberal arts institution founded in 1883.
The employment base in Jamestown is more diversified than in smaller North Dakota cities, with manufacturing, healthcare, education, and retail all represented. Jamestown Reservoir and Pipestem Dam provide water sports and outdoor recreation.
The National Buffalo Museum and Frontier Village, home to the world’s largest buffalo monument at 26 feet tall and 60 tons, anchor the city’s historical identity. For renters who want a larger community with more employment options while keeping costs well below the national average, Jamestown is a strong candidate.
3. Wahpeton, ND
Wahpeton sits at the confluence of the Bois de Sioux and Otter Tail rivers in the southeastern corner of North Dakota, about 55 miles south of Fargo near the Minnesota border. The cost of living index is around 75.8, one of the lowest in the state and about 24% below the national average.
The city has a population of around 8,115 and a manufacturing base that runs significantly above state and national averages. Major employers include Bobcat Company, Minn-Dak Farmers Cooperative, WCCO Belting, and the North Dakota State College of Science.
Chahinkapa Park and Zoo is one of the more unexpected amenities in a city this size. The zoo covers 18 acres and houses more than 300 animals across 100 species and six continents, including two white rhinos that arrived in 2018, the only ones in North Dakota.
The Bois de Sioux Golf Course is an 18-hole course within the city. Wahpeton’s manufacturing economy and its proximity to the Fargo-Moorhead metro make it a practical and affordable base for working professionals in trades and industry.
4. Devils Lake, ND
Devils Lake is the county seat of Ramsey County in north-central North Dakota, with a population of around 7,308 and a cost of living index around 80.8, about 19% below the national average. The city sits on the shore of Devils Lake, the largest natural body of water in North Dakota at roughly 165,000 acres, known regionally as the Perch Capital of the World for its walleye, perch, and pike fishing across open water and ice seasons.
CHI St. Alexius Health operates a 25-bed critical access hospital in the city. Spirit Lake Casino on the shores of the lake in nearby St. Michael provides entertainment and dining. For renters whose priority is outdoor recreation centered on water, Devils Lake offers more direct access than any other city on this list, at a cost of living that stays well below the national average year-round.
5. Grafton, ND
Grafton is the county seat of Walsh County in the Red River Valley, with a population of around 4,102 and a cost of living that ranks among the lowest in North Dakota. The city sits in a stretch of the valley known for its agricultural productivity and scenic flatlands, with Icelandic State Park nearby for hiking and outdoor access.
More than four miles of bike paths run through Grafton, and Fair Oaks Golf Course provides a nine-hole option within the city. The Heritage Village Farmers Market runs Tuesday evenings from July through September.
The Strand Twin Theater has served the community for nearly 80 years. Unity Medical Center operates in town for local healthcare needs. Grafton is the smallest community on this list and offers the quietest setting, making it most suited to renters who want low costs and a slower pace above all else.
Considering a Move to Valley City?
Of the towns on this list, Valley City is where we work every day. We manage apartments, townhomes, and single-family homes across the city and can walk you through what the rental market looks like on the ground. Browse our available properties or apply directly.
Frequently Asked Questions
Is North Dakota cheap to live in?
North Dakota’s overall cost of living runs about 9% below the national average. In smaller cities and towns across the state, that gap widens further, with cost of living indexes ranging from the mid-70s to the high-80s in communities like Wahpeton, Grafton, Devils Lake, Jamestown, and Valley City.
What is the most affordable town in North Dakota?
Wahpeton consistently ranks among the lowest cost of living communities in North Dakota, with a cost of living index around 75.8, about 24% below the national average. Grafton also ranks near the top for affordability among small North Dakota towns.
What makes Valley City, ND a good place to rent?
Valley City has a cost of living index around 85, an unemployment rate around 2%, above-average public schools, a violent crime rate about 39% below the national average, and direct access to I-94 about 60 miles west of Fargo. Major employers include Valley City State University, CHI Mercy Health, and Eagle Creek Software Services.
Is North Dakota a safe state to live in?
North Dakota’s violent crime rate runs about 29% below the national average per 2024 FBI data, and its murder rate sits 50% below the national rate. Property crime runs closer to the national average. Valley City specifically has a violent crime rate about 39% below the national average, making it one of the safer communities in an already low-violence state.
What outdoor activities are available in these North Dakota towns?
Valley City has Lake Ashtabula, the Sheyenne River Valley National Scenic Byway, and Medicine Wheel Park. Devils Lake sits on the largest natural body of water in North Dakota. Wahpeton has Chahinkapa Park and the Red River corridor. Jamestown has the Jamestown Reservoir and Pipestem Dam. Grafton has Icelandic State Park and more than four miles of in-city bike paths.