Most Affordable States for Senior Care

In recent years, the U.S. has experienced an increase in its cost of living, with inflation rising by 3% at the start of 2025 and prices estimated to be 23.7% more expensive today than they were pre-pandemic. 

As the cost of living rises, families across the U.S. are increasingly looking for ways to afford quality care for their aging loved ones. Pew Research reports an estimated 62 million Americans are aged 65 and over, which accounts for 18% of the population. This is expected to rise to 23% within 30 years, intensifying the national demand for accessible and affordable senior care.

Whether you’re looking into assisted living, home care services, or medical expenses, senior care can place a significant financial strain on households (you can find deeper insights on financial strain within our Caregiver Burnout Report). The growing economic concern may be nationwide, but not all states contribute equally to the financial strain – some U.S. states are faring better than others. So, which states offer the best value for senior care?

To reveal the most affordable states for senior care, we’ve examined several factors, including the cost of assisted living, home care, and more. Please note that home care, or home health care, is different from in-home care; the latter is nonmedical. This study refers to the cost of skilled nursing services in the home, often provided by home health aides.

1. Mississippi

Senior Care Score: 8.98/10

Mississippi is the most affordable state in the U.S. for senior care, scoring 8.98 out of 10. This Southern state has one of the least expensive annual assisted living costs ($53,343), coming just behind South Dakota. 

Mississippi also provides reputable home care services and is a great option for seniors seeking home health services at a more affordable price. The state's annual median home care costs $57,200, in joint second place with Alabama. Not only does it offer a relatively decent median Medicaid spending of $7,029/enrollee, but Mississippi’s median annual cost for a private nursing home room is $118,625, 7% lower than the national median ($127,750).

 

2. Texas

Senior Care Score: 8.41/10

Texas ranks second, with a score of 8.41 out of 10. Texas also offers the lowest median cost for a private room in a nursing home at $85,045/year. In comparison, the same care costs nearly twice as much in other major states like New York ($186,698/year) and California ($182,135/year).

With a relatively high Medicaid spending of $9,637/enrollee, Texas helps provide health coverage to eligible individuals such as low-income adults, seniors, and those with disabilities, at least as of June 2025. This enables the state to support more senior residents, providing more comprehensive services like personal care, assisted living, and nursing home care. Additionally, Texas is among the top 10 most affordable states for home health care costs, with an annual median of $68,640. 

 

3. Arkansas

Senior Care Score: 8.21/10

Arkansas completes the top three states with the most affordable senior care, earning a score of 8.21 out of 10. The state stands out for offering attentive care services and a supportive environment that promotes well-being and independence for older adults. 

Arkansas is among the top five most affordable states for home care, costing a median of $59,488 /year. The state is also one of the country's top 10 most cost-effective assisted living states, with a median annual cost of $56,688. 

South Dakota 

Average Annual Cost: $52,200

South Dakota is the most affordable state for assisted living, with a median annual cost of $52,200, which is lower than the national median of $70,800. Alongside offering the best value-assisted living costs of any U.S. state, it also provides home and community-based services such as the HOPE Waiver. This statewide Medicaid program for seniors aged 65+ offers various long-term care benefits and assistance to enable seniors to live as independently as possible. 

Louisiana

Average Annual Cost: $50,336

Louisiana is the most attractive option for families looking for cost-effective home care solutions in the U.S., with a median cost of $50,336. Interestingly, while home health aide costs rose by 3% nationally in 2024, Louisiana experienced a 10% decrease in costs.

Texas

Average Annual Cost: $85,045

Texas is the most cost-effective state for a private nursing home room, as opposed to a semi-private room with one roommate. Private Texas nursing home rooms carry a median annual cost of $85,045/room. 

The Lone Star State remains approximately 33% more affordable than the national median, which increased by 9% to $127,750/year from 2023 to 2024, offering significant savings for families statewide. By comparison, neighboring states like Oklahoma and Louisiana report median annual costs of $91,250, making Texas a clear outlier in affordability within the region.

North Dakota

Average Annual Cost: $13,097

North Dakota allocates more Medicaid spending than any other U.S. state, with a median annual cost of $13,097/enrollee. The state provides many benefits for its senior recipients by investing in health care services. For instance, such funding allows for better access to home and community-based services (HCBS), which can help enhance quality of life while reducing the need for institutional care. 

Planning for senior care can be overwhelming, especially with rising costs and a wide range of care options. Whether caring for a loved one or preparing ahead for your own future, it is important to make an informed decision. To help you get started, keep these tips in mind.

When it comes to senior care, planning well ahead and budgeting is key. This proactive approach provides more options and financial flexibility in the long term, allowing for a smoother transition and giving the individual and their loved ones peace of mind. 

During the planning process, consider factors such as evaluating your senior loved one’s current capabilities and level of independence. Take into account their health conditions and how this might potentially impact future care.

Finding the best type of care for your loved one is very important, as it can affect their level of independence and quality of life. Therefore, researching and understanding the different types of care available can help make a more informed decision. 

The cost of care varies greatly depending on the type of services provided. For example, home care focuses more on nonmedical assistance at home, while home health care involves medical care. Other options to consider include assisted living and nursing homes. Understanding the varying levels of care can help prevent you from overpaying for unnecessary services.

When navigating the cost of senior care, looking into state and federal programs can be very beneficial. Several states offer supportive services and programs for seniors, such as Medicaid waivers, Veterans’ benefits, and PACE programs (Program of All-Inclusive Care for the Elderly), which can help ease the burden on a senior’s caregiver finances.

States like Arkansas offer a Living Choices Waiver, while New York provides extensive funding for aging services and adult day care, also known as Managed Long-Term Care (MLTC). Depending on eligibility, these options can significantly offset senior care costs.

Comparing different facilities and service providers is essential to ensure you find an affordable option that offers good quality care at a better value. It is also worth considering whether public or private senior care is preferred, as costs for these vary greatly. 

Taxes typically fund public care and aim to provide medical assistance to seniors, often coming at a lower cost. On the other hand, private care is usually financed through private insurance. Although it often offers quicker access to health services and specialists, this also means out-of-pocket payments. 

To determine the most affordable state for senior care, we used CareScout (2024) to gather data on the following factors using the cost of care calculator: 

 

• Annual Median Cost of Assisted Living (Assisted living community). 
• Annual Median Cost of Home Care (Home health aide)
• Annual Median cost of nursing home care (Private room). 

 

CareScout uses median figures in its senior care data. This is not to be confused with average; medians are the middle numbers in an ordered data set, whereas an average is the number resulting from adding all the numbers in a data set together and dividing that total by the number of entries in the set.

The salary figures for home health and personal care aides were taken from the U.S. Bureau of Labor Statistics’ Occupational Employment and Wage Statistics. This data was collected using the “Annual median wage” by state as of May 2024. 

To determine Medicaid spending per enrollee, we used the Medicaid and CHIP Scorecard (2022), which specifically examines the per capita expenditures for each state, which are listed as median figures. 

Once we collected data on each of these factors, we gave each state a normalized score out of ten for each factor using a weighted ranking system. We then created an overall average score out of 10 by taking an average across all factors. 

 This data is correct as of May 2025.

• Cost of care survey. (2024). CareScout 
• Living choices. Arkansas Department of Human Services 
• Foster, Sarah. (2025) Inflation fell last month, but prices remain high — here’s what’s rising most. Bankrate
• Long-Term care costs increase in Mississippi, remain lower than national costs (2025). CareScout
• Schaeffer, Katherine. (2024). U.S. centenarian population is projected to quadruple over the next 30 years. Pew Research Center 
• Sherman, Natalie, et al. (2025). US inflation unexpectedly increases. BBC 
• South Dakota Medicaid Home & Community Based Options and Person Centered Excellence (HOPE) Waiver (2025). American Council on Aging