The Very 10 Best States for Homesteading

I know that for most of us, the idea of having a homestead of our own is something of a dream. Your own home, your own property, living closer to the land, and being more self-sufficient. And, hopefully, more disconnected from the soul-crushing tedium of modern life in society.

The trick, though, is that you’re still very much connected to society, or rather society is going to connect to you. You’ll still have to deal with laws, regulations, the buying of property, the availability of resources, and of course, the ever-dreaded taxes.

Some states make it easy for homesteaders. Others don’t. To help you avoid a costly and infuriating blunder, I’m bringing you a list of the 10 best states for homesteading below, what you should know about them, and what you should look out for.

Missouri

• Pros: good land still pretty affordable, lots of fertile soil ideal for many crops, strong homesteading community
• Cons: prone to many natural disasters, including floods and tornadoes, best farmland is very expensive, high state income tax
• Avg. Price Per Acre: $5,000 to $9,000 an acre depending on the quality of crop or pasture land.

Missouri can be a great choice for most folks thanks to its relatively mild climate, modest cost of living, and some supremely fertile soil.

Missouri is also quite friendly to homesteaders and has everything from tax exemptions on agricultural land to supportive laws on rainwater harvesting, raw milk sales, small agricultural businesses, and more.

There’s a lot to like, but you’ll need to be careful of the state’s high-income taxes despite its modest taxes in other areas.

Also, many parts of the state have rocky soil that could require considerable preparation to make the most of intensive crop farming, so make sure you get a survey before you pull the trigger on a property.

Luckily, water won’t be an issue: lakes, rivers, streams, and underground aquifers are abundant, meaning you won’t have issues almost anywhere getting water where it needs to go or storing it.

If you can deal with the high taxes and want to maximize returns on intensive farming, Missouri can be a picture-perfect location for your homestead…

Washington

• Pros: eco-friendly incentives for homesteaders, diverse landscapes, extraordinary natural beauty
• Cons: cost of living can be extremely high closer to urban areas, very wet weather, earthquakes, and landslides can be substantial hazards
• Avg. Price Per Acre: pretty expensive, average cost per acre of good farmland in the state is around $7,500, and can go up significantly from there.

Nestled in the heart of the Cascadia region, Washington is known for its extensive natural beauty, eco-conscious laws and initiatives, and unfortunately very high cost of living around major towns and cities.

The good news is that if you want to live farther out in the rural reaches, you’ll find that things are a lot more affordable even though the highest quality farmland is still pretty expensive per acre compared to other states.

Many crops grow extremely well in the fertile soil of Washington valleys, like berries, fruit trees, and especially grapes.

The wet, gray climate might be depressing to some, and can be challenging for crops that don’t thrive in wet conditions, but it means you’ll always be able to supply yourself with water throughout the year.

Most rural areas that aren’t located in the mountains won’t have any trouble drilling a well, either.

Homesteading exemptions allow owners to protect their properties from creditors and other financial crises, and various state and county laws support small-scale farming and sustainable living at the individual level.

If you’re living in and around the mountains, you’ll need to be careful of landslides and mudslides, and earthquakes can be a problem when it comes to major disasters.

If you can stay away from the major cities like Seattle, you’ll find Washington to be charming and quite homestead-friendly.

Texas

• Pros: excellent agricultural incentives, highly adaptable to many types of farming, good solar potential, no state income tax
• Cons: prone to severe storms and tornadoes, drought-prone, high property taxes
• Avg. Price Per Acre: varies considerably depending on the quality of land and location in the state, averages between $2,900 and $7,000.

If there is a state that is synonymous with freedom, most folks would probably say it is Texas. Although it isn’t the freedom-lovers’ paradise that people make it out to be, there’s still a ton to love if you want a homestead of your own.

Texas is a huge state with tons of room and great diversity in terms of climate and biome. No matter what sort of crops you want to grow or what kind of animals you plan on raising, there is a location in Texas that will serve you.

Land is abundant and it is generally affordable, though high-quality land can be expensive as ever. The entire state also has great solar potential for power.

Homeowners will be thrilled to learn that Texas has very strong homestead protection laws on the books that protect the primary residence from foreclosure except under fairly specific circumstances. There’s also no state income tax, though sales tax can be spendy in places, up to 8.25%.

The biggest downside with Texas is that you’ll be highly susceptible to severe thunderstorms, tornadoes, hail, and flooding in most areas.

Drought is always a possibility, meaning water availability is key to your success and that is anything but guaranteed depending on the region…

Some parts of Texas have no water troubles thanks to nearby rivers or substantial underground aquifers, while others are living in drought conditions or near-drought conditions pretty much at all times.

Consider redundant water storage a must-have if you want to make a go of it in Texas, especially if you are living truly off-grid. The possibilities are endless for homesteaders in Texas and it’s well worth your consideration!

Montana

• Pros: vast tracts of unused land, rich natural resources, agriculturally adaptable
• Cons: brutal winters, sparsely populated, land disproportionately expensive in more desirable areas
• Avg. Price Per Acre: anywhere from $1,000 to $4,000 an acre depending on the quality of land and desirability.

Montana is one of the very best homesteading states if you want tons of land and want it for cheap, and if you plan on large-scale farming or cattle ranching.

The modest cost of living and favorable homestead laws should be highly desirable to anyone who is keen to live this lifestyle. The lack of sales tax and modest property and income taxes also make the state a financially attractive proposition.

But with big benefits come some big drawbacks, namely brutally cold winters that can make taking care of tasks and chores on and around the homestead extremely difficult, and in the hardest hit northern ranges even make day-to-day life a legitimate survival situation.

Severe winter weather, flooding in some areas, and occasional wildfires are disasters to watch out for.

You shouldn’t struggle to get water in Montana since it has abundant above and below-ground sources, but know upfront that water rights can get complicated fast, especially with other agricultural properties nearby.

Historic claims can lead to byzantine arrangements considering who has first rights to the water and when.

Something else to keep in mind is that Montana, particularly northern Montana, is very sparsely populated. This is great if you want peace and quiet and like your neighbors at a distance, but when things go wrong and you’re on your own, you will well and truly be on your own.

Nonetheless, if you need lots of land and can withstand harsh winters, Montana might be the best homesteading state for you.

Tennessee

• Pros: no income tax, good agricultural productivity, relatively mild winters
• Cons: summers can be brutal, agricultural pest infestations, poor infrastructure in remotest regions, high crime near urban areas
• Avg. Price Per Acre: decent rural acreages run anywhere from $2,000 to $4,000; the most desirable scenic properties might be considerably higher.

The Volunteer State is a great middle-of-the-road choice for homesteaders. It’s generally a nice place to live with a temperate seasonal climate.

You’ll enjoy a long growing season and, usually, mild winters, but you are properly getting into the South and that means you have humid and oppressively hot summers to look forward to.

The cost of living in Tennessee is generally pretty low, and you won’t have to worry about an income tax and most property taxes are below average to low.

Fertile land is amenable to many different kinds of crops or livestock, particularly corn, but rocky soil is a common problem in the eastern part of the state. Water availability and water rights are perks for homesteaders, as there are rivers and streams everywhere. Tennessee is also friendly when it comes to the catching, storage, and reuse of rainwater.

There are a couple of things to be aware of in Tennessee, namely you’ll always have to worry about flooding, serious thunderstorms and, increasingly over the past few decades, tornadoes.

Experience has shown us that Tennessee is increasingly subjected to serious storm fronts and lots of tornadoes compared to years past, so consider a proper tornado shelter mandatory if you want to make a go of it.

Something else to be concerned about is that infrastructure in the least populated parts of the state tends to be pretty decrepit, and you also have to contend with high overall crime rates the closer you get to the larger urban areas.

Overall, Tennessee can provide you with solid advantages and generally manageable disadvantages, making it a dependable choice for homesteading.

Idaho

• Pros: excellent fertile soil, homesteader-friendly tax incentives, homeschool-friendly
• Cons: winters can be harsh, lots of high taxes, wildfire risk
• Avg. Price Per Acre: around $3,750.

I promise I’ll get through this section without making a single potato joke. But if potatoes, or any other kind of crops, are what you want from your homestead, you’ll be hard-pressed to do better than Idaho.

The state is famous for its extremely fertile and adaptable soil, and there’s almost no kind of veggie, fruit, or other plant that can’t grow there.

The cost of living is lower than the national average, and the state can be attractive for homesteaders particularly because of tax incentives for solar, agriculture, and more. Sadly, this is offset by high property taxes…

Homestead exemptions and legal protection for primary residential properties can afford you up to $100,000 in financial protection against creditors in all but the most extraordinary circumstances.

Idaho also enjoys a very low crime rate throughout, especially in more rural areas.

Something else to consider is that Idaho has dedicated sustainable living communities throughout with an emphasis on low and no waste, ecologically sustainable practices, and other lifestyles that are attractive to folks like you and me.

Despite the beautiful climate of rolling hills, green pastures, and beautiful mountain vistas, you must be prepared for harsh winters, and Idaho has historically suffered terribly from wildfires, something else you need to be prepared for.

Assuming you can cope with the property taxes, Idaho is a real gem for homesteaders. Whether you want a cozy off-grid retreat or a fully functional farming operation, you’re bound to find a property that will do the trick here.

Florida

• Pros: long or year-round growing season, excellent solar potential
• Cons: rapidly growing population, intense natural disaster risk, low natural resources, expensive land
• Avg. Price Per Acre: around $8,200, can easily be much higher for choice property.

Florida is the state that has launched a thousand memes, and with good reason. The Sunshine State is often viewed simultaneously as an idyllic retreat from cold northern weather and the sunniest place for the shadiest people.

Everyone wants to live in Florida, and competition for land within a few miles of the shore on the Gulf or the Atlantic is fierce, and that means expensive.

But if you care to live in the interior of the state or up in the panhandle, you’ll find that it is significantly more affordable, though still expensive, and surprisingly adaptable to agriculture.

You can easily grow tropical fruits in Florida and a lot else, and the warm climate can spare you and your animals from enduring brutal winter weather, though hot, humid summers will be an equal hazard. A nice perk, though, is excellent solar power possibilities.

The trick with homesteading in Florida is getting access to resources, because compared to states like Idaho and Montana, you won’t have much. Water is abundant in Florida, but much of it is of either middling quality or salty.

And, of course, you’ll have to deal with some truly horrendous weather in Florida from time to time: hurricanes have always been and will always be a major hazard and can ravage huge sections of the state at a time for a considerable part of the year. Other than that, garden variety thunderstorms and tornadoes will be a problem.

Mosquitoes will be your constant companions and oppressive heat can make getting things done around the homestead difficult or impossible in the middle of summer.

It’s easy to skip Florida out of hand, but if you stay away from the coasts, you’ll find lots and lots of opportunities for homesteading.

Michigan

• Pros: four-season climate, lots of fertile soil, excellent Right to Farm laws and homestead protections
• Cons: high taxes, higher than average cost of living, short growing season for some crops and veggies
• Avg. Price Per Acre: $4,000 to $4,500.

In some ways, Michigan is the best-kept secret in homesteading. The state already has numerous self-sufficient communities and many other towns and villages that are homestead-friendly throughout.

Most of the soil is quite rich, and the mild four-season climate means you won’t suffer too terribly in either summer or winter unless you are in the northernmost reaches of the state.

Assuming you aren’t growing huge tracts of crops, installing a greenhouse will allow you to keep gardening year-round and take maximum advantage of the soil and otherwise pleasant weather.

Natural resources are also abundant, from trees to water, and the high preponderance of lakes, rivers, and streams means that fishing can be a primary component of provisioning your food stores. Hunting opportunities are also exceptional, especially up north.

The downsides to Michigan are that the state has a significantly higher cost of living compared to most other states on our list and some county and municipal laws concerning property use, water rights, and more can be quite strict.

There are too many to get into here, but you are strongly advised to look into all of them before you commit to purchasing any property, developed or otherwise.

Notably, the state is highly permissive concerning the use of rainwater, but the use of any other water will fall under a plethora of restrictive laws.

The state income tax is 6%, and the property taxes are around 1.24%, and combined with the higher cost of goods and many services, and the lack of jobs in the northern half of the state, means you’ll be spending more just to exist here without running afoul of Uncle Sam.

That said, the state has several Right to Farm laws in place that generally cannot be exempted, so assuming you aren’t running into any zoning issues with your property you should have free rein to grow or raise animals on it.

There’s a lot to like about Michigan, but depending on your resources and your preferences, the short growing season and the higher cost might be a deal breaker.

Maine

• Pros: affordable rural land, strong community traditions of self-sufficiency, excellent forestry and certain agricultural opportunities
• Cons: high property taxes, brutal winters, low population density
• Avg. Price Per Acre: around $2,800.

Maine is famous for beautiful, almost primordial coastlines and of course all the succulent and delicious seafood you can possibly want.

What you might not know is that the state also has a strong tradition of self-sufficiency and amazingly rich soil that is suitable for growing various crops if you can take advantage of the relatively short growing season before harsh winters take hold.

Tomatoes, beans, beets, squash, potatoes, and more are all ideally suited for Maine’s climate and soil.

Water shouldn’t be an issue either since rivers, lakes, and streams are found all over, and the state has generally amicable laws governing water rights and use.

If you want to get back to the basics of living off of the land, you might find plenty of kindred spirits in Maine, especially throughout the rural parts of the state.

Low population density means that people depend on their neighbors more, and that in a jam you might have to take care of business for a time before help arrives. This has truly cultured a population that is strong, capable, and self-sufficient.

If crops really aren’t on your mind, you’ll also be happy to know that there are excellent forestry opportunities if you get a wooded parcel.

A large property might supply you with all the wood you need to take care of all of the construction around the homestead if you’ve got the skills and the equipment!

Regarding natural hazards, flooding, harsh winter weather, and nor’easters are going to be big problems, and after considerable rainfall or snow melt entire areas might become impassable.

Consider a good four-wheel drive and recovery equipment a mandatory investment if you want to make a go of it in rural Maine!

West Virginia

• Pros: excellent homesteading laws and property owner protections, very good soil, very low cost of living
• Cons: the state is devastatingly poor with high poverty, poor infrastructure
• Avg. Price Per Acre: around $3,100.

More than any other state on our list, West Virginia is a study in contrast. The state is truly beautiful, with verdant pastures and hills, mountains, and unmatched natural beauty.

But, the state is also devastatingly poor, and has been subjected to wealth pumping for decades. Much of its infrastructure is decrepit, meaningful jobs are difficult to come by, and there’s a pervasive sense of hopelessness in many areas that you can feel in the air.

That said, property is cheap, the state has good homesteading and agricultural protections for property owners and few invasive laws otherwise, and also excellent soil throughout, meaning you can grow just about anything you want.

Compared to other neighboring states, West Virginia also enjoys relatively mild weather, with the occasional severe storm or tornado being about the only thing you’ll really have to worry about.

Flooding is, as always, a possibility but not a major concern unless your property is located on a floodplain.

There’s also plenty of space in West Virginia, as many residents continue to move out year over year or die off, and if you want to find a sparsely populated community or a truly remote rural area, you won’t have to look very hard.

West Virginia is also notable for its highly permissive residential construction and land use laws: you can build and use damn near any kind of structure you want as long as it adheres to any relevant local regulations.

I wouldn’t expect much in the way of true amenities in West Virginia if I wanted to live on a self-sufficient homestead, but it’s one of the best states for doing it cheaply and also setting yourself up for success with crops and livestock.