Thinking of Going Off-Grid? These Are the 10 Best States for Homesteading

Homesteading offers a beautiful lifestyle rooted in sustainable living, while reclaiming your independence, simplifying life, and building something truly your own.

However, if you’re considering going off-grid, you’ll also need to find the best states for homesteading, as each has its own land laws, taxes, and community attitudes to support or complicate your goals. 

Key Considerations for Homesteading

Treat homesteading as a lifestyle shift that places self-reliance at the center of daily living. It involves growing your own food, generating your own energy, and learning to live with fewer dependencies. But before starting your research, try to understand the “why” behind the move.

Are you seeking more freedom? A more profound connection with nature? An escape from rising living costs?

The clearer you answer, the easier it becomes to choose the best states for homesteading that align with your values. Otherwise, romanticizing the idea and overlooking the effort required to make it work can make the process much more challenging. And just like with any significant real estate decision, taking time for proper due diligence before purchasing land will help you avoid zoning, access, or utility issues down the line.

10 Best States For Homesteading

Disclaimer: There’s no one-size-fits-all answer to the question “What is the best state to homestead in?”

The ideal state depends on your lifestyle priorities, whether that is personal fulfillment, a calmer and more isolated living experience, or becoming an active community member. 

1. Tennessee

Tennessee has one of the most homesteader-friendly laws in the U.S., with no state income tax and relatively mild zoning regulations in rural areas. DIY construction is easier here, but you may still need specific permits to initiate construction. 

Climate and Natural Resources

With a moderate climate, long growing season, and ample rainfall, Tennessee is excellent for gardening and small-scale farming. Fertile soil and access to water make self-sufficiency more attainable in this region.

Pros

• Affordable rural land
• Supportive homesteading communities
• Long growing season

Cons

• High humidity in summer
• Tornado risk in some areas

2. Idaho

Idaho is among the best states for homesteading thanks to its flexible land-use laws and support for independent living. The state has a $30 million water conservation grant program designed to help farmers and landowners develop more efficient irrigation systems and protect their long-term water resources.

Homeschooling and alternative building practices are also widely accepted, making it a strong choice for families seeking autonomy.

Climate and Natural Resources

Idaho boasts a vast agricultural potential, offering its residents fertile valleys, mountainous areas, and access to clean water sources. While winters in the north can be long and cold, southern regions benefit from milder conditions and longer growing seasons. 

Pros

• Abundant farmland and natural beauty
• Strong agricultural infrastructure and support
• New water conservation incentives for landowners

Cons

• Harsh winters in northern regions
• Wildfire risk during dry months

3. Michigan

Michigan offers some solid protections for homesteaders. The homestead exemption can protect up to $46,125 of your home value from creditors, with higher limits for seniors and disabled individuals. You can also benefit from off-grid setups in rural areas and explore farming and construction opportunities.

Climate and Natural Resources

Thanks to the Great Lakes, Michigan is rich in freshwater and forest land, providing homesteaders with a decent growing season. Nature itself supports a variety of crops and livestock farming.

Pros

• Abundant freshwater
• Affordable property prices in rural areas
• Access to natural resources

Cons

• Cold, snowy winters
• Some areas may have outdated infrastructure

4. Wyoming

Wyoming’s sparse population means fewer restrictions and more space to breathe. While there’s no official homestead exemption, many rural counties go easy on land use laws. Living off-grid is not just allowed; it’s quite standard in many places.

Climate and Natural Resources

Wyoming’s terrain is a mix of rugged mountains and dry high plains. You may still face water issues in certain areas, so consider having a nearby stream to support you.

Pros

• Tons of space and personal freedom
• No state income tax
• Livestock-friendly open range laws

Cons

• Dry conditions and water scarcity
• Big swings in temperature and wind

5. Montana

Montana has a long agricultural tradition, and its laws reflect that. Rural counties tend to offer zoning flexibility, and the state’s homestead exemption protects up to $409,450 of home equity. Off-grid setups are typical, especially outside the more urban parts of the state.

Climate and Natural Resources

Postcard-worthy views make Montana an ideal spot among homesteading states. Western Montana has a gentler climate, while eastern areas can swing from icy winters to hot summers.

Pros

• Wide-open land and stunning scenery
• Strong farming roots and tight-knit communities
• No state sales tax

Cons

• The weather can be unpredictable
• Some areas have short growing seasons

6. Alaska

Alaska is one of the few states that still echoes the original spirit of homesteading. The state offers relatively beneficial remote land lease programs and incentives that support independent living. 

Climate and Natural Resources

The subarctic and arctic climates may limit the growing season for a few months. Nevertheless, Alaska is an incredible place with an abundance of natural resources. The freshwater, fish, and vast stretches of forested land make it an ideal place for homesteaders looking for a unique place to settle.

Pros

• True off-grid freedom
• Access to raw natural resources
• Minimal land use restrictions

Cons

• Harsh winters in isolation
• Expensive supply chains and utilities

7. Arizona

Arizona allows considerable freedom for off-grid living, especially in counties like Cochise or Apache. The state offers a $400,000 homestead exemption and even supports rainwater harvesting. The conditions are favorable for tiny homes, alternative housing, and solar power setups.

Climate and Natural Resources

Arizona’s warm climate allows for year-round growing in certain areas. However, be ready to face water scarcity challenges due to hot weather and solar abundance.

Pros

• Strong solar energy potential
• Mild winters
• Friendly zoning in many rural counties

Cons

• Water rights are complex
• It can be extremely hot in summer

8. Kentucky

Kentucky is among the best states for homesteading thanks to its relatively low property taxes and affordable rural land. People who are at least 65 years old or have a disability can receive a rather appealing homestead exemption. Moreover, most rural counties provide beneficial conditions for self-built homes and agricultural activity.

Climate and Natural Resources

The four distinct seasons and fertile soil make Kentucky an ideal place for gardening, farming, and livestock. The natural resources support sustainable living and make it easier to go off-grid with a low initial investment.

Pros

• Fertile land and mild climate
• Low property prices and taxes
• Accessible water and timber

Cons

• Humidity and pests in warmer months
• Limited off-grid community networks compared to other states

9. Oregon

Building codes and local regulations may vary in Oregon, but certain areas, including Wasco County, Curry County, and Harney County, are known for their off-grid-friendly policies. This is one of those progressive states that strongly encourage sustainable agriculture and permaculture farming.

Climate and Natural Resources

Thanks to its mild temperatures and abundance of natural resources, Oregon has all the potential to become the best state to homestead. With forests, rivers, and abundant wildlife, Oregon is a good choice for people looking for self-reliance and biodiversity.

Pros

• Strong culture of sustainability
• Favorable growing conditions in many areas
• Access to natural resources and alternative communities

Cons

• High land prices near metro areas
• Regulatory challenges in urban-adjacent counties

10. Missouri

Last but not least, Missouri is among the best states for homesteading, thanks to its agricultural and freedom-oriented policies. The state’s homestead exemption is modest but present, and land ownership is relatively accessible for most budgets. More budget-conscious homesteaders can even opt for creative financing methods, like buying foreclosed homes with no money down.

Climate and Natural Resources

With a temperate climate and diverse terrain, Missouri homesteaders get access to high-quality soil that supports everything from livestock to large-scale gardens. However, occasional tornadoes can still pose a threat to your calm living.

Pros

• Affordable and agriculturally rich land
• Friendly regulations and strong farming heritage
• Water access through rivers and rainfall

 Cons

• Weather extremes, including tornadoes
• Humidity can be challenging in summer

Before You Take the Step

Becoming a homesteader is a profoundly personal decision shaped by values and long-term life goals. Define what’s best for your expectations before starting your search for the best states for homesteading. Considering factors like legal factors, tax incentives, and even LLC forming regulations can help you get prepared mentally, physically, and financially for the kind of lifestyle you’re aiming for. 

As more people seek alternatives to high-cost urban living, the appeal of homesteading will likely continue to grow. The proper planning and clarity of purpose will make your dream come true.

FAQ

What States Allow Homesteading in the U.S.?

Nearly every state in the U.S. allows some form of homesteading, yet you need to study carefully the unique specifics that vary from area to area. States like Tennessee and Idaho are more supportive of off-grid living, providing available land and a hands-off approach for homesteaders. Others may have stricter permits or zoning compliance in near-urban centers. So, before buying land, it’s important to research local ordinances and county regulations.

What’s the Difference Between a Homestead Exemption and Homesteading?

The two terms may seem similar, but each refers to entirely different ideas. Homesteading is a lifestylethat involves practicing self-sufficiencyy. You typically go off-grid, grow your own food, start generating power from natural resources, and live with minimal reliance on public utilities.

On the other hand, a homestead exemption refers to a legal provision protecting a portion of your home value from property taxes or creditors. States like Florida and Texas have such protections, making them appealing to long-term landowners. 

Is Homesteading Legal in Every State?

Yes, homesteading is legal across the U.S., although the Homestead Act, which allowed for the free acquisition of federal land for private ownership, is no longer active. Homesteading has become a lifestyle for many thanks to state governments and county-level policies. Study zoning codes, building regulations, and water rights before choosing a homesteading state to find the most convenient place for you.

Do You Need a Lot of Money to Start Homesteading?

Not necessarily, but you do need a solid plan. Consider the upfront costs that include land, tools, and infrastructure expenses, especially if you’re starting homesteading from scratch. Some homesteaders look into buying foreclosed homes with no money down or lease-to-own land deals, especially in less developed counties. Such creative financing options are a good start, but they may also require physical labor and time investment to make the land livable.