Arizona or Texas. Texas is really cheap. You can compare here: http://www.cityrating.com/costofliving.a��
Virginia is man cheap and quite hot.It has good high schools, Virginia Beach and Alexandria are in the top ten lists to live in.It is the closest to the capital and also has the 2nd oldest university in usa.(William and Mary)It was also the best state of the year in buisness matters.
Arizona
Catalina Island located near California.
The southern half of Texas should qualify. If you do not mind 107F in May. El Paso is quite cheap to live in.