According to the Census Bureau the poverty rate of New Mexico or Mississippi drops by more than three percent when you factor in cost of living, household unit

According to the Census Bureau the poverty rate of New Mexico or Mississippi drops by more than three percent when you factor in cost of living, household unit sizes, poverty alleviation programs, and other things. With that in mind, the answer seems to be that in twenty-five states the straightforward calculation based on income exaggerates real poverty. You'll find aggregate numbers, and methodological details, at the link above. I hope that answers your question.