THEY'RE the families that have saved the drought-hit town of Cumnock, in New South Wales Central West.

Eight families have snapped up the nation's cheapest real estate, moving into run-down farmhouses rented for just $1 a week, The Daily Telegraph reports.

They have boosted numbers at the local school by about 30 per cent, allowing a third teacher to be hired, and revived the dying shopping strip.

Since Christmas they have been dusting down cobwebs, creating additional rooms, replacing roof beams, painting walls and tidying their new homes for their tree-change life in the country.

Matt Mercer and his wife Nicole have moved from Victoria with their six children, including new-born Jed.

They're swapping a six-bedroom house in Melbourne's suburbs for a three-bedroom shack on 1ha.

"It will be a big challenge to fit everyone in, but it will be worth it because $1-a-week rent is sensational, you couldn't find better than that," Mr Mercer said.

"I told the landlord I was happy to pay a three-year contract up front."

For Corey and Melissa Campbell, who have four children under the age of 13, moving from nearby Orange wasn't such a big step.

"The kids love their new school and the community has been nothing but welcoming," Mr Campbell said.

"The house needs a lot of work but we'll just take that in our stride."

Lifestyle considerations, the stress of big mortgages and the economic downturn have prompted families from as far away as Western Australia to descend on Cumnock, which has a population of 295.

Read more on The Daily Telegraph online.