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18 Inches from the bolt face to the end of the barrel is as short as you can go without running afoul of the 1934 National Firearms Act (assuming overall length remains over 26 inches).
If your own state requires a 21 inch barrel, then go with 21 inches. Three inches won't make the difference between a gun that maneuvers easily and one that feels like a telephone pole. Breaking the law and hoping you don't get caught is an extremely bad idea. Even though it may not be what turns a "good shoot" into a "bad shoot," they can and probably will charge you with possession of an illegal firearm. The result is usually not a fine or probation. Generally possession of a firearm in an illegal configuration is treated as though you had active plans to murder everybody in your vicinity, and you will likely be looking at a few years of prison time from a felony conviction (complete with loss of firearms rights). If you go shorter than 18" and you're caught, then you're talking a federal matter that will probably mean 10 years in prison.
FOLLOW THE LAW IN YOUR JURISDICTION.
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