10 Midwest Cities Where You Should Retire — It Costs $3,000 or Less Per Month

There’s good news if you’re anticipating being on a budget during your retirement years. An in-house study from GOBankingRates has identified 25 Midwest cities as the most affordable for retiring on $3,000 or less monthly. From this list, we pulled the 10 cheapest Midwestern cities for retirement where the average monthly cost of living is under $2,650 — and that’s before Social Security benefits kick in.

From most to least expensive, see which 10 Midwestern cities you can retire in and spend $3,000 or less each month.

• Livability score: 79
• Average monthly mortgage: $879
• Average monthly cost of living (not including housing): $1,769
• Average monthly cost of living for homeowner before Social Security: $2,649

• Livability score: 79
• Average monthly mortgage: $835
• Average monthly cost of living (not including housing): $1,810
• Average monthly cost of living for homeowner before Social Security: $2,645

• Livability score: 79
• Average monthly mortgage: $871
• Average monthly cost of living (not including housing): $1,767
• Average monthly cost of living for homeowner before Social Security: $2,637

• Livability score: 79
• Average monthly mortgage: $907
• Average monthly cost of living (not including housing): $1,729
• Average monthly cost of living for homeowner before Social Security: $2,636

• Livability score: 79
• Average monthly mortgage: $783
• Average monthly cost of living (not including housing): $1,835
• Average monthly cost of living for homeowner before Social Security: $2,618

• Livability score: 79
• Average monthly mortgage: $593
• Average monthly cost of living (not including housing): $2,019
• Average monthly cost of living for homeowner before Social Security: $2,612

• Livability score: 79
• Average monthly mortgage: $612
• Average monthly cost of living (not including housing): $1,943
• Average monthly cost of living for homeowner before Social Security: $2,555

• Livability score: 79
• Average monthly mortgage: $624
• Average monthly cost of living (not including housing): $1,880
• Average monthly cost of living for homeowner before Social Security: $2,503

• Livability score: 79
• Average monthly mortgage: $742
• Average monthly cost of living (not including housing): $1,733
• Average monthly cost of living for homeowner before Social Security: $2,475

• Livability score: 79
• Average monthly mortgage: $565
• Average monthly cost of living (not including housing): $1,768
• Average monthly cost of living for homeowner before Social Security: $2,333

Find more original studies and surveys in the GOBankingRates original research center.

Photo disclaimer: Photos are for illustrative purposes only. In many cases, the closest major city outside of the city/county mentioned in the article was used.

Methodology: For this study, GOBankingRates analyzed cities across the United States to find the best places to retire for under $3,000 a month. First GOBankingRates used the U.S. Census American Community Survey to find cities and basic information including total population, households, household median income and population ages 65-plus. The cost-of-living indexes were sourced from Sperling’s BestPlaces and include the grocery, healthcare, housing, utilities, transportation and miscellaneous cost of living. Using the cost-of-living indexes and the national average expenditure costs, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure cost for each location was calculated. The average single-family home value and the average rental cost was sourced from Zillow Home Value Index and Zillow Observed Value Index for December 2024. Using the average home value, assuming a 10% down payment, and using the most recent national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage was calculated. Using the average mortgage, rental costs and expenditure costs, the average cost of living for homeowners and renters was calculated. Livability indexes were sourced from AreaVibes and included to determine the quality of life for each location. The average Social Security benefits were sourced from the Social Security Administration and used to calculate the cost of living for homeowners and renters after Social Security. The cities were sorted to show the highest livability locations first. All data was collected on and is up to date as of Jan. 30, 2025.