10 Best Cities in the Midwest To Retire on $2,000 a Month

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10 Best Cities in the Midwest To Retire on $2,000 a Month

At long last, you’re finally ready to retire in the Midwest. You’re looking for a new hometown with plenty of other retirees that will also allow you to live comfortably on a fixed income.
As of 2020, the median household income was $64,994, according to the U.S. Census Bureau. Whether you fall above or below this number, spending around $2,000 per month on living expenses in the Midwest is doable.
See: Best Cities To Retire on a Budget of $1,500 a Month
Find Out: 15 Cheap, Beautiful Places To Retire
GOBankingRates conducted a study to learn more about the cost of living and the size of the retiree population in several Midwestern cities. We then compared our findings with the U.S. average to determine which cities are best for retirement on a $2,000 per month budget.
A crucial benchmark that was considered, 16% of the population of the average U.S. city is 65 years old and up. Grocery expenses were another main focus, with the average annual cost in the U.S. totaling $4,942 — $411.83 per month. Of course, healthcare costs were also a major consideration, with the U.S. average totaling $5,177 per year — $431.42 annually.
It’s worth noting that Mishawaka, Indiana, had the lowest monthly healthcare costs and one of the lowest monthly grocery costs, but still didn’t make the top 10. Also interesting, Papillion, Nebraska, had the highest livability score of all 25 cities on the list — 93 — but served as the most expensive spot.
Ready to find out which Midwest cities are the best for retirees? Here’s a look at the top 10.
10. Sioux Falls, South Dakota
- 2022 one-bedroom rent: $846.33
- Percent of population 65 and older: 13%
- Livability: 70
- Annual grocery cost: $4,946.94
- Monthly grocery cost: $412.25
- Annual healthcare cost: $4,742.13
- Monthly healthcare cost: $395.18
- Monthly expenditures: $1,653.76
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9. Indianapolis
- 2022 one-bedroom rent: $889.33
- Percent of population 65 and older: 14%
- Livability: 65
- Annual grocery cost: $4,625.71
- Monthly grocery cost: $385.48
- Annual healthcare cost: $4,493.64
- Monthly healthcare cost: $374.47
- Monthly expenditures: $1,649.28
8. Parma Heights, Ohio
- 2022 one-bedroom rent: $889.17
- Percent of population 65 and older: 20%
- Livability: 76
- Annual grocery cost: $4,783.86
- Monthly grocery cost: $398.65
- Annual healthcare cost: $4,265.85
- Monthly healthcare cost: $355.49
- Monthly expenditures: $1,643.31
Photo Disclaimer: Photo is of Cleveland, which is 11 miles northeast of Parma Heights.
7. Dearborn, Michigan
- 2022 one-bedroom rent: $850.17
- Percent of population 65 and older: 13%
- Livability: 75
- Annual grocery cost: $4,699.84
- Monthly grocery cost: $391.65
- Annual healthcare cost: $4,364.21
- Monthly healthcare cost: $363.68
- Monthly expenditures: $1,605.50
6. Cincinnati
- 2022 one-bedroom rent: $795
- Percent of population 65 and older: 15%
- Livability: 68
- Annual grocery cost: $4,823.39
- Monthly grocery cost: $401.95
- Annual healthcare cost: $4,421.16
- Monthly healthcare cost: $368.43
- Monthly expenditures: $1,565.38
5. Fort Wayne, Indiana
- 2022 one-bedroom rent: $844.33
- Percent of population 65 and older: 15%
- Livability: 75
- Annual grocery cost: $4,516.99
- Monthly grocery cost: $376.42
- Annual healthcare cost: $4,126.07
- Monthly healthcare cost: $343.84
- Monthly expenditures: $1,564.59
4. Jeffersonville, Indiana
- 2022 one-bedroom rent: $811.83
- Percent of population 65 and older: 16%
- Livability: 75
- Annual grocery cost: $4,640.54
- Monthly grocery cost: $386.71
- Annual healthcare cost: $4,302.09
- Monthly healthcare cost: $358.51
- Monthly expenditures: $1,557.05
3. Fargo, North Dakota
- 2022 one-bedroom rent: $765.33
- Percent of population 65 and older: 12%
- Livability: 76
- Annual grocery cost: $4,917.29
- Monthly grocery cost: $409.77
- Annual healthcare cost: $4,426.34
- Monthly healthcare cost: $368.86
- Monthly expenditures: $1,543.97
2. Lansing, Michigan
- 2022 one-bedroom rent: $795
- Percent of population 65 and older: 16%
- Livability: 66
- Annual grocery cost: $4,502.16
- Monthly grocery cost: $375.18
- Annual healthcare cost: $4,327.97
- Monthly healthcare cost: $360.66
- Monthly expenditures: $1,530.84
1. Grand Forks, North Dakota
- 2022 one-bedroom rent: $670.67
- Percent of population 65 and older: 13%
- Livability: 74
- Annual grocery cost: $4,912.35
- Monthly grocery cost: $409.36
- Annual healthcare cost: $4,985.45
- Monthly healthcare cost: $415.45
- Monthly expenditures: $1,495.48
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Methodology: To find the best Midwest cities to retire on a monthly budget of $2,000 or less, GOBankingRates first used ApartmentList’s data to find (1) average 2022 rent in Midwest cities. GOBankingRates then used Sperling’s Best to find the cost of living index for each selected city, looking at (2) grocery and (3) healthcare index scores.
Next, GOBankingRates used data from the Bureau of Labor Statistics 2020 Consumer Expenditure Survey to find the annual expenditure amount for both grocery (“food at home”) and healthcare costs for people aged 65 and older, to determine how much a person 65 and over would spend on groceries and healthcare in each city monthly. GOBankingRates then added monthly housing, grocery and healthcare costs together to find where in the Midwest a person 65 and older could survive on $2,000 or less.
For a city to qualify for the study, its population had to be 10% or more over the age of 65, (4) according to the Census Bureau’s 2020 American Community Survey and (5) needed a livability score of 65 or above, as sourced from AreaVibes. All data was collected on and up to date as of July 1, 2022.
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