If you’re retirement planning for the not-so-distant future, you’ll live on a fixed income. Therefore, you’re looking for a new hometown where you can enjoy life while stretching your dollar to the max.
According to a new GOBankingRates study, 136 U.S. cities were analyzed by combining the average mortgage and average expenditure costs, as well as average home values. The monthly total cost calculated narrowed down the cities where the average monthly cost was equal to or less than $3,500. Looking at the cost of living expenditures for people ages 65 and older each month — e.g., rent, groceries, healthcare costs — you might see that your budget can’t handle passing the $3,500-per-month mark, so you want to make a strategic move.
Thankfully, there are plenty of options around the country to choose from. Whether you’re hoping to move to a city with warmer weather, want to be closer to family or are looking for a tight community with a lot to do now that you have more free time, we found 50 places that will meet your needs.
Ready to start searching for a new place to enjoy your golden years? Keep reading to discover these cities where you can retire for cheap.
50. Verona, Pennsylvania
- Livability Score: 77
- Jan 2024 Avg Home Value: $149,236
- Jan 2024 Avg Mortgage: $885
- Total Expenditures Cost: $1,831
49. Racine, Wisconsin
- Livability Score: 79
- Jan 2024 Avg Home Value: $172,7923
- Jan 2024 Avg Mortgage: $1,024
- Total Expenditures Cost: $1,808
48. Davenport, Iowa
- Livability Score: 78
- Jan 2024 Avg Home Value: $166,915
- Jan 2024 Avg Mortgage: $989
- Total Expenditures Cost: $1,768
47. Urbana, Illinois
- Livability Score: 79
- Jan 2024 Avg Home Value: $170,438
- Jan 2024 Avg Mortgage: $1,010
- Total Expenditures Cost: $1,809
46. Washington, Pennsylvania
- Livability Score: 82
- Jan 2024 Avg Home Value: $206,658
- Jan 2024 Avg Mortgage: $1,225
- Total Expenditures Cost: $1,763
45. Marietta, Ohio
- Livability Score: 79
- Jan 2024 Avg Home Value: $174,780
- Jan 2024 Avg Mortgage: $1,036
- Total Expenditures Cost: $1,760
44. Manitowoc, Wisconsin
- Livability Score: 78
- Jan 2024 Avg Home Value: $189,907
- Jan 2024 Avg Mortgage: $1,126
- Total Expenditures Cost: $1,594
43. Oshkosh, Wisconsin
- Livability Score: 82
- Jan 2024 Avg Home Value: $212,403
- Jan 2024 Avg Mortgage: $1,259
- Total Expenditures Cost: $1,703
42. Belleville, Illinois
- Livability Score: 76
- Jan 2024 Avg Home Value: $131,609
- Jan 2024 Avg Mortgage: $780
- Total Expenditures Cost: $1,812
41. Ambridge, Pennsylvania
- Livability Score: 76
- Jan 2024 Avg Home Value: $124,582
- Jan 2024 Avg Mortgage: $738
- Total Expenditures Cost: $1,853
40. Bloomington, Illinois
- Livability Score: 86
- Jan 2024 Avg Home Value: $233,742
- Jan 2024 Avg Mortgage: $1,385
- Total Expenditures Cost: $1,800
39. Champaign, Illinois
- Livability Score: 83
- Jan 2024 Avg Home Value: $201,204
- Jan 2024 Avg Mortgage: $1,193
- Total Expenditures Cost: $1,808
38. Des Moines, Iowa
- Livability Score: 81
- Jan 2024 Avg Home Value: $191,161
- Jan 2024 Avg Mortgage: $1,133
- Total Expenditures Cost: $1,739
37. Dumas, Texas
- Livability Score: 79
- Jan 2024 Avg Home Value: $164,574
- Jan 2024 Avg Mortgage: $976
- Total Expenditures Cost: $1,766
36. Athens, Ohio
- Livability Score: 82
- Jan 2024 Avg Home Value: $211,665
- Jan 2024 Avg Mortgage: $1,255
- Total Expenditures Cost: $1,668
35. Kaukauna, Wisconsin
- Livability Score: 88
- Jan 2024 Avg Home Value: $262,005
- Jan 2024 Avg Mortgage: $1,553
- Total Expenditures Cost: $1,734
34. Normal, Illinois
- Livability Score: 87
- Jan 2024 Avg Home Value: $231,578
- Jan 2024 Avg Mortgage: $1,373
- Total Expenditures Cost: $1,816
33. Stevens Point, Wisconsin
- Livability Score: 85
- Jan 2024 Avg Home Value: $231,199
- Jan 2024 Avg Mortgage: $1,370
- Total Expenditures Cost: $1,691
32. Fort Wayne, Indiana
- Livability Score: 84
- Jan 2024 Avg Home Value: $217,659
- Jan 2024 Avg Mortgage: $1,290
- Total Expenditures Cost: $1,703
31. Altoona, Pennsylvania
- Livability Score: 76
- Jan 2024 Avg Home Value: $130,807
- Jan 2024 Avg Mortgage: $775
- Total Expenditures Cost: $1,702
30. DuBois, Pennsylvania
- Livability Score: 80
- Jan 2024 Avg Home Value: $152,758
- Jan 2024 Avg Mortgage: $905
- Total Expenditures Cost: $1,813
29. Owensboro, Kentucky
- Livability Score: 84
- Jan 2024 Avg Home Value: $183,622
- Jan 2024 Avg Mortgage: $1,088
- Total Expenditures Cost: $1,854
28. Alliance, Ohio
- Livability Score: 76
- Jan 2024 Avg Home Value: $138,802
- Jan 2024 Avg Mortgage: $823
- Total Expenditures Cost: $1,624
27. Leon, Iowa
- Livability Score: 77
- Jan 2024 Avg Home Value: $106,168
- Jan 2024 Avg Mortgage: $629
- Total Expenditures Cost: $1,875
26. Clawson, Michigan
- Livability Score: 91
- Jan 2024 Avg Home Value: $263,378
- Jan 2024 Avg Mortgage: $1,561
- Total Expenditures Cost: $1,788
25. Austin, Minnesota
- Livability Score: 78
- Jan 2024 Avg Home Value: $159,639
- Jan 2024 Avg Mortgage: $946
- Total Expenditures Cost: $1,601
24. Mount Pleasant, Michigan
- Livability Score: 82
- Jan 2024 Avg Home Value: $189,178
- Jan 2024 Avg Mortgage: $1,121
- Total Expenditures Cost: $1,671
23. Steubenville, Ohio
- Livability Score: 76
- Jan 2024 Avg Home Value: $111,876
- Jan 2024 Avg Mortgage: $663
- Total Expenditures Cost: $1,733
22. Highland Heights, Kentucky
- Livability Score: 87
- Jan 2024 Avg Home Value: $201,204
- Jan 2024 Avg Mortgage: $1,193
- Total Expenditures Cost: $1,852
21. Hutchison, Kansas
- Livability Score: 78
- Jan 2024 Avg Home Value: $125,942
- Jan 2024 Avg Mortgage: $747
- Total Expenditures Cost: $1,739
20. Dubuque, Iowa
- Livability Score: 87
- Jan 2024 Avg Home Value: $213,041
- Jan 2024 Avg Mortgage: $1,263
- Total Expenditures Cost: $1,772
19. Charleston, West Virginia
- Livability Score: 84
- Jan 2024 Avg Home Value: $141,826
- Jan 2024 Avg Mortgage: $841
- Total Expenditures Cost: $1,996
18. Clarksburg, West Virginia
- Livability Score: 79
- Jan 2024 Avg Home Value: $103,893
- Jan 2024 Avg Mortgage: $616
- Total Expenditures Cost: $1,897
17. Bowling Green, Ohio
- Livability Score: 88
- Jan 2024 Avg Home Value: $233,473
- Jan 2024 Avg Mortgage: $1,384
- Total Expenditures Cost: $1,678
16. Huntington, West Virginia
- Livability Score: 81
- Jan 2024 Avg Home Value: $112,482
- Jan 2024 Avg Mortgage: $667
- Total Expenditures Cost: $1,951
15. New Castle, Pennsylvania
- Livability Score: 78
- Jan 2024 Avg Home Value: $128,409
- Jan 2024 Avg Mortgage: $761
- Total Expenditures Cost: $1,656
14. University Heights, Ohio
- Livability Score: 89
- Jan 2024 Avg Home Value: $236,733
- Jan 2024 Avg Mortgage: $1,403
- Total Expenditures Cost: $1,682
13. Fergus Falls, Minnesota
- Livability Score: 81
- Jan 2024 Avg Home Value: $176,633
- Jan 2024 Avg Mortgage: $1,047
- Total Expenditures Cost: $1,544
12. Pampa, Texas
- Livability Score: 76
- Jan 2024 Avg Home Value: $82,516
- Jan 2024 Avg Mortgage: $489
- Total Expenditures Cost: $1,762
11. Erie, Pennsylvania
- Livability Score: 83
- Jan 2024 Avg Home Value: $164,241
- Jan 2024 Avg Mortgage: $974
- Total Expenditures Cost: $1,707
10. Johnstown, Pennsylvania
- Livability Score: 78
- Jan 2024 Avg Home Value: $93,483
- Jan 2024 Avg Mortgage: $554
- Total Expenditures Cost: $1,778
9. Waterloo, Iowa
- Livability Score: 81
- Jan 2024 Avg Home Value: $136,709
- Jan 2024 Avg Mortgage: $810
- Total Expenditures Cost: $1,697
8. Robstown, Texas
- Livability Score: 78
- Jan 2024 Avg Home Value: $84,982
- Jan 2024 Avg Mortgage: $504
- Total Expenditures Cost: $1,791
7. Tiffin, Ohio
- Livability Score: 82
- Jan 2024 Avg Home Value: $162,320
- Jan 2024 Avg Mortgage: $962
- Total Expenditures Cost: $1,550
6. Kent, Ohio
- Livability Score: 89
- Jan 2024 Avg Home Value: $210,890
- Jan 2024 Avg Mortgage: $1,250.
- Total Expenditures Cost: $1,669
5. Wausau, Wisconsin
- Livability Score: 89
- Jan 2024 Avg Home Value: $198,575
- Jan 2024 Avg Mortgage: $1,177
- Total Expenditures Cost: $1,720
4. Akron, Ohio
- Livability Score: 81
- Jan 2024 Avg Home Value: $118,273
- Jan 2024 Avg Mortgage: $701
- Total Expenditures Cost: $1,662
3. Frostburg, Maryland
- Livability Score: 85
- Jan 2024 Avg Home Value: $160,742
- Jan 2024 Avg Mortgage: $953
- Total Expenditures Cost: $1,642
2. Millville, Pennsylvania
- Livability Score: 84
- Jan 2024 Avg Home Value: $115,511
- Jan 2024 Avg Mortgage: $685
- Total Expenditures Cost: $1,838
1. Frankfort, Kentucky
- Livability Score: 91
- Jan 2024 Avg Home Value: $208,073
- Jan 2024 Avg Mortgage: $1,233
- Total Expenditures Cost: $1,694
Jennifer Taylor contributed to the reporting of this article.
Methodology: To find the best cities to retire on $3,500 a month, GOBankingRates analyzed cities cost of living indexes across multiple expenditure categories including; [1] Grocery cost of living index, [2] Healthcare cost of living index, [3] Utilities cost of living index, [4] Transportation cost of living index, [5] Miscellaneous cost of living index all sourced from Sperlings BestPlaces. Each cost of living index was multiplied by it’s [6] national average expenditure category cost for people aged 65 and over as sourced from the Bureau of Labor Statistics 2022 Consumer Expenditure Survey. The total of these expenditures gives the average monthly total expenditure cost for each city. The [7] average single family home value was sourced from Zillow Home Value Index and using the [8] National average 30-year Fixed Rate Mortgage, as sourced from the Federal Reserve Economic Data, the average mortgage can be calculated for each city. Combining the average mortgage and average expenditure costs, the monthly total cost can be calculated and only the cities where the monthly total cost was equal to or less than $3,500 a month were kept. The livability index was found for each city as sourced from AreaVibes. All the places with a livability index below 75 were removed as they represent places with a poor quality of life and do not qualify for this study. All remaining cities are within the affordability for the retirement age range and have a high quality of life. The livability index was scored and weighted at 1.00, the monthly total cost with was scored and weighted at 1.25. The scores were combined and sorted to show the best cities to retire on $3,500 a month. All data was collected and is up to date as of Feb. 28, 2024.