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50 Best Cities To Retire on $3,500 a Month

August 14, 2024

8 min Read

Written by J. Arky

Edited by Katie Wudel

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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

Today’s Top Offers

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

Today’s Top Offers

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

Today’s Top Offers

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

Today’s Top Offers

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.

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