Retirement may bring with it much more leisure time, but that typically comes at the cost of a higher income. Many people try to figure out how to cut costs at this time in life. If you’re not rooted to a specific location, you are free to move to where the living comes cheaply, like the 15 small towns on this list.
For this study, GOBankingRates considered small towns with populations of between 1,000 and 5,000, where you can retire on a budget of $2,300 or less, using data from the US Census American Community Survey, Zillow and the Bureau of Labor Statistics’ Consumer Expenditure Survey. We then added average mortgage and average monthly expenditures together to find where a person 65 and older could get by on the $2,300 budget.Equally important was a city’s livability score — the cities on this list had to have a score of 65 or higher as sourced from AreaVibes. Kansas and Minnesota had the most cities on this list. Keep reading to find out just how little it costs to live in these small towns.
15. Cumberland, Kentucky
- Average monthly mortgage: $319
- Total monthly expenditures: $2,020
- Livability score: 65
14. Crossett, Arkansas
- Average monthly mortgage: $516
- Total monthly expenditures: $2,141
- Livability score: 66
13. Corning, Arkansas
- Average monthly mortgage: $542
- Total monthly expenditures: $2,213
- Livability score: 68
12. Ozona, Texas
- Average monthly mortgage: $468
- Total monthly expenditures: $2,295
- Livability score: 73
11. Medicine Lodge, Kansas
- Average monthly mortgage: $471
- Total monthly expenditures: $2,209
- Livability score: 71
10. Tracy, Minnesota
- Average monthly mortgage: $714
- Total monthly expenditures: $2,272
- Livability score: 77
9. Hoisington, Kansas
- Average monthly mortgage: $505
- Monthly expenditures: $2,220
- Livability: 77
8. Caney, Kansas
- Average rent for 1-bedroom: $445
- Monthly expenditures: $2,148
- Livability score: 71
7. Tyler, Minnesota
- Average monthly mortgage: $708
- Monthly expenditures: $2,290
- Livability score: 73
6. Falfurrias, Texas
- Average monthly mortgage: $359
- Total monthly expenditures: $2,052
- Livability score: 73
5. Belleville, Kansas
- Average monthly mortgage: $528
- Total monthly expenditures: $2,258
- Livability score: 77
4. Augusta, Arkansas
- Average monthly mortgage: $2,010
- Total monthly expenditures: $398
- Livability score: 66
3. Smith Center, Kansas
- Average monthly mortgage: $2,214
- Total monthly expenditures: $517
- Livability score: 72
2. New Rockford, North Dakota
- Average monthly mortgage: $527
- Total monthly expenditures: $2,216
- Livability score: 74
1. Wheaton, Minnesota
- Average monthly mortgage: $642
- Total monthly expenditures: $2,187
- Livability score: 72
Jordan Rosenfeld and Jami Farkas contributed to the reporting of this article.
Photo Disclaimer: Please note photos are for representational purposes only. As a result, some of the photos might feature the nearest big city to the locations listed in this article.
Methodology: For this study, GOBankingRates found the best small towns to retire on $2,300 a month. First GOBankingRates found small towns in the United States with a population between 1,000 and 5,000 from the US Census American Community Survey along with the total population and population aged 65 and over. Using this data the percent of population aged 65 was calculated. For each city the cost of living indexes were sourced from Sperlings BestPlaces. Using the average expenditure costs for retired residents, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey for retired residents, the average monthly expenditure costs can be calculated. Using the Zillow Home Value index, the average single family home value from June 2024 can be found. By assuming a 10% down payment and using the national average 30-year fixed mortgage rate, the average mortgage cost can be calculated. Using the average mortgage and average expenditure cost, the total monthly cost of living for retired residents can be calculated. All locations over $2,300 a month were removed for this study. To qualify for this study the percent population had to be at least 15%, the liability index has to be at least 65 and the population had to be between 1,000 and 5,000. This ensures the location has quality data, has a high quality of life, and facilities retired residents would need. The livability index was sourced from AreaVibes, scored, and weighted at 1.00. The percent population aged 65+ was scored and weighted at 1.00. The monthly average expenditure costs for retired residents was scored and weighted at 1.00. The monthly average mortgage cost was scored and weighted at 1.00. All the scores were combined and sorted to show the best places to retire on $2,300 a month. All data was collected on and is up to date as of July 17th, 2024.