18 Best Southern Cities To Retire on a Budget of $3,000 a Month

Southern cities are an attractive place to retire for their warm climates, great hospitality and attractions and amenities rooted in natural beauty and historical significance. However, many retirees are also drawn to the South because it’s easier to find a city that’s affordable on a fixed income.

As of January 2024, the average monthly Social Security payment is $1,866 for a single person aged 65 or up, according to the Social Security Administration. That’s less than the cost of the average one-bedroom apartment in the U.S. as of March 2024, which is around $1,987, according to Rent.com.

Housing isn’t the only expense you need to think about, though it often takes a significant bite out of one’s monthly budget. Once you have your living situation dialed in, it can be easier to budget for your other monthly expenses.

In addition to affordability, it’s also important to choose a Southern town with a sizable population aged 65 and older, both for social reasons and to know that you live in a town that supports its older residents.

Here are the best Southern cities to retire in if you have a lower budget of $3,000 a month or so.

• Monthly expenditures: $2,966 
• Percent of population 65 and older: 14.2%
• Livability: 85

In Covington, where the population is 40,923, the livability is a solid 85. The median household income is $53,770. Overall monthly expenditures barely squeak in under $3,000. 

• Monthly expenditures: $2,326 
• Percent of population 65 and older: 24.6%
• Livability: 79

Robstown’s median household income is on the low side, around $35,491. Fortunately, monthly expenditures are only $2,326, and it has the lowest average monthly mortgage on this list at $545 per month.

• Monthly expenditures: $2,509 
• Percent of population 65 and older: 23.7%
• Livability: 78

In Cumberland, which has a decently sized population of adults aged 65 and older, the median household income is $45,915.

• Monthly expenditures: $2,305 
• Percent of population 65 and older: 16.1%
• Livability: 76

Pampa is one of six Texas towns on this list. It has the second lowest average monthly mortgage payment, at $550 per month, and a median household income of almost $53,000.

• Monthly expenditures: $2,838 
• Percent of population 65 and older: 12.3%
• Livability: 79

Brownsville is a big city, with nearly 187,000 people. For such a big town it has a solid livability score of 79.

• Monthly expenditures: $2,666 
• Percent of population 65 and older: 17.3%
• Livability: 82

In Clarksburg, not only do you have monthly expenditures under $2,700 per month, you get a high livability score and a low monthly mortgage of $665.

• Monthly expenditures: $2,621 
• Percent of population 65 and older: 21.1%
• Livability: 77

Danville’s median household income of barely $42,000 may not be very high, but overall expenditures are low, especially your monthly mortgage, at around $867 per month.

• Monthly expenditures: $2,804 
• Percent of population 65 and older: 11.7%
• Livability: 78

Dumas, Texas, population 14,404, boasts a higher median household income, of $65,379. The average value of a home is around $175,000.

• Monthly expenditures: $2,826 
• Percent of population 65 and older: 22.5%
• Livability: 76

There are more adults over the age of 65 in Glasgow than in many cities on this list, at 22.5% of the population. The median household income is around $44,000.

• Monthly expenditures: $2,834 
• Percent of population 65 and older: 20.1%
• Livability: 76

In Campbellsville, the average home value is around $190,000, and the average monthly mortgage payment is close to half of your monthly expenses, at $1,139 per month.

• Monthly expenditures: $2,978 
• Percent of population 65 and older: 12.8%
• Livability: 78

In Hattiesburg, retirees squeak by with expenses just under $3,000, with $,1227 going monthly to mortgage payments.

• Monthly expenditures: $2,747 
• Percent of population 65 and older: 18.1%
• Livability: 81

Huntington retirees take in a small median household income of not quite $40,000, though the livability score is a high 81.

• Monthly expenditures: $2,812 
• Percent of population 65 and older: 12.0%
• Livability: 74

Russellville, which has a population of nearly 29,000 people, has a moderate livability score of 74. The median household income here is not quite $44,000.

• Monthly expenditures: $2,807 
• Percent of population 65 and older: 17.6%
• Livability: 76

In Port Lavaca, retirees have an average home value of nearly $179,000 and pay a monthly mortgage of around $1,068.

• Monthly expenditures: $2,938 
• Percent of population 65 and older: 20.1%
• Livability: 82

Charleston has a lot going for retirees. With a population of adults over the age of 65, a high livability score, and a higher median household income of nearly $59,000 per year, it’s a great place to retire.

• Monthly expenditures: $2,300 
• Percent of population 65 and older: 15.6%
• Livability: 72

In Borger, the average home value is not even $100,000, but the monthly mortgage payment is also low, at around $556 per month.

• Monthly expenditures: $2,919 
• Percent of population 65 and older: 14.8%
• Livability: 77

The big city of Baltimore, with nearly 585,000 residents, has a strong livability score of 77. Here, the median household income is almost $59,000 per year.

• Monthly expenditures: $2,648 
• Percent of population 65 and older: 16.7% 
• Livability: 73

In North Little Rock, of the $2,648 retirees pay each month in expenditures, $940 goes to a mortgage payment.

Methodology: For this study, GOBankingRates analyzed cities in the southern United States in order to find the places where you can retire on a budget of $3,000 a month. First, GOBankingRates found cities in the southern U.S. with a population of at least 10,000 as sourced from the U.S. Census American Community Survey. For each city, a number of factors were found including: total households, total population, total population aged 65 and over, and household median income — all sourced from the U.S. Census American Community Survey. The cost-of-living indexes were sourced from Sperlings BestPlaces, and using the national average cost of expenditures for residents aged 65 and up, the average expenditure costs can be calculated for each city. The average home value for single family homes was found for April 2024 as sourced from Zillow Home Value Index. By assuming a 10% down payment and using the national average 30-year fixed mortgage rate as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated for each city. The mortgage and expenditures can be used to find the total monthly cost of living for each city. The livability index was sourced from AreaVibes to determine the quality of life for each city. The average mortgage cost was scored and weighted at 1.00, the average expenditure cost was scored and weighted at 1.00 and the livability index was scored and weighted at 1.75. All the scores were combined and sorted to show the best southern cities to retire on a budget of $3,000 a month. All data was collected on and is up-to-date as-of Jun. 6, 2024.

Pictures are for representational purposes only.