Surprising fact: 65% of adults aged 50+ say they would move for lower living costs, and last year 338,000 Americans actually relocated after retirement — a 44% jump.
I write this guide so you can stretch your nest egg without trading away a good life. I use current affordability signals: housing, taxes, healthcare access, safety, and local amenities.
Affordability matters now: with that many people moving and Florida drawing large numbers, choosing the right city can add years of comfort to your budget.
I balance raw costs against tradeoffs: winter severity, health services, and travel links. Each city snapshot will cover cost context, tax rules, medical access, and lifestyle hooks—parks, museums, trails, and events.
How I rank options: I synthesize city-level costs, state tax rules, and trusted rankings so you get practical, testable choices. I also flag common pitfalls like low local incomes or higher crime so you can budget wisely.
Key Takeaways
- Many older adults will move for lower costs; affordability now shapes retirement planning.
- I evaluate total living costs—not just housing—to define value.
- Tradeoffs matter: healthcare, climate, and safety affect real affordability.
- Florida remains a major draw, but below-average cities exist across many states.
- Test a location before committing: short stays, renting, and sampling local life.
How We Picked Affordable Retirement Spots Right Now
I blend objective measures with lived experience: I sort cost data, tax rules, and service access so you see practical options for retirement today.
Core factors I weigh
Cost first: housing, utilities, transport, groceries, and retiree health spending are compared to average national figures.
Tax mapping: I review state tax treatment for Social Security, pensions, and retirement withdrawals, plus sales and property taxes that affect cash flow.
Present-day lens
I score healthcare access using hospital proximity, specialty centers, and “successful aging” rankings. Safety and amenities get explicit checks: crime levels, parks, museums, and lifelong-learning programs matter for daily life.
| Factor | What I measure | Why it matters |
|---|---|---|
| Costs | Housing, utilities, groceries, healthcare | Determines monthly budget and savings longevity |
| Tax | State rules on pensions, withdrawals, sales, property | Affects disposable income for residents |
| Healthcare & access | Hospitals, specialists, doctors per capita | Supports long-term health and emergency needs |
I cross-verify each city with multiple sources and flag income realities and climate risks so you can compare real-world options, not just low sticker prices.
Sioux Falls, South Dakota: Low Costs, Pro-Senior Healthcare, Big Nature
For retirees balancing cost and care, Sioux Falls delivers practical savings and reliable geriatric services. I find day-to-day costs about 3.7% below the national average and a median home value near $329,892, so you can right-size without overspending.
Tax perks matter: South Dakota has no state income, estate, or inheritance taxes, which keeps Social Security and retirement withdrawals largely untouched. That tax edge supports fixed-income planning for many residents and reduces withdrawal pressure.
Healthcare access is strong: local hospitals offer geriatric specialties and Sioux Falls ranks well on successful aging lists. Good services and nearby clinics make routine care and emergencies manageable.
Outdoors, safety, and practical trade-offs
- Parks and attractions: Falls Park and linked trails give daily options for walks, groups, and low-cost social programs.
- Size and stability: A mid-sized city with low unemployment offers steady services and local economy support.
- Realities: Winters bring cold snaps; plan for heating and transport but expect savings and solid healthcare in return.
I advise visiting neighborhoods, comparing proximity to clinics, grocery stores, and airport links before committing. Run numbers on renting vs. buying—including taxes, insurance, and maintenance—to pick the best total-cost path.
Lexington, Kentucky: Bluegrass Culture and Budget-Friendly Living
Lexington delivers affordability without cutting cultural and learning options. Cost of living runs about 7.8–9.2% below the U.S. average, so monthly budgets stretch further here.
Below-average costs with generous retiree tax treatment
Kentucky does not tax Social Security. The state also allows up to $31,110 per person in exemptions for other retirement income. That tax setup increases take-home income and lowers withdrawal pressure.
Lifelong learning and community access
The Donovan Fellowship lets people 65+ take University of Kentucky classes free. The Osher Lifelong Learning Institute adds low-cost courses. These programs give intellectual benefits and keep residents active.
Outdoors, parks and trails
Lexington supports outdoor life: 100+ parks, five public golf courses, and a 734-acre preserve with 10+ miles of trails. Low-cost recreation helps control monthly spending.
- Cultural life: Lexington Opera House, galleries, and seasonal events offer affordable nights out.
- Health access: University-affiliated facilities underpin a strong local healthcare network.
- Practical tip: Rent near the UK campus for 90 days to test classes, transit, and neighborhood fit before buying.
Albuquerque, New Mexico: Sunny Skies, Desert Trails, and Value
If you value year-round sunshine and affordable living, Albuquerque deserves a close look. I find costs run about 8–12% below the national average while average income sits near $67,995 versus the U.S. $80,610.
Cost of living vs. income realities
Lower costs meet lower average income. That mix means housing and groceries stretch further, but you must budget realistically for healthcare and utilities.
My tip: cap rent or mortgage at a comfortable share of monthly income, then lock medical and transit envelopes to control spending.
Taxes, safety, and smart budgeting
Expect a 7.625% sales tax and a progressive state income tax from 1.7% to 5.9% on taxable income. Factor these rates into big purchases and withdrawals.
Violent crime rates run above national averages. I recommend choosing neighborhoods with better safety profiles and planning well-lit evening routes.
Outdoor life, events, and community
With about 310 sunny days, hiking, biking trails, and golf are nearly year-round options. Local groups make fitness social and low-cost.
The International Balloon Fiesta is a signature event: spectacular, busy, and worth planning around if you visit in October.
| Factor | Key data | Practical action |
|---|---|---|
| Costs | 8–12% below national average | Prioritize housing and healthcare in monthly budget |
| Income | Avg ~$67,995 (city) vs ~$80,610 (U.S.) | Model realistic withdrawal rates and supplements |
| Taxes | Sales 7.625%; income 1.7%–5.9% | Plan large purchases and estimate tax on withdrawals |
| Quality & attractions | 310 sunny days; Balloon Fiesta; trails | Join local hiking and cycling groups for low-cost social life |
Fargo, North Dakota: Tax-Friendly, Affordable Housing, University Vibe
I find Fargo a clear option for retirees who want steady budgets and a lively campus scene. Costs run about 9.4% below the national average for older residents, and median home values sit near $316,580.
Housing, taxes, and monthly math
Tax Friendly state rules help protect retirement income and boost net monthly cashflow. That tax stance pairs well with attainable housing, so you can buy or rent without extreme strain.
Cold readiness and quality tradeoffs
Expect January lows near 0°F and roughly 47 inches of snow per year. Budget for insulation, snow removal, and winter gear; modern rentals often beat older houses after heating and HOA costs are tallied.
- University perks: NDSU events offer low-cost concerts, theater, and sports.
- Services & health: Confirm primary care and specialists nearby to reduce winter travel.
- Practical test: Visit in January and April to judge comfort over different seasons.
| Factor | Key data | Action |
|---|---|---|
| Costs | ~9.4% below U.S. | Model heating + maintenance in home budget |
| Housing | Median ~$316,580 | Compare modern rental vs. older home total costs |
| Quality of life | Campus events, trails nearby | Join campus groups for year-round social options |
Peoria, Illinois: Rock-Bottom Housing and Riverfront Amenities
Peoria pairs rock-bottom home values with a walkable riverfront that lowers daily expenses. I see overall cost for retirees about 24.4% below the national average and housing roughly 61.5% below typical levels. Median home value sits near $130,361, so monthly ownership or rent can be uniquely low.
How far your dollar goes: housing and daily costs
Housing savings free up funds for groceries, utilities, and local services. I find daily living budgets stretch further here than in similar-sized places.
Museums, parks, and free senior programs
The Riverfront Museum runs free admission days for 60+ and a lecture series that adds low-cost cultural options. The Peoria Park District maintains 62 park sites, miles of trails, golf, and a nature center—great for free activity and social life.
| Factor | Key data | Practical tip |
|---|---|---|
| Housing | ~61.5% below national average; median ~$130,361 | Compare neighborhoods near riverfront for walkability |
| Daily cost | 24.4% below national average for retirees | Redirect savings to healthcare and travel |
| Attractions & parks | Riverfront Museum perks; 62 park sites | Bundle museum days with park walks for low-cost outings |
Tip: Target neighborhoods that minimize car dependence and keep access to clinics and community events. Volunteer at cultural institutions—many offer perks in exchange for hours, which boosts affordability and local ties.
Columbus, Ohio: Big-City Energy at Small-City Prices
Columbus blends urban energy with prices that keep monthly budgets sane. I find overall costs below national averages while median home value holds near $244,665. That balance makes this city a compelling option for older adults who want services without metro-scale expense.
Affordable housing with major amenities
Home prices remain accessible compared with larger metros. Short North and German Village offer walkable life, restaurants, breweries, and galleries within easy reach.
Compare ownership vs. renting: factor HOA, property tax, and transit savings when you model monthly cash flow.
OSU benefits for older adults and vibrant neighborhoods
Ohio State’s Program 60 lets residents 60+ take courses free. Audit a class, attend a campus event, and test commute times before signing a lease.
Columbus supports strong community networks: meetup groups, volunteer roles, and regular arts events keep residents engaged.
| Feature | Key data | Why it matters | Action |
|---|---|---|---|
| Housing | Median ~$244,665 | Accessible ownership costs vs major metros | Compare neighborhoods for walkability and taxes |
| Transit & mobility | COTA lines, bike paths | Reduces car dependence and running costs | Map routes from potential homes to hospitals |
| Cultural amenities | Zoos, museums, professional sports | Fill calendars with low-cost local events | Join local groups and campus programs |
Huntsville, Alabama: Science City with Southern Value
I find Huntsville offers a clear living edge: costs for retirees run about 5.8% below the national average. That gap preserves discretionary spending for travel and health needs.
Tax friendliness and cost-of-living edge
Alabama does not tax Social Security, and state rules generally improve monthly stability for fixed-income residents. That tax treatment is one of the main benefits for older people here.
Culture, outdoors, and strong healthcare presence
Huntsville hosts NASA’s Marshall Space Flight Center, Redstone Arsenal, and UAH, which support robust hospitals and specialists. Good healthcare access pairs with tech-driven jobs that keep local services strong.
Local attractions and a symphony add low-cost entertainment. Greenways, bass fishing, and parks make daily outdoor life easy in a warm climate.
- Neighborhood tip: Live near research hubs and hospitals to cut drive time and stress for appointments.
- Summer prep: Plan for heat and humidity; improve AC efficiency to save on utilities.
- Try before you buy: Stay a few weeks in summer and winter to test climate and community fit.
Volunteer at science museums or educational centers—many welcome skilled retirees and offer social benefits while keeping costs down.
Spokane, Washington: Mountains, Lakes, and Tax-Friendly Living
Spokane offers a rare combo: mountain access, lake days, and no state income tax that preserves more retirement cash.
I value practical tradeoffs: Spokane’s overall costs sit near national norms, so it is not the lowest-cost city, but Washington’s tax rules keep more of your Social Security and withdrawal dollars in hand.
Balancing cost, tax, and four-season recreation
Outdoors first: 76 lakes, 40 miles of the Spokane River Centennial Trail, and abundant parks make daily activity low-cost and accessible. Join local hiking and cycling groups to plug into community life fast.
Taxes matter: no state income tax reduces pressure on fixed incomes. That difference can fund extra health care, travel, or hobbies without raising monthly strain.
Practical tips: pick neighborhoods close to the Centennial Trail and major medical centers. Confirm insulation and HVAC efficiency before you buy—winter bills vary by home. Spokane International Airport also keeps family visits and travel simple.
Local flavor: wineries, breweries, and small attractions sit a short drive away, adding quality and variety without big costs. If Seattle-area prices feel out of reach, Spokane is one of those places worth a close look.
Where is the cheapest place to retire in the US?
I name finalists that offer low monthly outlays while keeping access to care and local life. I focus on total cost, not just a headline home price.
Top contenders by overall affordability and quality of life
Peoria stands out for ultra-low housing: living costs about 24.4% below the U.S. norm and median homes near $130k.
Fargo pairs low cost with friendly tax rules and stable services.
Sioux Falls keeps more retirement income with no state income tax and ranks high for healthcare access.
Manhattan, KS adds deep learning perks and about 16.6% lower living costs.
How taxes and healthcare tilt the decision
Taxes matter: no state income tax or Social Security exemptions can add hundreds each month. Healthcare density can outweigh a slightly cheaper mortgage.
I advise modeling Social Security, withdrawals, and medical spending for 3–5 years. Then field-test finalists in peak and shoulder seasons before committing.
| City | Edge | Who benefits |
|---|---|---|
| Peoria, IL | Lowest housing cost | Buyers on fixed budgets |
| Sioux Falls, SD | No income tax, strong healthcare | Adults prioritizing care access |
| Fargo, ND | Tax-friendly, steady services | Those who accept cold winters |
Manhattan, Kansas: College-Town Perks with Midwest Prices
I recommend Manhattan for retirees who want active community life and sensible costs. This small city pairs a university calendar with practical expenses.
Housing and savings: Living costs for older residents run about 16.6% below the national average. Median home value sits near $284,215, so you avoid overspending while keeping options open.
Learning, trails, and daily routine
Kansas State University offers UFM and Osher courses for $25–$50, a low-cost path to stay sharp and meet neighbors. An expanding trail network (40+ miles today) boosts walkable, car-light living.
- Aim for neighborhoods near campus or trailheads for easy access to events and transit.
- Plan a fall visit: sample game-day traffic and leaf season before committing.
- Model Kansas taxes on non-social security income to estimate monthly benefits accurately.
| Factor | Key data | Action |
|---|---|---|
| Affordability | 16.6% below national average | Redirect housing savings to an HSA or emergency medical reserve |
| Home cost | Median ~$284,215 | Compare campus-adjacent vs. quiet suburban blocks |
| Healthcare & access | Regional hospitals; specialist referrals may go to centers nearby | Verify primary care and referral pathways before you move |
Rochester, New York: Budget Homes, Culture, and Winters to Consider
Rochester offers notable housing bargains, but a careful tax and winter plan makes the difference.
I find cost of living for retirees about 11.4% below the U.S. average, and housing sits near $231,623 — roughly 64% below typical values. That median home value can sharply reduce monthly housing bills.
New York ranks among states that are less friendly for many retiree taxes. Plan withdrawals and Social Security timing carefully. I recommend pairing Roth conversions and withdrawal timing to limit state tax impact over the coming years.
Practical tradeoffs and living tips
Average snowfall nears 97.5 inches each year. Budget for snow removal, winter tires, and layered clothing. Confirm heating costs and home insulation before you buy.
- Scout neighborhoods with strong snow services and close amenities to cut winter driving.
- Check local hospitals and specialist access — winter storms can complicate travel for care.
- Embrace indoor hobbies: museums, theaters, and year-round events keep social life rich.
- Try a winter visit and a spring thaw stay to feel seasonal swings before committing.
Proximity to the Finger Lakes gives easy day trips: 100+ wineries are within 90 minutes, which boosts cultural and recreational options. For retirees who value arts, museums, and steady housing savings, Rochester can deliver solid quality — if you plan for taxes and winter costs up front.
Lincoln, Nebraska: Capital-City Services, Parks, and Value
Lincoln blends capital-city scale services with neighborhood ease, so retirees get fast access without urban hassle. I see living costs for older adults about 7.4% below the national average, which helps stretch fixed income.
Healthcare and social services density for older adults
I track real access: Lincoln supports roughly 30 healthcare and social services facilities per 1,000 seniors versus ~19 nationally. That density means shorter waits and easier follow-ups for routine and specialty care.
Practical benefits: 130+ parks, museums, and nightlife options give low-cost ways to stay active and engaged. That mix improves daily quality for many residents.
“Live near clinics and parks: you cut transit time, lower costs, and keep more energy for the things you enjoy.”
- Use community centers for fitness and classes—great free or low-cost social programs.
- Compare Medicare Advantage vs. Medigap: match plans to local network strength before you move.
- Test weeks: schedule a doctor visit and a park day to validate convenience.
| Factor | Key data | Action |
|---|---|---|
| Cost | ~7.4% below U.S. | Model monthly budgets including transit and utilities |
| Healthcare | ~30 facilities per 1,000 seniors | Choose neighborhoods near major clinics |
| Parks & culture | 130+ parks and venues | Use greenways for daily movement and social life |
Tulsa, Oklahoma: Trails, Arts Districts, and Wallet-Friendly Living
I recommend Tulsa for retirees who want affordable living and cultural options in one spot.
Value: Costs for older residents run about 11.6% below the national average. That double-digit saving frees money for travel, hobbies, and health.
Tax boost: Oklahoma exempts Social Security income from state tax, which raises monthly cash flow for many households.
Culture and movement: The Tulsa Arts District has galleries, restaurants, and music venues including the Woody Guthrie Center. River Parks gives miles of biking and running trails for daily exercise.
- Pick neighborhoods near trails and the arts district for walkable, efficient living.
- Buy museum and venue memberships if you attend often—they pay off fast.
- Map primary care and specialists within short drives before committing.
| Feature | Key data | Action |
|---|---|---|
| Costs | ~11.6% below U.S. | Redirect savings to health and leisure |
| Culture & attractions | Tulsa Arts District, Woody Guthrie Center | Attend festival weekends to sample offerings |
| Outdoor access | River Parks miles of trails | Join walking groups for fitness and community |
Test visits: go for a festival weekend and a winter month. That shows crowd levels, heat, and how community life fits your routine.
Hot Springs, Arkansas: Relaxation First, With Reasonable Costs
Hot Springs blends restorative springs with smart household economics. I find its 47 thermal springs, historic bathhouses, and nearby lakes create a daily routine focused on wellness and easy recreation.
Thermal baths, lakes, and retiree tax treatment
Wellness matters: historic bathhouses and thermal waters offer low-cost health routines that many retirees adopt for stress relief and gentle therapy.
Tax advantages: Arkansas exempts Social Security benefits and allows up to $6,000 of other retirement income exclusions. That boosts monthly flexibility and lowers withdrawal pressure.
- Outdoors: golf, fishing, and boating keep leisure affordable and frequent.
- Climate: hot summers and mild winters mean fewer extreme-weather costs and more outdoor days per year.
- Practical tips: test spa memberships, budget golf passes if used weekly, and confirm local hospital access before moving.
| Feature | Quick data | Action |
|---|---|---|
| Thermal springs | 47 active springs | Try punch cards before annual plans |
| Tax | Social Security exempt; $6,000 retirement exclusion | Model withdrawals under current rules |
| Parks & attractions | Lakes, trails, historic bathhouses | Pick neighborhoods near bathhouses and markets |
Community note: join lake associations or volunteer at park events to build a local circle and manage peak-season crowds with early reservations.
How to Choose Your Budget-Friendly Retirement City
I start with a simple rule: match clear priorities with practical checks. That helps turn hopeful ideas into a tested destination that fits real life.
Match lifestyle: coast, mountains, city, or small town
List your non-negotiables: climate, proximity to family, and daily activities. I recommend ranking items so tradeoffs are visible when you compare options.
Run the numbers: costs, tax, healthcare, and travel access
Model monthly costs: housing, utilities, groceries, and estimated healthcare spending. Then add state tax effects on Social Security and withdrawals.
| Factor | Key check | Why it matters |
|---|---|---|
| Tax | Social Security rules; income exemptions | Alters monthly cash flow |
| Healthcare | Nearest hospital; specialist access | Reduces emergency travel and stress |
| Access | Airport and transit links | Saves time for visits and trips |
Field test: seasonal visits, renting first, and community fit
Visit in peak and shoulder seasons. Rent for 3–6 months and join a parks class or an Osher lecture. That shows neighborhood vibe and service access.
- Self-audit: write your must-haves before you look.
- Map access: confirm hospitals, specialists, and airport links.
- Revisit the math: include insurance, commute, and maintenance in totals.
Final step: I test a shortlist, then pick the option that balances budget and community. That method keeps adults in control and focused on lasting comfort.
Conclusion
Here’s the bottom line: affordability wins when low housing costs, smart tax rules, and strong healthcare meet the amenities you use every day.
I recommend finalists that balance those needs: Peoria, Fargo, Sioux Falls, Lexington, Columbus, Lincoln, Tulsa, and Hot Springs.
Match climate, community, and activities with your priorities. Shortlist three or four places, run a five-year cash-flow model, then plan seasonal test stays.
Taxes and health access change monthly budgets by hundreds. I also value lifelong learning programs in Lexington, Columbus, and Manhattan for long-term life benefits.
Take control: build a personal checklist, schedule two scouting trips this year, and I’ll keep updating data so your decision stays current for years.
