I Found: Where is the cheapest place to live in the United States for retirees?

Last year, more than 338,000 Americans moved in retirement — a 44% jump year over year. That surge shows a clear trend: many seekers are chasing lower bills without losing access to care and community.

I set out to answer one focused question: identify places where everyday cost living stays low while services, safety, and amenities remain strong. I synthesize national rankings and on-the-ground information, using weighted metrics like tax friendliness, health care access, and home affordability.

My approach: blend data and experience. I point to states and cities where senior population levels suggest ready programs and solid local support. I also explain tradeoffs: taxes versus sticker price, health proximity versus space, and milder winters versus cheaper housing.

Read on with a practical checklist: use this list to narrow options, plan visits, and match finances with lifestyle. The right city can extend your nest egg and improve daily life.

Key Takeaways

• I combine independent rankings and local data to highlight affordable options for retirees.
• Affordability depends on taxes, health access, home costs, and climate tradeoffs.
• Look for cities with higher senior population: services and programs follow demand.
• Use numbers plus site visits: data guides choices, but lived experience confirms them.
• The best retirement spot balances finances with health needs and community fit.

How I defined “cheapest” for retirees: costs, taxes, and care

My method weighs real costs, state tax rules, and nearby medical options. I focus on measurable factors so you can compare cities and states objectively.

Data inputs: I use weighted sources: Tax Friendliness (30% via SmartAsset), Healthcare Quality and Access (25% via U.S. News), Home Affordability (20% via Zumper/Realtor.com medians), Cost of Living (15% via AdvisorSmith), and Sunshine percentage (10% via CurrentResults).

Why these factors matter: taxes change lifetime spending; hospital proximity reduces travel and out‑of‑pocket costs; home prices and rent shape monthly budgets. Sunshine affects utility and lifestyle costs.

1. I define affordability using total living expenses, home costs, state and local tax burden, and health care access.
2. I translate ranking inputs into action: pick two priority factors (for many, tax rules and home prices) and filter cities accordingly.
3. I weigh population signals: higher senior population can mean better services but also pressure on care access.

Quick answer: Where is the cheapest place to live in the United States for retirees?

I highlight a short list of cities that stretch retirement income without cutting care. These four metros combine below‑average cost, solid hospitals, and friendly tax rules that matter over decades.

Top overall value picks

Sioux Falls, SD: Cost of living for retirees about 3.7% below the national average; state rated “Most Tax Friendly.” Median home ~ $329,892. Strong geriatric hospitals and Milken recognition for successful aging.

Fargo, ND: Retiree living costs ~9.4% below average; North Dakota is tax friendly. Median home ~$316,580. NDSU brings arts, sports, and services that benefit an aging population.

Peoria, IL: Retiree cost of living ~24.4% below average; housing sits ~61.5% below national medians. Median home ~$130,361. Robust riverfront culture and parks make low costs livable.

Huntsville, AL: Living costs ~5.8% below average; Alabama rates tax friendly for many retirees. Better wellness scores, diversified economy, and strong outdoor and cultural amenities.

“Taxes and nearby care often change a retirement plan more than sticker prices.”

Next steps: model your after‑tax income across two short‑listed cities, track median home and rent trends, and try a month‑long stay before you move.

Most affordable small and mid‑sized cities for retirement on a budget

I compare mid-sized towns that balance affordable housing with nearby health access and active community life.

Sioux Falls, South Dakota

Why it stands out: cost living for retirees sits about 3.7% below average and the state ranks as “Most Tax Friendly.” Top hospitals and Milken recognition mean strong care and programs for older adults.

Fargo, North Dakota

Fargo offers affordable home prices (median ≈ $316,580) and a college‑town vibe that supports culture and year‑round services. Budget for winter utility and vehicle costs, but indoor amenities reduce seasonal isolation.

Peoria, Illinois

Peoria posts steeply lower housing costs—median home around $130,361—and a lively riverfront museum plus 62 parks for low‑cost recreation and hiking. That makes daily living cheap without sacrificing activity.

Mankato, Minnesota

Mankato pairs a revitalized downtown and expanding trails with retiree costs about 13.3% below average. Consider income prospects and volunteer roles if you want part‑time engagement in this community.

• Do this next: map hospitals and specialists near any neighborhoods you like.
• Model full home ownership costs: taxes, insurance, utilities, and maintenance often change your monthly number more than the listing price.

College and university towns with low costs and high quality of life

College towns often stretch retirement budgets while keeping classes, culture, and care close at hand.

I look for places where a campus anchors affordable learning, strong medical access, and active community life.

Lexington, Kentucky

What to know: More than 100 parks and trails, the Donovan Fellowship (65+ free classes), and an Osher Lifelong Learning Institute make study and social life simple.

Tax-wise: Kentucky ranks favorably for many older adults, which helps stretch fixed income while staying near quality care.

Columbus, Ohio

Program 60: Residents 60+ can audit classes tuition-free. Median home values sit near $244,665, and retiree living costs run about 8.6% below average.

Morgantown, West Virginia

WVU offers discounted courses and a strong medical network, including Ruby Memorial Hospital. That pairing matters when planning long-term health needs.

Manhattan, Kansas

K‑State and Osher programs provide lifelong learning. Median home prices near $284,215 and an expanding trail system keep daily activity affordable and convenient.

• How I evaluate these towns: campus proximity, transit, and parking for easy participation.
• Confirm registrars’ age thresholds, seat availability, and fees before you move.
• Pair continuing education with volunteering to build ties and purpose.

Urban hubs that balance amenities, access, and affordability

I focus next on cities where amenities and access meet sensible costs for people on fixed income. These metros offer museums, trails, strong medical networks, and pockets of affordable housing.

Kansas City, Missouri

Why consider it: retiree cost of living runs about 11.6% below average. The arts scene, jazz clubs, and university programs keep days full.

Note: state tax ratings are mixed—check how retirement income and property are treated before you move.

Omaha & Lincoln, Nebraska

Health and aging: Omaha ranks high for successful aging, thanks to provider density and affordable care. Lincoln shows retiree cost about 7.4% below average and strong social services per 1,000 seniors.

Both cities have extensive trails and parks that support active living and community engagement year round.

Albuquerque, New Mexico

Sun and budget: about 310 sunny days a year and retiree costs roughly 8% below average. Income tax rates run 1.7%–5.9%, and sales tax sits near 7.625%.

Caveat: senior poverty and violent crime rates require careful neighborhood research and a safety plan.

• Compare state and local taxes for retirement income, property, and sales before deciding.
• Confirm seasonal utility rates—electricity and heating can change annual costs.
• Map hospitals, urgent care, and specialty clinics within a 15–20 minute radius of candidate neighborhoods.

Actionable tip: visit for a week, join local events, and tally cultural memberships to estimate annual lifestyle spending against your income.

Coastal and waterfront options that won’t break a fixed income

I scout coastal towns where water access and outdoor life meet steady budgets. I focus on places with real recreational value and sensible housing costs.

Myrtle Beach, South Carolina

Why it works: Sixty miles of beach, roughly 100 golf courses, and a lively entertainment district give free or low‑cost options for daily life.

Practical note: off‑peak golf and public piers let you enjoy coastal amenities without big monthly bills.

Punta Gorda, Florida

Why it works: Nearly half the population is 65+, with 18 miles of bike and walking trails and many 55+ communities.

Gulf Coast access comes without the top‑tier Florida pricing common in larger coastal cities.

Lafayette, Louisiana

Why it works: Rich Cajun culture, major birding flyways, and extensive waterways deliver year‑round outdoor life at lower costs than nearby metro areas.

“Coastal options can stretch retirement income when you weigh insurance, tax, and healthcare early in the plan.”

1. Check hurricane insurance, flood zones, and elevation before buying a home.
2. Compare tax and fee rules across states: homestead breaks, insurance surcharges, and municipal fees matter.
3. Map coastal hospitals and evacuation routes to protect health and budget during storms.
4. Test off‑season living to confirm crowds, services, and running costs match your plan.

Mountain and high‑country retreats with reasonable costs

I look for towns where trailheads, cultural calendars, and medical access cluster within easy reach of affordable homes. These places deliver four‑season outdoor life and a compact network of services that support active aging without steep price tags.

Boise, Idaho

Why it stands out: Boise blends year‑round hiking, skiing, and kayaking with Boise State University perks like lectures and performances. The city draws a growing population but still offers neighborhoods with sensible home prices and good quality health care nearby.

Chattanooga, Tennessee

Why it works: Arts districts, festivals, and riverfront trails create plenty of low‑cost recreation. Biking and walking paths along the Tennessee River keep daily living active and affordable for older adults who value culture and outdoor time.

Roanoke, Virginia

Why I include it: More than 700 miles of trails surround a compact downtown with markets, breweries, and venues. Walkability lowers transportation spending, and the trail density supports frequent hiking and cycling without long drives.

• Screen utility averages: mountain winters can raise heating costs.
• Check state and local taxes on retirement income before you buy.
• Tour neighborhoods near trailheads and transit to match lifestyle goals.
• Map primary care and urgent care close to your favorite outdoor places.

Tax and healthcare: two factors that can outweigh sticker‑price costs

Taxes and health services often decide whether a budget‑friendly town stays affordable over a decade. A low listing price can be erased by high tax rates or limited medical care. I weigh both because Empower places tax friendliness (30%) and healthcare (25%) at the top of retiree affordability models.

Tax‑friendly vs. not tax‑friendly states: how retiree income is treated

Tax policy changes long‑term spending: state rules on withdrawals, pensions, and Social Security alter lifetime income by tens of thousands. No‑income‑tax states sound good, but they may raise property or sales rates. Run a blended rate scenario with your actual sources before you move.

Healthcare access and quality: why Sioux Falls, Pittsburgh, and Lexington stand out

Hospital density, specialists, and in‑home services shape outcomes and out‑of‑pocket bills. Proximity to cardiology, orthopedics, and geriatrics cuts travel time and cost.

“Low tax plus strong hospitals creates a one‑two value punch that often beats low sticker prices alone.”

• I recommend auditing local primary care, cardiology, orthopedics, and home‑care providers near neighborhoods you like.
• Run two scenarios: one for Tax Friendly states and one for Not Tax Friendly states using your real income streams.
• Check Medicare Advantage and Medigap network maps by city to avoid surprise out‑of‑network charges.

Bottom line: tax policy can trump cheaper rent. Combine local tax rules with health access and service quality data before you commit. That step often saves more than any single sticker‑price bargain.

Stretching Social Security and retirement income: housing and everyday costs

A strong retirement plan pairs social security timing with neighborhoods where money goes farther. I start by sizing your expected income and testing it against typical monthly bills. That step shows whether a small home purchase or a modest rental stretches your savings best.

Housing affordability hotspots: Peoria, Rochester, and Columbus

Peoria, IL: median home ≈ $130,361; housing costs about 61.5% below national retiree averages. That gap boosts monthly cash flow for essentials and activities.

Rochester, NY: median home ≈ $231,623; retiree cost living ~11.4% below average. Note: New York is not tax friendly, so model state deductions against expected income.

Columbus, OH: median home ≈ $244,665; retiree cost living ~8.6% below average and access to Program 60 helps cut learning and leisure costs.

Everyday expenses: sales tax, utilities, transportation, and insurance

Everyday rates quietly erode monthly money. Albuquerque highlights that: sales tax ≈ 7.625% and income tax 1.7%–5.9% illustrate how state and local charges change spending power.

• Anchor: set Social Security start date, then map total income to candidate cities.
• Track: sales tax, internet, insurance, transit fares, and seasonal utility rates before you move.
• Trim: use senior discounts, transit passes, and library services to reduce recurring costs.

“Anchor your plan on Social Security timing, then test it across two tax states to avoid surprises.”

Practical rule: use a 50/30/20 retirement budget, stress‑test it for two different state tax scenarios, and keep a one‑year cash buffer for moves, medical, or rate spikes.

Lifestyle fit matters: community, recreation, and senior programs

I believe that numbers guide choices, but day‑to‑day life keeps a move worthwhile.

Community and nearby services shape how active and healthy you stay for years. I weigh parks, trails, learning programs, and easy access to care alongside cost and housing numbers.

Trails, parks, and outdoor life

Sioux Falls hosts abundant parks and Falls Park, with Milken noting strong funding for older adults. That access makes walking, volunteerism, and local events simple and low cost.

Spokane offers the 40‑mile Centennial Trail and lakes nearby. Regular outdoor time supports physical health and social benefits without big spending.

St. George sits near Zion and runs the Huntsman World Senior Games. The desert climate and trails deliver recreation that stays affordable and engaging for many people.

Learning and culture

Osher Lifelong Learning programs appear in Lexington, Columbia (MO), and Manhattan (KS). They provide low‑cost classes and meetup chances that expand social networks and skills.

Peoria runs senior museum days and discounts, helping retirees keep cultural life active on a modest budget.

“Weight community fit alongside spreadsheets: the right neighborhood keeps you active, social, and healthy for years.”

• Tip: map libraries, senior centers, and volunteer hubs near candidate neighborhoods.
• Join trail or park groups to build friendships and accountability for regular activity.
• Sample town events—farmer’s markets and arts walks reveal whether people and services match your expectations.
• Plan for accessible housing and transit so life perks remain usable as mobility changes.

Research sources and rankings that informed this list

Several national studies and local profiles form the backbone of my city-level affordability analysis. I combined institutional reports with municipal figures so the numbers reflect real community conditions.

Kiplinger affordability picks and Milken insights

Kiplinger supplies city-level profiles with cost-of-living differentials, median home values, senior income, and state tax ratings for many cities. I used those profiles as a reliable cross-check for home and tax figures.

I paired Kiplinger notes with Milken’s “successful aging” signals that highlight metros with strong health networks and aging services.

Kiplinger city profiles were especially helpful for median values and tax context.

Empower’s meta-ranking and methodology

Empower blends Tax Friendliness (30%), Healthcare Access (25%), Home Affordability (20%), Cost of Living (15%), and Sunshine (10%).

I reproduced that weighting to build a reproducible ranking and to let you re-weight factors based on your priorities.

NEA destination highlights for budget-minded adults

NEA-style guidance expands choices beyond obvious picks by adding coastal, mountain, urban, and college-town examples with safety and service checks.

How I used these sources:

• I synthesized Kiplinger, Milken, and Empower into one practical list.
• I cross-checked median home numbers, cost differentials, and tax rates across sources.
• I recommend keeping a simple spreadsheet of city stats, program availability, and annual rate changes for yearly updates.

“No ranking replaces a site visit: treat this research as a shortlist generator, then validate on the ground.”

Conclusion

I’ll leave you with this: affordability matters, but daily life benefits decide whether a move pays off for years.

I recommend treating the list as options: shortlist three cities, model taxes and rates against your Social Security and income, and confirm local healthcare access.

Then test it: plan a month‑long stay before you commit. Use trusted profiles like best places to retire as a starting check for median homes, tax notes, and population signals.

Monitor taxes, insurance, and service rates annually. Combine data with on‑the‑ground visits and you’ll find a place and community that fit your life and budget.