10 Places to Retire for $2,000 or Less
The best affordable places to retire in 2024
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It’s not easy to retire with enough savings to live in an expensive area. Rent alone can be enough to push many seniors away from larger cities such as New York City and Los Angeles and into quieter suburban areas — especially if your nest egg isn’t as large as you hoped. In a Pew Research poll of recent and soon-to-be retirees, 49 percent of respondents saved less than $200,000 for retirement, 41 percent saved between $200,000 and $999,999, and just 9 percent saved $1 million or more. 1
When you stretch those numbers over the years of retirement, it’s easy to see that many seniors are not fully prepared. Using our retirement savings calculator, you can see that $200,000 in savings would last less than 12 years. That means roughly half of older adults have enough savings to see them through only the first decade of retirement.
Social Security and other retirement benefits can supplement your savings, but it’s important to budget wisely as you prepare for retirement. Luckily there are many affordable places to live, where the cost of living is lower than the national average and more likely to fall within your budget.
In this guide, we’ve researched the 10 places to retire for just $2,000 per month or less. Continue reading to find the perfect place to retire on a budget!
Our Methodology: How We Selected the Cheapest Places to Retire
We understand that retirees have a wide range of interests and needs, so we spent over 50 hours curating a list of the cheapest places in the country to retire. We picked towns and cities in 10 states, giving you the best variety of options possible. We also took the following statistics and factors into consideration.
- Population: You may prefer a sleepy little town or a bustling city of more than 500,000 people. Either way, we included locations of different sizes. In addition to the overall population, we also considered quality-of-life factors such as walkability and safety.
- Cost of living: Cost of living (COL) is one of the most important factors we used when choosing the places on this list. We put particular emphasis on rent and mortgage costs, along with the overall COL compared to the national average. We excluded any cities with housing costs that would exceed 50 percent of a $2,000 monthly budget.
- Percentage of seniors: We looked at the percentage of seniors (compared to the total population) living in each city. Not only is it nice to be around people your own age, but seniors also tend to gravitate toward places where it’s easier and more affordable to retire!2
- State taxes: We considered state income taxes, which can eat into your budget. If you’re preparing your estate for your children, grandchildren, or other beneficiaries, it’s also good to know if a state levies its own inheritance or estate taxes. 3
All data about population, rent, mortgage, overall cost of living, and the percentage of seniors in each city is sourced from the United States Census Bureau. State tax information is sourced from the Tax Foundation.
>> Related Reading: Best Retirement Communities in the U.S.
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10 Places to Retire for $2,000 Per Month or Less
Uniontown, Pennsylvania
Uniontown, Pennsylvania
- Population: 9,689
- Average cost of living: 12 percent below the national average
- Percentage of seniors: 21.1 percent
- State taxes: 3.07 percent income tax, 4.5 percent to 15 percent inheritance tax, no estate tax
Just an hour’s drive south of Pittsburgh, Uniontown is a small, beautiful, and tranquil town in southern Pennsylvania. There are various historical monuments and attractions in the area, including Fort Necessity, a structure built by George Washington during the Seven Years’ War. Uniontown enjoys small-town charm and an affordable cost of living. It has struggled with crime in recent years, but Uniontown is very walkable during the day and no less safe than similarly sized towns like Nitro, West Virginia.
Pro Tip: Need help with your retirement budget? Check out our guide to building a budget on a fixed income!
On average, residents pay $743 per month in rent or $589 per month for a mortgage. Utility costs tend to be higher than the national average (thanks in part to Pennsylvania’s cold winters), but most residents can live comfortably on an annual income of about $27,600. As an added bonus, more than one in five residents are 65 or older, making it a hotspot for older adults!
» Related Reading: Ways to Save on Your Utility Bills
Cedar Rapids, Iowa
Cedar Rapids, Iowa
- Population: 136,429
- Average cost of living: 11 percent below the national average
- Percentage of seniors: 16.2 percent
- State taxes: 4.40 percent to 6 percent income tax, 2 percent to 4 percent inheritance tax, no estate tax
Not only is Cedar Rapids a much larger city than Uniontown, but it is also close to a lot more high-quality assisted living and retirement communities. That’s a huge benefit if you or a loved one anticipate needing help with activities of daily living (ADLs) in the future. If you like being near the water without paying beachfront prices, Cedar Rapids, Iowa, is split down the middle by the picturesque Cedar River.
» You Might Like: Ocean and Beachfront Retirement Communities
The average monthly rent in Cedar Rapids is $886, while the average monthly mortgage payment is $769. Housing costs are higher in Cedar Rapids than in cities like Freeport, Illinois, and Steubenville, Ohio, but they are still lower than most U.S. cities with over 130,000 residents. Cedar Rapids is not the most walkable city in Iowa, but it’s one of the safest cities in the country. That’s ideal for seniors who like to get out of the house and feel safe while enjoying everything the city has to offer. Some of the most popular attractions in Cedar Rapids include the Paramount Theatre and the National Czech and Slovak Museum and Library.
Freeport, Illinois
Freeport, Illinois
- Population: 23,413
- Average cost of living: 12 percent below the national average
- Percentage of seniors: 22.9 percent
- State taxes: 4.95 percent income tax, no inheritance tax, 0 percent to 16 percent estate tax
Freeport is a relatively small city in northern Illinois, about 30 minutes west of Rockford. It is home to the Don Opel Arboretum and the Freeport Art Museum, among dozens of other local attractions. It strikes a good balance between small towns like Uniontown, Pennsylvania, and larger cities like El Paso, Texas. Freeport enjoys a tranquil atmosphere surrounded by nature, while also benefiting from a robust health-care system and multiple retirement communities.
» Related Reading: Retirement Communities in 2024
Residents of Freeport pay a monthly average of $756 in rent and $505 in mortgage payments. That makes Freeport an excellent option for seniors ready to buy a home, since you could potentially secure a very affordable mortgage. You can also enjoy the company of a large population of seniors; more than 5,300 Freeport residents are 65 or older. Freeport is also pretty safe and walkable. One downside to retiring in Freeport or other cities in Illinois is the high estate tax, which could have a negative impact on your estate plan.
Lincoln, Nebraska
Lincoln, Nebraska
- Population: 292,627
- Average cost of living: 8 percent below the national average
- Percentage of seniors: 14 percent
- State taxes: 4.67 percent income tax, no inheritance or estate tax
Lincoln is the state capital of Nebraska, just an hour’s drive southwest of Omaha. It’s a sizable college town with a large network of outer suburbs. That means you can enjoy a more urban or suburban lifestyle, depending on where you live in the city. We also love that Lincoln has a healthy mix of age groups, including more than 40,000 seniors!
» Helpful Resource: The Best Assisted Living in Lincoln
Lincoln residents can expect to pay an average of $998 per month in rent or $925 in monthly mortgage payments. That makes Lincoln more expensive than Cedar Rapids, but still very affordable compared to nearby Omaha, where average rent is around $1,100. Nebraska is a great place to call home if you have kids or grandkids, since you and your family won’t have to pay any state-level inheritance or estate taxes.
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Steubenville, Ohio
Steubenville, Ohio
- Population: 18,030
- Average cost of living: 13 percent below the national average
- Percentage of seniors: 19.3 percent
- State taxes: 0 percent to 3.75 percent income tax, no inheritance or estate tax
Located along the Ohio River, which separates Ohio from West Virginia, Steubenville is a small city full of history and natural beauty. Surrounded by a waterfront to the east and an open forest to the west, Steubenville is a great place for nature lovers and people seeking a quiet life in retirement. The city features many historic attractions, including Fort Steuben and the moss-covered ruins at Beatty Park. We love that it has easy access to many assisted living and retirement communities for such a small city, thanks to its proximity to nearby towns like Wintersville and Weirton.
FYI: Looking to buy a home in a new city? Check out our guide to mortgages for seniors!
The average rent in Steubenville is $704, which is even cheaper than the average in Uniontown. Average mortgage payments are a bit higher than Uniontown, however, at $674 per month. Aside from housing, seniors can enjoy a COL 13 percent lower than the national average, relatively low income tax rates, and no state inheritance or estate taxes. As long as you don’t mind the cold Ohio winters, Steubenville is one of the best cities in the Midwest for retirees!
Nitro, West Virginia
Nitro, West Virginia
- Population: 6,458
- Average cost of living: 18 percent below the national average
- Percentage of seniors: 21.6 percent
- State taxes: 3 percent to 6.5 percent income tax, no inheritance or estate tax
Nitro is a sparsely populated town in the foothills of West Virginia, bordered to the west by the Kanawha River. It is home to the man-made Ridenour Lake and Park (pictured above), making it a great location for fishing enthusiasts and nature lovers alike. Nitro may not have all the conveniences of a larger city, but it is just a 20-minute drive from the state capital of Charleston.
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Seniors in Nitro can expect an average monthly rent of around $834 and average monthly mortgage payments of $718. That may not be as inexpensive as housing in Steubenville or Freeport, but with an average cost of living 18 percent lower than the national average, you can expect to save in many other ways. We also like that West Virginia boasts relatively low income tax rates and no inheritance or estate taxes.
Hutchinson, Kansas
Hutchinson, Kansas
- Population: 39,699
- Average cost of living: 10 percent below the national average
- Percentage of seniors: 17.6 percent
- State taxes: 3.1 percent to 5.7 percent income tax, no inheritance or estate tax
Hutchinson, Kansas, is less than an hour northwest of Wichita. Thanks to a strong local economy based on wheat production and oil extraction, it has many of the resources and amenities you would find in a larger city. The city is home to various parks, the Cosmosphere Aerospace Museum, and the annual Kansas State Fair. That makes it a good location for people who want to enjoy city living without the heavy traffic and dense populations.
Did You Know? Nearly 35 percent of the population of Kansas is 50 or older.
The median rent in Hutchinson is $852 per month, while the median mortgage payment is $657. That makes the city an especially good bargain for seniors who are house hunting. If you need an assisted living or memory care facility, Hutchinson is home to more than a dozen communities. Like West Virginia, Ohio, and many other states throughout the country, Kansas has no inheritance or estate taxes that would reduce what you leave to your friends and family.
Ada, Oklahoma
Ada, Oklahoma
- Population: 16,542
- Average cost of living: 17 percent below the national average
- Percentage of seniors: 13.5 percent
- State taxes: 4.5 percent income tax, no inheritance or estate tax
Ada, Oklahoma, is located an hour and a half southeast of Oklahoma City. It may seem a little sparse and remote at first glance, but it has multiple hospitals and clinics, as well as several Christian and non-faith-based assisted living communities. It’s a great place for seniors who want to live in a low-population area without giving up easy access to medical and personal care.
» Related Reading: Faith-Based Senior Care and Assisted Living
The median rent in Ada is roughly $853 per month, while median mortgage payments are about $748. That still makes housing in Ada less expensive than housing in Lincoln, but more expensive than in Steubenville and Uniontown. Fortunately, the cost of living is substantially lower than the national average, which means you can generally get more bang for your buck on things like gas, groceries, utilities, and medical care. We also love that Ada is a very safe place to live, especially compared to places like Uniontown, which has seen more violent crime in recent years.
El Paso, Texas
El Paso, Texas
- Population: 677,456
- Average cost of living: 11 percent below the national average
- Percentage of seniors: 13.5 percent
- State taxes: No income, inheritance, or estate tax
El Paso is the sixth-most populous city in Texas and one of the most affordable major cities in the region. The Franklin Mountains serve as the backdrop to the vibrant city, which is also near multiple state parks and home to four private golf courses. If you love playing golf, El Paso may be the perfect retirement spot for you. El Paso also has diverse cuisine options, and it’s an especially great place to live if you love Tex-Mex food!
» Also Check Out: Activities for Seniors
We love that El Paso is a major city that still offers affordable rent and mortgages. You can expect an average rent of $976 and an average mortgage of $965 per month. El Paso is one of the most expensive cities on our list for renters or homeowners, but its housing and general living costs are still far lower than other major cities in Texas, including Houston, San Antonio, and Dallas. El Paso is also pretty walkable and very safe, although both factors vary by neighborhood. Another great thing about retiring in El Paso? You can take advantage of the statewide tax incentives!
Valley City, North Dakota
Valley City, North Dakota
- Population: 6,566
- Average cost of living: 13 percent below the national average
- Percentage of seniors: 20.6 percent
- State taxes: 0 percent to 2.5 percent income tax, no inheritance or estate tax
Valley City, North Dakota, sits along Interstate 94 in the southeastern part of the state, about an hour directly west of Fargo. There’s no doubt that Valley City is a small and somewhat remote place to live, but it’s also one of the most affordable places for retirees. It doesn’t have access to nearly as many hospitals or senior care facilities as Ada, but it still offers basic access to the services older adults need.
» Useful Resource: Types of Senior Living and Levels of Senior Care
The median rent in Valley City is $776 and the median mortgage payment is $849. It’s an affordable place to live, but it may not be the best option for prospective homeowners. What’s great about Valley City is that it’s a small, suburban city. It has a walkable downtown, featuring restaurants and a variety of locally owned shops. If you like the idea of living in a small, affordable community where you can walk down the street and wave to your neighbors, Valley City is a great option.
Pew Research. (2020). Pew Retirement Savings Survey of Near and Recent Retirees: Topline Results.
U.S. Census Bureau. (2023). QuickFacts United States.
Tax Foundation. (2023). State Individual Income Tax Rates and Brackets for 2023.
