50 Best Cities To Retire on $3,500 a Month (2024)

You’re planning to retire in the not-so-distant future, which means you’ll be living on a fixed income. Therefore, you’re looking for a new hometown where you can enjoy life while stretching your dollar to the max.

According to a new GOBankingRates study, 136 U.S. cities were analyzed by combining the average mortgage and average expenditure costs, as well as average home values. The monthly total cost calculated narrowed down the cities where the average monthly cost was equal to or less than $3,500 a month. Looking at the cost of living expenditures for people ages 65 and older each month — e.g., rent, groceries, healthcare costs — you might see that your personal budget can’t handle passing the $3,500-per-month mark, so you want to make a strategic move.

Thankfully, there are plenty of options around the country to choose from. Whether you’re hoping to move to a city with warmer weather, want to be closer to family or are looking for a tight community with a lot to do now that you have more free time, we found 50 places that will meet your needs.

Ready to start searching for a new place to enjoy your golden years? Keep reading to discover these cities where you can retire for cheap.

• Livability Score: 77
• Jan 2024 Avg Home Value: $149,236
• Jan 2024 Avg Mortgage: $885
• Total Expenditures Cost: $1,831

• Livability Score: 79
• Jan 2024 Avg Home Value: $172,7923
• Jan 2024 Avg Mortgage: $1,024
• Total Expenditures Cost: $1,808

• Livability Score: 78
• Jan 2024 Avg Home Value: $166,915
• Jan 2024 Avg Mortgage: $989
• Total Expenditures Cost: $1,768

• Livability Score: 79
• Jan 2024 Avg Home Value: $170,438
• Jan 2024 Avg Mortgage: $1,010
• Total Expenditures Cost: $1,809

• Livability Score: 82
• Jan 2024 Avg Home Value: $206,658
• Jan 2024 Avg Mortgage: $1,225
• Total Expenditures Cost: $1,763

• Livability Score: 79
• Jan 2024 Avg Home Value: $174,780
• Jan 2024 Avg Mortgage: $1,036
• Total Expenditures Cost: $1,760

• Livability Score: 78
• Jan 2024 Avg Home Value: $189,907
• Jan 2024 Avg Mortgage: $1,126
• Total Expenditures Cost: $1,594

• Livability Score: 82
• Jan 2024 Avg Home Value: $212,403
• Jan 2024 Avg Mortgage: $1,259
• Total Expenditures Cost: $1,703

• Livability Score: 76
• Jan 2024 Avg Home Value: $131,609
• Jan 2024 Avg Mortgage: $780
• Total Expenditures Cost: $1,812

• Livability Score: 76
• Jan 2024 Avg Home Value: $124,582
• Jan 2024 Avg Mortgage: $738
• Total Expenditures Cost: $1,853

• Livability Score: 86
• Jan 2024 Avg Home Value: $233,742
• Jan 2024 Avg Mortgage: $1,385
• Total Expenditures Cost: $1,800

• Livability Score: 83
• Jan 2024 Avg Home Value: $201,204
• Jan 2024 Avg Mortgage: $1,193
• Total Expenditures Cost: $1,808

• Livability Score: 81
• Jan 2024 Avg Home Value: $191,161
• Jan 2024 Avg Mortgage: $1,133
• Total Expenditures Cost: $1,739

• Livability Score: 79
• Jan 2024 Avg Home Value: $164,574
• Jan 2024 Avg Mortgage: $976
• Total Expenditures Cost: $1,766

• Livability Score: 82
• Jan 2024 Avg Home Value: $211,665
• Jan 2024 Avg Mortgage: $1,255
• Total Expenditures Cost: $1,668

• Livability Score: 88
• Jan 2024 Avg Home Value: $262,005
• Jan 2024 Avg Mortgage: $1,553
• Total Expenditures Cost: $1,734

• Livability Score: 87
• Jan 2024 Avg Home Value: $231,578
• Jan 2024 Avg Mortgage: $1,373
• Total Expenditures Cost: $1,816

• Livability Score: 85
• Jan 2024 Avg Home Value: $231,199
• Jan 2024 Avg Mortgage: $1,370
• Total Expenditures Cost: $1,691

• Livability Score: 84
• Jan 2024 Avg Home Value: $217,659
• Jan 2024 Avg Mortgage: $1,290
• Total Expenditures Cost: $1,703

• Livability Score: 76
• Jan 2024 Avg Home Value: $130,807
• Jan 2024 Avg Mortgage: $775
• Total Expenditures Cost: $1,702

• Livability Score: 80
• Jan 2024 Avg Home Value: $152,758
• Jan 2024 Avg Mortgage: $905
• Total Expenditures Cost: $1,813

• Livability Score: 84
• Jan 2024 Avg Home Value: $183,622
• Jan 2024 Avg Mortgage: $1,088
• Total Expenditures Cost: $1,854

• Livability Score: 76
• Jan 2024 Avg Home Value: $138,802
• Jan 2024 Avg Mortgage: $823
• Total Expenditures Cost: $1,624

• Livability Score: 77
• Jan 2024 Avg Home Value: $106,168
• Jan 2024 Avg Mortgage: $629
• Total Expenditures Cost: $1,875

• Livability Score: 91
• Jan 2024 Avg Home Value: $263,378
• Jan 2024 Avg Mortgage: $1,561
• Total Expenditures Cost: $1,788

• Livability Score: 78
• Jan 2024 Avg Home Value: $159,639
• Jan 2024 Avg Mortgage: $946
• Total Expenditures Cost: $1,601

• Livability Score: 82
• Jan 2024 Avg Home Value: $189,178
• Jan 2024 Avg Mortgage: $1,121
• Total Expenditures Cost: $1,671

• Livability Score: 76
• Jan 2024 Avg Home Value: $111,876
• Jan 2024 Avg Mortgage: $663
• Total Expenditures Cost: $1,733

• Livability Score: 87
• Jan 2024 Avg Home Value: $201,204
• Jan 2024 Avg Mortgage: $1,193
• Total Expenditures Cost: $1,852

• Livability Score: 78
• Jan 2024 Avg Home Value: $125,942
• Jan 2024 Avg Mortgage: $747
• Total Expenditures Cost: $1,739

• Livability Score: 87
• Jan 2024 Avg Home Value: $213,041
• Jan 2024 Avg Mortgage: $1,263
• Total Expenditures Cost: $1,772

• Livability Score: 84
• Jan 2024 Avg Home Value: $141,826
• Jan 2024 Avg Mortgage: $841
• Total Expenditures Cost: $1,996

• Livability Score: 79
• Jan 2024 Avg Home Value: $103,893
• Jan 2024 Avg Mortgage: $616
• Total Expenditures Cost: $1,897

• Livability Score: 88
• Jan 2024 Avg Home Value: $233,473
• Jan 2024 Avg Mortgage: $1,384
• Total Expenditures Cost: $1,678

• Livability Score: 81
• Jan 2024 Avg Home Value: $112,482
• Jan 2024 Avg Mortgage: $667
• Total Expenditures Cost: $1,951

• Livability Score: 78
• Jan 2024 Avg Home Value: $128,409
• Jan 2024 Avg Mortgage: $761
• Total Expenditures Cost: $1,656

• Livability Score: 89
• Jan 2024 Avg Home Value: $236,733
• Jan 2024 Avg Mortgage: $1,403
• Total Expenditures Cost: $1,682

• Livability Score: 81
• Jan 2024 Avg Home Value: $176,633
• Jan 2024 Avg Mortgage: $1,047
• Total Expenditures Cost: $1,544

• Livability Score: 76
• Jan 2024 Avg Home Value: $82,516
• Jan 2024 Avg Mortgage: $489
• Total Expenditures Cost: $1,762

• Livability Score: 83
• Jan 2024 Avg Home Value: $164,241
• Jan 2024 Avg Mortgage: $974
• Total Expenditures Cost: $1,707

• Livability Score: 78
• Jan 2024 Avg Home Value: $93,483
• Jan 2024 Avg Mortgage: $554
• Total Expenditures Cost: $1,778

• Livability Score: 81
• Jan 2024 Avg Home Value: $136,709
• Jan 2024 Avg Mortgage: $810
• Total Expenditures Cost: $1,697

• Livability Score: 78
• Jan 2024 Avg Home Value: $84,982
• Jan 2024 Avg Mortgage: $504
• Total Expenditures Cost: $1,791

• Livability Score: 82
• Jan 2024 Avg Home Value: $162,320
• Jan 2024 Avg Mortgage: $962
• Total Expenditures Cost: $1,550

• Livability Score: 89
• Jan 2024 Avg Home Value: $210,890
• Jan 2024 Avg Mortgage: $1,250.
• Total Expenditures Cost: $1,669

• Livability Score: 89
• Jan 2024 Avg Home Value: $198,575
• Jan 2024 Avg Mortgage: $1,177
• Total Expenditures Cost: $1,720

• Livability Score: 81
• Jan 2024 Avg Home Value: $118,273
• Jan 2024 Avg Mortgage: $701
• Total Expenditures Cost: $1,662

• Livability Score: 85
• Jan 2024 Avg Home Value: $160,742
• Jan 2024 Avg Mortgage: $953
• Total Expenditures Cost: $1,642

• Livability Score: 84
• Jan 2024 Avg Home Value: $115,511
• Jan 2024 Avg Mortgage: $685
• Total Expenditures Cost: $1,838

• Livability Score: 91
• Jan 2024 Avg Home Value: $208,073
• Jan 2024 Avg Mortgage: $1,233
• Total Expenditures Cost: $1,694

Jennifer Taylor contributed to the reporting of this article.

Methodology: To find the best cities to retire on $3,500 a month, GOBankingRates analyzed cities cost of living indexes across multiple expenditure categories including; [1] Grocery cost of living index, [2] Healthcare cost of living index, [3] Utilities cost of living index, [4] Transportation cost of living index, [5] Miscellaneous cost of living index all sourced from Sperlings BestPlaces. Each cost of living index was multiplied by it’s [6] national average expenditure category cost for people aged 65 and over as sourced from the Bureau of Labor Statistics 2022 Consumer Expenditure Survey. The total of these expenditures gives the average monthly total expenditure cost for each city. The [7] average single family home value was sourced from Zillow Home Value Index and using the [8] National average 30-year Fixed Rate Mortgage, as sourced from the Federal Reserve Economic Data, the average mortgage can be calculated for each city. Combining the average mortgage and average expenditure costs, the monthly total cost can be calculated and only the cities where the monthly total cost was equal to or less than $3,500 a month were kept. The livability index was found for each city as sourced from AreaVibes. All the places with a livability index below 75 were removed as they represent places with a poor quality of life and do not qualify for this study. All remaining cities are within the affordability for the retirement age range and have a high quality of life. The livability index was scored and weighted at 1.00, the monthly total cost with was scored and weighted at 1.25. The scores were combined and sorted to show the best cities to retire on $3,500 a month. All data was collected and is up to date as of Feb. 28, 2024.

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