​​10 Places to Retire for $2,000 or Less

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. According to the Federal Reserve’s most recent Survey of Consumer Finances (using 2022 data), the median combined value of retirement accounts for families whose reference person is aged 65 to 74 was $200,000, and many older adults report having no retirement accounts at all.1

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

• 2 Experts Consulted
• 50 Hours of Research
• 105 Locations Evaluated
• 10 Places Selected

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 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.

10 Places to Retire for $2,000 Per Month or Less

Uniontown, Pennsylvania

Uniontown, Pennsylvania

• Population: 9,738
• Average cost of living: about 14 percent below the national average
• Percentage of seniors: roughly 20 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. You’ll find 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.

On average, residents pay $809 per month in rent or $1,118 per month for selected homeowner costs. 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 under $30,000. As an added bonus, about 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: 137,206
• Average cost of living: about 9 percent below the national average
• Percentage of seniors: around 17 percent
• State taxes: 3.8 percent flat income tax (effective 2025), no state inheritance tax for deaths occurring on or after January 1, 2025, 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 anticipates 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 $1,014, while the average monthly ownership cost for those with a mortgage is $1,640. 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 of this size.

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: 23,846
• Average cost of living: about 14 percent below the national average
• Percentage of seniors: about 22 percent
• State taxes: 4.95 percent income tax, no inheritance tax, up 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 2026

Residents of Freeport pay a monthly average of $797 in rent and $1,082 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 5,000 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: 297,923
• Average cost of living: about 5 percent below the national average
• Percentage of seniors: around 15 percent
• State taxes: 5.84 percent top income tax rate, up to 15 percent inheritance tax (county level), no state 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 45,000 seniors!

» Helpful Resource: The Best Assisted Living in Lincoln

Lincoln residents can expect to pay an average of $1,124 per month in rent or $1,921 in monthly owner costs with a mortgage. That makes Lincoln more expensive than Cedar Rapids, but still very affordable compared to nearby Omaha, where average rent tends to be higher. Nebraska has been working to cut taxes on Social Security income, with most Social Security benefits no longer taxed at the state level for many retirees.

» You Might Also Like: Best Assisted Living in Omaha

Steubenville, Ohio

Steubenville, Ohio

• Population: 17,911
• Average cost of living: about 16 percent below the national average
• Percentage of seniors: around 21 percent
• State taxes: 2.75 percent to 3.5 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 retirement. The city features many historic attractions, including Fort Steuben and the moss-covered ruins at Beatty Park. We love that it has so many assisted living and retirement communities for such a small city, thanks to its proximity to nearby towns like Wintersville and Weirton.

The average rent in Steubenville is $783, which is still highly competitive. Average mortgage payments are a bit higher than in 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: 6,364
• Average cost of living: about 14 percent below the national average
• Percentage of seniors: around 21 percent
• State taxes: 2.36 percent to 5.12 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.

» You Might Like: Active SeniorLiving Communities

Seniors in Nitro can expect an average monthly rent of around $900 and average monthly homeowner costs of $1,004. That may not be as inexpensive as housing in Steubenville or Freeport, but with an average cost of living below the national average, you can expect to save in many other ways. We also like that West Virginia boasts reasonable income tax rates and no inheritance or estate taxes.

Hutchinson, Kansas

Hutchinson, Kansas

• Population: 39,374
• Average cost of living: about 13 percent below the national average
• Percentage of seniors: around 19 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.

The median rent in Hutchinson is $858 per month, while the median mortgage payment is $1,208. 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: 16,592
• Average cost of living: about 13 percent below the national average
• Percentage of seniors: around 15 percent
• State taxes: 0.25 percent to 4.75 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 $862 per month, while median mortgage payments are about $1,114. 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, so you can 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: 681,729
• Average cost of living: about 9 percent below the national average
• Percentage of seniors: around 14 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 $1,080 and an average mortgage of $1,559 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: 6,540
• Average cost of living: about 10 percent below the national average
• Percentage of seniors: around 22 percent
• State taxes: 1.1 percent to 2.9 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. 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 $812, and the median mortgage payment is $1,323. 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.