13 Alabama Cities Where You Can Live on Nothing but Social Security

Alabama is a fabulous place to retire for so many reasons. Warm weather, a rich history, and friendly residents make it an attractive destination for a stress-free retirement.

Whether you're drawn to the Gulf Coast, quiet lakeside towns, or charming cities with deep cultural roots, the Heart of Dixie has something for everyone. Even better, Alabama's cost of living is about 12% lower than the national average and ranks third lowest overall, with many counties coming in even lower.

That can make a big difference if you're relying solely on Social Security. As of June 2025, the average monthly Social Security benefit for a single retiree is roughly $2,000, which is often enough to cover basic expenses in Alabama.

Ranked from highest to lowest rent, here are 13 cities and towns that show just how far your benefits can go in the Yellowhammer State.

Editor's note: All average rent prices are provided by Apartments.com, and all home prices by Zillow.

Average rent: $1,347/month

Median home sale price: $493,333

This scenic town on Mobile Bay is known for its walkable downtown, charming shops, art galleries, and museums. Fairhope also hosts regular events like dining tours, outdoor concerts, and farmers' markets.

After a dolphin cruise, why not unwind with a sunset stroll on the municipal pier? With its natural beauty and strong sense of community, Fairhope is a top choice for a peaceful, fulfilling retirement.

Average rent: $1,302/month

Median home sale price: $448,500

White-sand beaches, ocean breezes, and a laid-back lifestyle make Gulf Shores a top coastal destination. You'll find Florida-style living without the Florida price tag, plus fishing piers, golf courses, and scenic trails. Spend an afternoon at the Gulf Coast Zoo and cap it off with some of the world's best seafood.

Average rent: $1,260/month

Median home sale price: $709,667

A little quieter than Gulf Shores but just as beautiful, Orange Beach offers a coastal paradise of its own. Go sailing, stroll Gulf State Park, or take a boat excursion around the Orange Beach Islands. While home prices are steep, rental options off the beach remain within reach.

Average rent: $1,206/month

Median home sale price: $322,833

On the eastern shore of Mobile Bay, Daphne presents a tranquil setting with lush parks, a butterfly garden, and the half-mile Gator Boardwalk. Retirees enjoy easy access to shopping, health care, and the cultural offerings of nearby Mobile. It's a winning mix of natural beauty and suburban convenience.

Average rent: $1,173/month

Median home sale price: $164,317

Birmingham is Alabama's largest city and offers big-city amenities without the big-city price. Its revitalized downtown includes museums, parks, and countless eateries that serve top-notch barbecue and Southern classics. With excellent hospitals, public transit, and free cultural events, it's a smart choice for retirees on a budget.

Average rent: $1,074/month

Median home sale price: $281,083

Recently named one of the best places to retire by U.S. News, Huntsville offers a unique blend of affordability and a mix of attractions, including museums, art galleries, scenic parks, and trails. Once known as the "Rocket City," it's now a dynamic location with excellent access to health care. Plus, it's less than two hours from Birmingham, Chattanooga, and Nashville.

Average rent: $1,023/month

Median home sale price: $388,650

Best known as a college town, Auburn has more to offer than just game day. Its downtown features superb dining, cultural events, and lovely green spaces. Rent is affordable off campus, and retirees benefit from the energy and lifelong learning opportunities of a university community. You can even take fun classes like wine tasting or cooking.

Average rent: $975/month

Median home sale price: $210,817

A historic port city that's the birthplace of Mardi Gras, Mobile combines affordable living with a rich cultural scene — and plenty of gumbo and fried green tomatoes. Stroll its oak-lined streets, visit museums, or relax at riverfront parks. With low rent and easy access to the Gulf Coast, it's a perfect blend of history, activities, and coastal calm.

Average rent: $975/month

Median home sale price: $246,650

Home to the University of Alabama, Tuscaloosa strikes a balance between energy and relaxation. Residents enjoy museums, green spaces, a revitalized riverfront, and a wide range of dining and entertainment options. The city also offers excellent health care, including services for veterans. It's a great pick if you want college-town perks without college-town prices.

Average rent: $912/month

Median home sale price: $160,500

Montgomery blends rich history and culture with authentic Southern charm. From the Rosa Parks Museum to the Riverfront Park, you'll find top-notch theater, a zoo, a minor league baseball team, and more. With a cost of living 10.7% below the national average, Alabama's capital city is a smart choice for retirees on a budget.

Average rent: $635/month

Average home value: $90,897

Imagine retiring in a quirky fishing village near the Gulf Coast. Bayou La Batre is known for its unique blend of Southern charm and Southeast Asian influences, which shape the local cuisine, festivals, and community life. Nicknamed the "Seafood Capital of Alabama," it's a quiet town just a short drive to Mobile and two hours to New Orleans.

Average rent: $573/month

Average home value: $163,828

Eufaula sits on the banks of the Chattahoochee River and Lake Eufaula and is known for its antebellum homes and peaceful lake views. It's ideal for nature lovers and history buffs who appreciate a slower pace and stunning scenery. For city visits, Columbus, Georgia, is just an hour away, and Montgomery is under two hours.

Average rent: $504/month

Average home value: $201,220

With easy access to Lake Martin and a laid-back atmosphere, Alexander City is perfect for retirees who enjoy boating, fishing, golf, or lakeside walks. It offers small-town living with modern conveniences, and it's not far from cities like Birmingham, Montgomery, and Columbus, Georgia — perfect for a day trip or dinner and a show.

From beach towns to forested foothills, Alabama proves that living on Social Security alone can be possible and enjoyable. Each location makes planning for retirement easy with affordable housing, essential services, and a pace of life well-suited to retirement.

And here's a fun fact: Alabama is home to more than 20 state parks, including Gulf, Oak Mountain, and Cheaha State Park, one of the state's highest points at 2,407 feet. Whether you enjoy birdwatching, hiking, boating, or simply relaxing in the sun, your retirement years in Alabama might be richer than you imagined.