7 Stunning Arizona Cities Where You Can Retire on $1,850 a Month (Or Less)

Arizona's year-round warm weather and beautiful scenery have long attracted older adults planning for retirement. However, some of the most popular cities, such as Paradise Valley, come with a hefty price tag and average home values exceeding $3.2 million. 

The good news is that some smaller cities can make the dream a reality for those on a budget. The key is just knowing where to look.

For those searching for the best cities for retirees on a budget, FinanceBuzz analyzed 180 cities across the U.S. and evaluated them based on affordability. These seven smaller communities in Arizona offer a chance to make the dream a reality without overspending.

Median monthly mortgage: $1,363

Located in the southeast part of the state at the base of the Huachuca Mountains, Sierra Vista offers more than 300 days of sunshine a year. The cost of living in the city is almost 10% lower than the national average, making groceries, transportation, and health care more affordable for those on a budget.

Because of the city's proximity to the San Pedro River and Ramsey Canyon Preserve, it's also a paradise for bird watchers.

Median monthly mortgage: $1,363

With a cost of living that's approximately 15% lower than the national average, Douglas is one of the cheapest cities to live in Arizona. The average housing costs are less than $800 a month, leaving a significant portion of an $1,850 budget for groceries, health care, transportation, and recreation.

Because the city lies on the Mexican border, it has a rich cultural history with its sister city, Agua Prieta.

Median monthly mortgage: $1,367

According to the Guinness Book of World Records, Yuma is known as the "Sunniest City on Earth." The city, situated in the southwest corner of the state, attracts a large number of retirees every winter who seek warmer weather, which helps fuel the local economy.

The cost of living in Yuma is 12% lower than the national average, with grocery prices around 14% less, so you can fill your cart for less.

Median monthly mortgage: $1,371

Lake Havasu City is known for its famous London Bridge, which the city's founder purchased from London in 1971, disassembled, and reassembled over the Colorado River. With crime rates 29% lower than the national average and a variety of recreational activities, the city is an ideal destination for retirees.

Median monthly mortgage: $1,371

Kingman is located in the Hualapai Valley with direct access to the Grand Canyon, Hoover Dam, and Las Vegas, providing plenty of recreation opportunities. The cost of living is approximately 6% lower than the state average, with the average monthly housing cost at just over $1,000.

The city has a historic downtown area, with local vineyards and a slower pace of life, which is often ideal for retirees.

Median monthly mortgage: $1,603

Tucson is the largest city on the list, with a population of more than 550,000 people, and the average household income is around $40,000. Warm weather, affordable housing, and plenty of access to outdoor activities make Tucson a popular spot for retirees.

While the cost of living is higher than the national average, it's still lower than the state average, making it a good choice for those who want to live in Arizona.

Median monthly mortgage: $1,695

Unlike some of the other cities on the list, Prescott has four very distinct seasons with hot summers and cold, snowy winters. Housing is the biggest expense, with the average housing costs at $1,695 a month. However, goods and services cost around 10 to 14% less than the national average, making it still an affordable option for Arizona.

The city is in the Prescott National Forest, which is a haven for those who enjoy hiking, biking, and fishing.

Retiring in Arizona on a budget is possible if you're open to the less-populated areas in the state. From the historic charm of downtown Kingman to the cultural diversity of Douglas, there are plenty of communities that offer low housing costs and an affordable cost of living.

If you're looking to maximize your senior benefits, Arizona doesn't tax Social Security, allowing seniors to keep more of their income for housing and other necessities.