Arizona has long been a rival to Florida as the best place to retire. Its benefits are multi-fold. On the financial side, the state doesn't tax Social Security, and the tax rate on retirement withdrawals is only 2.5%. In addition, it has low property taxes with caps for seniors and veterans.
Besides the savings, which are vital to retirees living on a monthly budget of less than $1,750, Arizona offers seniors plenty of sunshine and accessible health care at low cost. If you choose one of the affordable nine cities on this list, you can set yourself up for a stress-free retirement and enjoy a comfortable lifestyle regardless of your budget.
Editor's note: All rental data pulled from bestplaces.net unless otherwise noted.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover® Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!1 <p>See website for details.</p>
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
Apply for a Discover Cashback Checking account today
Douglas
/images/2025/01/26/above_the_border_at_douglas_arizona.jpg)
Average rent: $850
With a rent of less than $1,000, you'll have lots of disposable income if you move to the border town of Douglas.
Besides offering some of the most affordable housing in the state, Douglas has a peaceful, small-town vibe. It also offers plenty of opportunities for outdoor activities, which are ideal for retirees looking to move away from the hustle and bustle of the city.
Bisbee
/images/2024/04/30/bisbee-arizona-adobe.jpg)
Average rent: $840
Bisbee has Douglas beaten when it comes to affordable housing costs. It also offers a lot of variety for seniors looking to enjoy their leftover cash. The city has a rich history and vibrant cultural life, so retirees who can't enjoy the scenic surroundings aren't left out.
The cooler climate in Bisbee can also help you explore more during summer, which is always a bonus for your retirement plan.
Nogales
/images/2025/01/23/above_nogales_arizona.jpg)
Average rent: $890
Nogales is an affordable border town. Its grocery and utility prices match its low housing costs, making it an attractive place for retirees who enjoy diverse experiences and enticing Mexican cuisine.
If you've always wanted to enjoy the unique cultural blend that Arizona has to offer, there aren't many more affordable spots to do so than Nogales.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $15 the first year with auto-renewal.
Kingman
/images/2024/11/27/kingman_arizona.jpg)
Average rent: $1,060
Living in Kingman can make your dream of visiting the Grand Canyon come true. Its proximity, and that of Turquoise Mountain Mining Company and other local mines, can turn any senior willing to retire early into a lifelong explorer.
You're also close to Lake Havasu, where you can stay cool on the water during the hot summers. Add that to a low cost of living and 28.3% lower-than-average median home prices, and you have no reason to pass on Kingman as your new home.
San Luis
/images/2023/04/18/san-luis-arizona.jpg)
Average rent: $910
San Luis is close to Yuma and the Mexican border. Housing costs are more affordable than in the rest of the state and Yuma proper. The city is a great spot for enjoying vibrant local cuisine and warm weather.
In San Luis, there's always something for you to do. Take up hiking or biking in the cooler months, and enjoy its community-minded atmosphere year-round.
Trending Stories
Sierra Vista
/images/2024/04/30/sierra-vista-arizona.jpg)
Average rent: $1,120
Sierra Vista is a good spot to enjoy all that living in the high desert has to offer. The city is surrounded by mountains and gives you easy access to Brown Canyon Ranch.
Sierra Vista is close to the Fort Huachuca military installation. In addition, it enjoys cooler summers than the rest of the state, making it easy to go outdoors and explore.
Ajo
/images/2025/06/01/immaculate-conception-church-of-ajo.jpg)
Average rent: $1,150
This Sonoran Desert small town lets retirees enjoy nature at its finest. It has some of the darkest night skies in the U.S., so if you've always wanted to add stargazing to outdoor activities like hiking and bird watching, you'll be spoiled in Ajo.
What's more, this small community has affordable health care options, making it an attractive retirement destination for health-conscious seniors.
Yuma
/images/2025/01/10/cityscape_of_yuma_arizona.jpg)
Average rent: $1,150
Yuma can give you a taste of Arizona's history. You can visit places like the Yuma Crossing National Heritage Area and Sanguinetti House Museum & Garden, in addition to hiking in the nearby state parks and recreation areas.
Yuma is also a gourmet food lover's paradise, which is perfect, given that its reasonable home price of $279,400, 21% lower than the U.S. average, will leave enough cash in your pocket to enjoy the delicious local food.
Tucson Estates
/images/2025/06/01/suburb-of-tucson.jpg)
Average rent: $1,170
This Pima County community is perfect for nature lovers who want to live in the Sonoran Desert. Besides a plethora of outdoor pursuits, retirees can enjoy a vibrant city life, including art galleries, festivals, and historical landmarks.
Tucson Estates has lower median home prices than other cities in the Tucson Metro Area. To boot, utility costs like internet service are quite affordable, which is good news for your $1,750 budget.
In 2023 Americans lost over $10 billion to identity theft and fraud
That's right. According to the FTC, Americans lost over $10 Billion to fraud and identity theft in 2023.
But you can safeguard your data with all-in-one identity theft protection services from Aura which comes with $1,000,000.00 in identity theft insurance2 <p>Identity Theft Insurance underwritten by insurance company subsidiaries or affiliates of American International Group‚ Inc. The description herein is a summary and intended for informational purposes only and does not include all terms‚ conditions and exclusions of the policies described. Please refer to the actual policies for terms‚ conditions‚ and exclusions of coverage. Coverage may not be available in all jurisdictions.</p> per adult, to cover you should you have eligible identity theft-related losses.
An individual plan starts at $9 per month, and you can choose a family plan that outmatches most others - includes Dark Web monitoring to scour data breaches and leaks for your sensitive personal data — such as Social Security numbers (SSN), Medicare information, and phone numbers.
Before you make your next online purchase, protect what you’ve built for a fraction of what it could cost you if your data were compromised.
Bottom line
/images/2025/03/26/suburban-homes-in-tucson-arizona.jpg)
Whether you pick lesser-known cities like Douglas or large places like Yuma as your retirement havens, you'll be able to stretch your $1,750 monthly budget without sacrificing quality of life.
Want more ways to supplement your Social Security in Arizona? Find out if you qualify for property tax exemptions or rebates, or invest in low-cost rental property in one of the affordable cities above if you have a small nest egg.
FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment. Our partners do not influence our ratings.
2025 award winner Best Online Checking Account
Subscribe Today
Learn how to make an extra $200
Get vetted side hustles and proven ways to earn extra cash sent to your inbox.