News & Trending Mortgage & Loans News

10 Best States if Your Dream Is To Retire in a Tiny Home

Living in one of these places makes it easier to downsize during your golden years.

woman standing at front door on a sunny day
Updated May 1, 2025
Fact checked

Moving into a tiny home in retirement can be a great way to simplify your life. You may have less financial stress once you downsize and move into the tiny home of your dreams.

Recently, LawnStarter ranked the best states for tiny homes using various criteria, such as average yard sizes in urban areas and what it calls "off-grid lifestyle-friendliness" in remote areas.

Here are the 10 best states to build or buy a tiny house.

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

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

10. Kansas

Overall score: 70.35

With wide-open pastures and low population density, Kansas is well-suited for small-home living.

The state has relatively few restrictive zoning laws. Additionally, LawnStarter ranks Kansas seventh for remote lifestyle, so it's suited to outdoor retirement adventures.

9. Texas

Overall score: 72.91

Texas has plenty of cheap land and open pastures, and there is very little in the way of zoning laws. All of that makes it an ideal spot for a tiny house.

Unsurprisingly, the vastness of the Texas landscape places the state second in remote lifestyle rank, so it's an easy place to go off the grid. If you want to be close to a city, there are many large metro areas from which to choose.

8. Georgia

Overall score: 73.4

Georgia has a favorable climate and plenty of sprawling countryside, along with favorable housing policies.

While it does not rank high for urban or remote lifestyles, the combination of climate and the ability to easily build housing makes it appealing to retirees.

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.

Become an AARP member now

7. Alabama

Overall score: 74.45

With some of the cheapest housing and land costs of any state on this list, Alabama is ideally suited for your tiny house.

The state ranks sixth for urban lifestyle, making it an appealing retirement destination.

6. Montana

Overall score: 76.39

Montana's beautiful landscapes and ample open land align well with the tiny house ethos of sustainable living.

The state ranks in the top 10 for remote lifestyle, which makes sense given that you'll have no shortage of outdoor activities. Just make sure your home is properly insulated and has heating for the winter months.

5. Minnesota

Overall score: 78.32

Minnesota offers a blend of urban and rural settings suitable for tiny homes.

The state is ranked fourth for remote lifestyle for a reason: The sweeping natural beauty is ideal for outdoor adventures.

4. Maine

Overall score: 83.8

Maine's picturesque landscapes and coastal charm make it a desirable location. It also offers the perk of limited housing regulations.

With one of the highest average yard acreages of any state, this is the perfect place to settle down in a tiny home during retirement.

3. Arkansas

Overall score: 84.6

Arkansas has a low cost of living and a warm climate, making it ideal for tiny-home living.

The state's rich cultural heritage and natural beauty offer a fulfilling retirement experience. Due to its cheap and plentiful land, Arkansas ranks fifth in urban lifestyle.

2. Kentucky

Overall score: 85.34

Kentucky's rolling hills and bluegrass fields create a serene setting for your tiny home. The state's favorable regulations and affordable land make it a practical choice for tiny house enthusiasts.

With a remote lifestyle rank of No. 3 in the nation, it's an easy spot to settle down in while you tune out the rest of the world.

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 insurance2per 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.

Save up to 68% when you sign up for protection today!

1. Vermont

Overall score: 89.07

Vermont tops the list of states friendly to tiny-home owners. Its progressive housing policies and wide-open lands make it a winner with tiny-home enthusiasts. It also ranks second for remote lifestyle.

The state's scenic beauty and vibrant communities provide an ideal backdrop for a fulfilling retirement in your tiny house. As with other northern states on this list, make sure your home has insulation and heating for those winter months.

Bottom line

One of the smartest money moves for homeowners in retirement is to downsize into a smaller home, especially a tiny house that is easy to maintain.

Some states have laws that make them more conducive to building a small home on a piece of land. Before you make the big jump, consider renting a tiny home to see if the lifestyle is truly right for you.

Financebuzz logo

Thanks for subscribing!

Please check your email to confirm your subscription.