12 Lake Towns Where You Can Actually Live on Nothing but Social Security

Living comfortably on Social Security alone is no easy feat, and many assume that serene, waterfront living is too pricey and out of the question. However, the average Social Security monthly benefit, which was $1,976 as of January 2025, can actually stretch pretty far in many gorgeous and lively lake towns around the country.

To maximize your retirement savings and enjoy plenty of natural beauty, consider these 12 lake towns where Zillow data shows you can live on nothing but Social Security.

Average Rent: $776

Median Home Price: $124,259

With a charming small-town vibe and proximity to Pickwick Lake, a popular boating and fishing spot, retirees can enjoy many tranquil days in this southern destination.

It can be difficult to carefully avoid money mistakes in retirement, but Alabama is considered a tax-friendly state for retirees, as Social Security is not taxed, and property taxes are very low.

Average Rent: $1,250

Median Home Price: $314,912

There is much to do in Spirit Lake — from enjoying life out on the water to strolling through the thriving downtown to simply basking in all the natural beauty.

Iowa is also considered friendly for retirees, with no taxes on Social Security, and other types of retirement income are also exempt from taxes for residents ages 55 and older.

Average Rent: $1,300

Median Home Price: $156,586

You may have trouble getting property right on Prestwood Lake in tight-knit Hartsville, but you can get pretty close for a very affordable price.

South Carolina overall is attractive to retirees for an array of reasons. Besides the warm weather, it also has extremely low property taxes, does not tax Social Security, and provides a big deduction for other forms of retirement income.

Average Rent: $700

Median Home Price: $141,882

Not far from the Missouri border, Cherokee Village has several lakes, like Lake Cherokee and Lake Thunderbird, for aspiring lake-side dwellers to choose from.

Arkansas also offers an attractive tax situation for retirees: Social Security is not taxed, and retirement account withdrawals are only partially taxed.

Average Rent: $950

Median Home Price: $119,071

Dunkirk is located in western New York along the shores of Lake Erie. While other towns in the area can be pricey, Dunkirk is a lively and stunning option that is still affordable.

While real estate far away from New York City tends to be way cheaper, New York State does have high sales and property taxes. However, Social Security benefits are not taxed and income from retirement accounts and pensions is semi-deductible.

Average Rent: $750

Median Home Price: $72,501

Danville lies along the Indiana border and is home to a man-made lake called Lake Vermillion. It’s a popular boating and fishing spot with a rich history, yet you can still nab a cheap home within walking distance of the beautiful lake.

Illinois is also a tax-friendly retirement state, as nearly all retirement income — including Social Security benefits, pensions, and income from retirement savings accounts — is exempt.

Average Rent: $641

Median Home Price: $157,885

Lockport is a top option for nature lovers hoping to stretch their Social Security checks. It offers access to Lake Fields, beautiful Bayou Side Park, and the scenic Lockport Elevated Boardwalk.

It’s also tax-friendly in many ways: there are no taxes on Social Security or in-state public pensions and property and sales taxes are low.

Average Rent: $450

Median Home Price: $204,325

While Forsyth, located on the shores of Lake Taneycomo and Bull Shoals Lake, is becoming a popular Ozark Mountain vacation destination, average rent and home prices remain low.

When it comes to retirement money, Social Security is exempt from taxes in the state and public pensions are eligible for big deductions, but other forms of retirement income are taxed.

Average Rent: $614

Median Home Price: $169,046

For small town vibes situated on the stunning banks of Lake Huron, Rogers City offers retirees affordable living and access to an array of parks and recreation.

Michigan is also a tax-friendly option for retirees. Social Security benefits are not taxed and there are deductions for other types of retirement income.

Average Rent: $675

Median Home Price: $156,417

Minnesota is known as the “Land of 10,000 Lakes,” and Fairmont — a small town located near the state’s border with Iowa — has quite a few of them.

It’s a popular boating and fishing town and while it offers lakeside living with cheap rent and home prices to boot, Minnesota is not exactly a tax goldmine for retirees as Social Security and most other types of retirement benefits are taxed.

Average Rent: $1,600

Median Home Price: $199,915

Another solid option along Lake Erie is Mentor-On-The-Lake, Ohio. It’s not far from Cleveland, giving residents easy city access, and offers plenty of natural beauty, parks, trails, and more.

While rent averages are a bit pricey (for this list at least), home prices are still below the national average. Ohio also doesn’t tax Social Security, but other retirement income may be taxed.

Average Rent: $1,225

Median Home Price: $278,110

Wisconsin Dells is located about halfway between Minneapolis and Chicago. So, if you want the tranquil beauty of lakeside living that’s not too far from major cities, this is a great option.

If you don’t mind a bit of a fixer-upper, you may even be able to find a real estate bargain near stunning Lake Delton. Wisconsin also does not tax Social Security benefits, but other retirement accounts and pensions may be taxed.

For retirees looking to earn extra income of the passive variety, investing in a lakeside home could also be a smart money move. Plenty of real estate entrepreneurs have made big bucks investing in a vacation home that they rent out when they’re out of town or away for the season.

But, if you’re just looking for a scenic place to call home after you’ve retired, you’re sure to be able to find somewhere that fits the bill in one of these charming lake towns.