12 Small Towns Where Retirees Can Live Like Millionaires on $35,000 a Year

A smart retirement plan could help you make the most of your budget without limiting where you could live. Across the country, smaller cities with rivers, lakes, walkable downtowns, and a slower pace offer housing costs and everyday expenses well below the national average, without asking retirees to give up parks, trails, health care access, or a sense of community.

Editor's note: Rent and home value figures come from Zillow's 2025 data, and cost of living figures come from Sperling's BestPlaces.

Median rent: $808

Average home value: $193,250

Erie's identity is built around its Lake Erie shoreline, where waterfront parks and trails give retirees walking and biking paths with open water views. Several local colleges lend downtown a college-town energy, with walkable streets and a revitalized bayfront district.

Pennsylvania does not tax Social Security benefits, so retirees drawing on that income keep more of it. A regional hospital system serves the area with general and specialty care. Erie's overall cost of living runs about 19.2% below the national average, which stretches a fixed retirement budget considerably.

Median rent: $844

Average home value: $162,163

Canton combines creek-side parks and trails with a strong local identity anchored by the Pro Football Hall of Fame. Several colleges in and around the city also add educational and cultural amenities and give the city a sense of place that goes beyond affordability.

Ohio does not tax Social Security benefits. Regional hospital systems serve the Canton area for retirees' medical needs. With total expenses running about 21.3% below the U.S. average, everyday costs here are notably light.

Median rent: $892

Average home value: $98,191

Decatur's setting is unusual for a small Midwestern city: Lake Decatur sits within city limits along the Sangamon River, with shoreline parks and trails for walking, fishing, and general outdoor recreation. College-town energy adds some liveliness to what is otherwise a quiet, flat, central-Illinois landscape well suited to an unhurried retirement.

Illinois does not tax Social Security benefits. A regional hospital system covers general and emergency care. Decatur's cost of living runs about 27.1% below the national average, and housing costs are a big part of that math.

Median rent: $959

Average home value: $147,303

A steady student population gives Muncie real college-town energy, supporting local shops, dining, and cultural activity. The city sits along the White River, with waterfront parks and multi-use trails for walking, biking, and paddling, while downtown keeps a walkable, historic feel and restored late-19th- and early-20th-century commercial buildings.

Indiana does not tax Social Security benefits. A regional hospital and health system based in the city offers a range of medical specialties. Muncie's cost of living sits about 26.7% below the national average, giving retirees real breathing room.

Median rent: $964

Average home value: $126,497

Downtown Albany runs along the Flint River, with a paved riverwalk, kayaking access, and a citywide greenway network connecting neighborhood parks to wooded trails. A local university campus brings college-town energy, but the overall feel is modest and unhurried, more small-city southwest Georgia than resort town.

Georgia does not tax Social Security benefits. A regional hospital and health system based in the city serves patients across southwest Georgia. Albany's cost of living runs about 27.3% below the national average.

Median rent: $964

Average home value: $62,217

Flint carries college-town energy from multiple local colleges clustered near downtown, and waterfront parks and trails follow the Flint River as it runs through the city. That combination puts green space, water views, and campus activity within reach of the same neighborhoods.

Michigan does not tax Social Security benefits. Multiple regional hospitals based in the city provide teaching-hospital-level care, including trauma and emergency services. Flint's cost of living runs about 14.9% below the U.S. average.

Median rent: $965

Average home value: $187,848

Fort Smith's preserved frontier-era historic district reflects its Old West roots, while waterfront parks and trails along the Arkansas River include a downtown riverfront park with paved paths and boat access. A local four-year college adds a layer of college-town energy to the mix.

Arkansas does not tax Social Security benefits. Regional hospital systems with multiple facilities serve Fort Smith and the surrounding River Valley area. The cost of living here runs about 23.4% below the national average.

Median rent: $1,005

Average home value: $143,651

The Cedar River runs directly through Waterloo, and a water trail system stretches along the river through town and into neighboring Cedar Falls, giving retirees access to waterfront parks and trails for walking, biking, and paddling. Nearby Cedar Falls, home to the University of Northern Iowa, adds college-town amenities and cultural activity to the broader area.

Iowa does not tax Social Security benefits. A regional hospital system serves the area for medical needs. Waterloo's cost of living runs about 24.3% below the national average.

Median rent: $1,026

Average home value: $197,799

Lake Charles sits directly on the shore of a lake, and downtown makes the most of it with a boardwalk, waterfront parks, and a sand beach along the lakefront. A local college brings some college-town energy, while casino and gaming resorts give the city a distinctive draw.

Louisiana does not tax Social Security benefits. A regional hospital system based in the city serves southwest Louisiana with acute and specialty care. The cost of living here runs about 15.9% below the U.S. average, keeping day-to-day expenses manageable.

Median rent: $999

Average home value: $137,303

Lawton sits near the Wichita Mountains in southwestern Oklahoma, with hiking trails, wildlife viewing, and lakes nearby for outdoor-minded retirees. A reservoir lake in the surrounding area adds boating and fishing options, while a four-year local college contributes some college-town energy.

Oklahoma does not tax Social Security benefits. A regional health system serves the area. Lawton's cost of living index sits about 25.3% below the national average.

Median rent: $993

Average home value: $276,815

Janesville's waterfront setting along the Rock River brings parks, trails, and a stretch of a national scenic trail for walking and biking right through the city. A local two-year campus supplies college-town energy, and a walkable historic downtown rounds out the small-city character.

Wisconsin does not tax Social Security benefits. Regional hospital systems with area clinics and an emergency and trauma facility serve local residents. Janesville's cost of living runs about 17.2% below the national average.

Median rent: $1,212

Average home value: $309,847

Schenectady's walkable historic downtown, lined with shops, restaurants, and cultural venues, sits along the Mohawk River, and a local college campus adds college-town energy to the mix. The feel is denser and more urban, with city amenities inside a compact footprint.

New York does not tax Social Security benefits. A regional hospital system serves the area for retiree medical needs. Schenectady's cost of living runs about 8.5% below the national average.

These towns show that lowering your housing costs doesn't necessarily mean giving up access to rivers and lakes, outdoor recreation, downtown amenities, or health care. What they share is below-average housing costs, states that leave Social Security benefits alone, and enough small-city character, from waterfront trails to college-town energy, to make daily life feel full rather than restricted.

A smart way to free up your retirement budget while narrowing down where to live is to see where other retirees are moving. A $35,000 annual budget won't buy the same lifestyle everywhere, but the lower housing and living costs in many of these cities could help retirees stretch a modest income further.