Retirement Retired Life

13 Charming Southern Cities To Retire on a Monthly Budget of $1,300 or Less

Leave more room for actually enjoying your retirement.

By Heather Bien

Edited by Calista Headrick

Updated Feb. 25, 2025

One of the most impactful money moves for homeowners planning for retirement is choosing a city where you can retire on a monthly housing budget that’s well under your monthly fixed income. That leaves you leftover money for eating well, enjoying your hobbies, and maybe even planning a vacation every year.

Want to start planning your golden years getaway? FinanceBuzz looked at 180 cities across the U.S. and evaluated them based on affordability. Here are the 13 best cities in the South to retire on a budget of $1,300 or less.

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Johnson City, Tennessee

Median monthly mortgage: $1,216

Located in Northeast Tennessee, Johnson City is a town in the Appalachian Mountains that’s popular with retirees for its outdoor recreation, stunning natural landscape, small-town charm, and stellar health care.

The cost of living is 15.4% lower than the national average, so not only will you enjoy low mortgage costs according to the FinanceBuzz study, but you’ll also save across the board on food, transportation, and more.

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Gadsden, Alabama

Median monthly mortgage: $1,218

Want to stay active in retirement? Head to Gadsden, where you can spend your days biking, hiking, golfing, kayaking on the Coosa River, or even rock climbing should you decide you want to embrace your adventurous side.

While housing is by far the lowest below-average cost in Gadsden, the overall cost of living is also low, coming in 20.6% less than the national average.

Dothan, Alabama

Median monthly mortgage: $1,230

Dothan has a small town, community feel where everyone knows everyone — and that’s the kind of connection that many look for in retirement. If health care access is top of mind for your retirement, Dothan also has you covered. According to the FinanceBuzz study, the city has over 3,000 health care practitioners per 100,000 people.

The cost of living is 19.6% lower than the national average in Dothan, where even groceries come in lower than what you’ll find throughout the rest of the country.

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With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹ This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>. Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.

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Florence, South Carolina

Median monthly mortgage: $1,252

If you enjoy shopping in your spare time, Florence could fit your retirement lifestyle. This small city boasts several big malls where you can find gifts for all of your grandkids — and yourself. It’s also close to Myrtle Beach, where you can take a dip in the saltwater or a stroll along the boardwalk.

While the cost of living in Florence is higher than average for the state of South Carolina, it’s still 20.4% lower than the national average.

Monroe, Louisiana

Median monthly mortgage: $1,265

For a quiet, rural-meets-suburban lifestyle with good Southern food and a simple way of life, Monroe is a solid spot. There’s also a small art district for those who enjoy engaging with history and culture.

Life is affordable in Monroe. The cost of living is 6.2% lower than the Louisiana average and 15.7% lower than the national average.

Hot Springs, Arkansas

Median monthly mortgage: $1,274

You’ll find it all in Hot Springs — a mild climate, hospitals, gorgeous landscapes, and, of course, natural hot springs. There’s also a vibrant arts community and a fabulous golf scene. In fact, there are 23 golf courses per 100,000 people, which beats the average of 11.2 across 180 different cities the FinanceBuzz team analyzed.

The cost of living in Hot Springs is 16.5% lower than the national average, and, in big news for retirees, health care costs are 6% lower than the national average.

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Morristown, Tennessee

Median monthly mortgage: $1,278

From Panther Creek State Park to the Millstone Golf Course, Morristown is a great place to be if you’re looking for a fun and active retirement. Nearby attractions also include Dollywood — a great reason for the grandkids to visit.

Life in Morristown is 17.6% less expensive than the national average. The cost of living is also 8.3% lower than the Tennessee average.

Rocky Mount, North Carolina

Aerial view of Rocky Mount Nash County North Carolina

Median monthly mortgage: $1,281

From venturing out on the water at Belmont Lake Preserve to easy access to Chapel Hill, Durham, and Raleigh, Rocky Mount is a wonderful place for those looking to make the most of their golden years.

The cost of living is 11.3% lower than the average in North Carolina and 19.3% lower than the national average, so you’ll be sitting pretty even after your mortgage has been paid.

Dalton, Georgia

Median monthly mortgage: $1,283

Whether you want to bike around Haig Mill Lake Park, take in the scenic views of the Blue Ridge Mountains, or enjoy the small-town charm at the Prater’s Mill County Fair, there are few places as idyllic to retire as Dalton.

The cost of living in Dalton is 17.3% lower than the national average and 12.5% lower than the Georgia average, which makes life in the Blue Ridge Mountains more affordable.

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SoFi has no account or overdraft fees⁵ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A.  The 30-Day Evaluation Period refers to the "Start Date" and "End Date" set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the "30-Day Evaluation Period"). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY.  Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage. and additional FDIC insurance up to $2 million on deposits is available through a seamless network of participating banks.⁶ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a> ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a> Plus, you can receive your paycheck up to 2 days early.⁸ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

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SoFi is a Member, FDIC. ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a>

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Sebring, Florida

Median monthly mortgage: $1,288

Enjoy the tax-friendly benefits of the Sunshine State and find yourself basking in a lakefront retirement in Sebring. This town on Lake Jackson boasts a population that’s over 30% seniors.

You’ll also enjoy an affordable overall cost of living in Sebring, including a cost of living that’s 17% lower than the national average and 19.5% lower than the Florida average.

Owensboro, Kentucky

Median monthly mortgage: $1,292

Find your home along the Ohio River in Owensboro, where you can enjoy an abundance of parks, bustling festivals, and a great health care system.

While Owensboro’s cost of living is about on par with the Kentucky average, it’s 18.3% lower than the national average.

Goldsboro, North Carolina

Median monthly mortgage: $1,295

Spend your golden years in Goldsboro. This small North Carolina town has a rich history and a welcoming downtown that’s full of shops and restaurants. There are also annual community festivals like Street James.

In Goldsboro, you’ll enjoy a cost of living that’s 17.8% lower than the national average and 9.7% lower than the North Carolina average.

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Decatur, Alabama

Median monthly mortgage: $1,297

Decatur is a bustling small town that has a rich arts scene and an active outdoor recreation community. It’s the perfect place for those who aren’t necessarily looking to slow down but, instead, want to embrace a more joyful way of life.

The cost of living in Decatur is 16.9% lower than the national average, though it’s pretty much on par with the average for the state of Alabama.

Bottom line

AARP reports that about 25% of seniors move to a different state in retirement. If you want to stretch your retirement dollars further during a move, you should look beyond the housing costs.

There are other financial decisions that will impact your budget in a location, including how Social Security is taxed, the cost of health care, grocery costs, and the overall cost of living.

Looking at the full financial picture before making a decision will impact your ability to live out your golden years comfortably.

More from FinanceBuzz:

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Author Details

Heather Bien

Heather Bien is a writer covering personal finance and budgeting and how those relate to life, travel, entertaining, and more. With bylines that include The Spruce, Apartment Therapy, and mindbodygreen, she's covered everything from tax tips for freelancers to budgeting hacks to how to get the highest ROI out of your home renovations.