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10 Charming Southern Cities To Retire on a Monthly Budget of $1,800 or Less

Find a Southern paradise to retire to with a monthly budget of $1,800 or less

By Roxana Loomes

Edited by Lauren Wellbank

Updated March 21, 2025

A budget of $1,800 a month — which translates to $21,600 a year — is less than the average Social Security payment.

You may think of it as too little for retirement, especially in highly desirable locations in the South, but you'd be surprised by how easy it is to find cities with a low cost of living, no state income tax, and warm climates if you know where to look.

In fact, you can even get ahead financially on a $1,800 budget that includes rent and other expenses.

Here are 10 cities with a rich history and Southern hospitality that you can afford on a smaller budget.

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Ocala, Florida

Average rent: $1,150 per month

Median home sale price: $278,500

Although Florida summers can be hot and humid, Ocala's beautiful nature and affordability more than make up for it. Ocala doubles as the "Horse Capital of the World" and offers equine lovers affordable housing and no income tax, helping them to avoid wasting money in retirement.

If you love the great outdoors, you have plenty of options to stay active. You can go hiking or fishing in the Ocala National Forest. To make things better, Orlando is just a drive away.

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Memphis, Tennessee

Average rent: $1,060 per month

Median home sale price: $148,300

If not paying income tax is important for your budget, look no further than Memphis for your retirement needs. Tennessee doesn't tax income, and in Memphis, rent hovers at $1,000 per month, so you'll have lots of leftover money in your $1,800 monthly budget.

Memphis also has high-quality healthcare options for retirees, which is something to keep in mind in your golden years. With its affordable cost of living and moderate climate, this city may become your dream retirement home.

Tulsa, Oklahoma

Average rent: $1,020 per month

Median home sale price: $179,100

Tulsa is a great place to retire on a modest budget. The city has lower housing costs than the national average and affordable daily expenses. In addition, Oklahoma's property taxes are low, and it doesn't tax Social Security.

Tulsa has a tight-knit community feel. It also sports many outdoor and indoor attractions and activities. You'll love Tulsa's unique feel if you've always wanted to make easy friends without living in a small town.

Baltimore, Maryland

Average rent: $1,420 per month

Median home sale price: $180,200

Baltimore is a good choice for retirees who need access to top-notch medical facilities. It's also perfect for coastal living. This city has a "big city" feel and offers all the amenities that come with it — from museums and historical sites to outdoor activities and the beach.

While Baltimore is more expensive than other locations on this list, you can still make it work if you avoid money mistakes and plan your expenses.

Decatur, Alabama

Average rent: $820 per month

Median home sale price: $187,800

Decatur is the opposite of Baltimore. It has a small-town vibe with delightful views of the Tennessee River. The beautiful natural surroundings are the perfect playground for seniors who are into outdoor pursuits like hiking and boating.

Decatur is also affordable. You can live comfortably on a $1,800 budget, especially since Alabama doesn't tax Social Security benefits.

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Biloxi, Mississippi

Average rent: $960 per month

Median home sale price: $210,400

If Baltimore seems too expensive for your budget, consider Biloxi. This city offers the same coastal experience as Baltimore, but with considerably more affordable expenses, including housing. Mississippi also exempts retirees from income tax.

Biloxi has more going for it than affordability. It's a bustling city with plenty of entertainment options. Its mild climate is conducive to spending lots of time outdoors and enjoying the beach in any season.

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New Bern, North Carolina

Average rent: $1,070 per month

Median home sale price: $239,500

New Bern's location between the Neuse and Trent Rivers is a boon for retirees who want to spend time outdoors. This affordable town also has a pleasant climate year-round.

You'll be able to stretch your budget in New Bern because North Carolina only taxes your Social Security benefits above a certain threshold. Additionally, the cost of living in New Bern is on the lower side.

Oklahoma City, Oklahoma

Average rent: $1,090 per month

Median home sale price: $187,700

Oklahoma has tax incentives for retirees, so it's easy to make Oklahoma City your new home. The city is quite affordable. Housing, grocery, and healthcare costs are low, which is perfect for your $1,800 monthly budget.

Oklahoma City is a good choice if you enjoy history and culture. Between the city's Museum of Art, the State Capitol Complex, and the Myriad Botanical Garden, this city has something for everyone.

Fredericksburg, Texas

fredericksburg farm road in autumn on a sunny day

Average rent: $1,070 per month

Median home sale price: $548,400

If you enjoy slow living and don't want to live in a big city, Fredericksburg is the place for you. This German-heritage town is within driving distance of large cities like San Antonio and Austin — so you can still visit them.

While buying a home in this Hill County jewel isn't cheap, renting is affordable. Besides, Texas doesn't tax retirement income, so covering your expenses will be easy in Fredericksburg.

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Glasgow, Kentucky

Average rent: $740 per month

Median home sale price: $167,100

This Barren County location has the kind of small-town vibe that retirees who've always wanted to live somewhere rural will appreciate. Glasgow has the perfect balance of outdoor attractions and indoor shopping and dining.

This small town is only 90 miles away from Nashville. Unlike this much larger city, Glasgow offers affordable housing options that leave the lion's share of your $1,800 monthly budget available for other expenses.

Bottom line

Southern cities are the favorites of many retirees due to their warm climate, friendliness, and eclectic mix of culture and outdoor adventure. Even though a $1,800 monthly budget is modest, it can still enable seniors to spend their golden years in comfort in places like Fredericksburg, Texas, or Biloxi, Mississippi.

Even during retirement, you can increase your financial comfort in these charming Southern cities if you decide to make extra money on the side. Depending on your interests and hobbies, the best side hustles can be anything from taking surveys to doing online tasks a few times a day.

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Author Details

Roxana Loomes

Roxana Loomes is a writer and editor based in Vancouver, Canada, with a degree in English from Michigan State University. When it comes to personal finance, she's interested in money management, budgeting, and maximizing savings through hacks, coupons, and strategic spending.