Best Cities To Retire on a Budget of $1,800 a Month

Finding space in your budget to save and invest isn’t easy for everyone. In fact, a GOBankingRates survey found that 40% of Americans have less than $300 in savings. As such, plenty of Americans are facing a retirement where their only source of funds is a monthly check from the Social Security Administration.

Still, living on a fixed income doesn’t mean you have to miss out on a satisfying retirement. In the right place, you might discover that you can stretch your budget further and spend your golden years enjoying yourself. To help you find such a place, a GOBankingRates study identified American cities where you can realistically retire on a budget of $1,800 a month.

The study took the cost-of-living index from Sperling’s Best Places and applied it to customer expenditure data from the Bureau of Labor Statistics to find the average cost of living in the given city. The average rent for a one-bedroom apartment in each city was also sourced from ApartmentList. Locations that fell below a certain livability score on AreaVibes or had a below-average portion of the population above 65 were eliminated, and only the places offering the best combination of bills under $1,800 and strong livability for seniors were left. So, take a look to see which American cities give you a chance to retire even if you’re not rich.

• Total monthly expenditures: $1,796.25
• Livability score: 70

The average monthly rent for a one-bedroom in Salina, which is known for its ample production of wheat, is $829 — the highest of the cities on the list, and the average monthly cost of groceries is $352.27, which is also on the higher end.

_{Picture: Manhattan, Kansas}

• Total monthly expenditures: $1,791.69
• Livability score: 71

In Greensburg, retirees can expect to spend $880 on rent for a one-bedroom and $374.38 on groceries each month — the highest of any city on this list. But residents will see savings on monthly healthcare costs, which are the lowest on this list at $537.80.

_{Picture: Murrysville, Pennsylvania}

• Total monthly expenditures: $1,788.71
• Livability score: 62

Situated some 34 miles northeast of Indianapolis, Anderson is a hidden gem among the Indiana cornfields. It actually touts the highest rent on this list, with a one-bedroom costing $893 a month, but the city offers tremendous savings on groceries, which weigh in at just $340.65 a month.

• Total monthly expenditures: $1,784.66
• Livability score: 70

Home to the Green Bay Packers, this waterfront city sits on the banks of the Bay and the Fox River.  A one-bedroom here goes for $887 a month — on the higher end, but the city boasts pretty affordable healthcare: $549.51 a month. Groceries here will set you back $348.52 a month.

• Total monthly expenditures: $1,781.02
• Livability score: 60

Retirees who settle in Muskogee would find it affordable, but should note that it has the lowest livability score on this list. A one-bedroom here costs $767 a month, the cheapest yet, and groceries are as affordable as they come at $340.65 a month. Healthcare costs are actually the highest of any of these cities, averaging $673.71 a month.

• Total monthly expenditures: $1,775.09
• Livability score: 93

Marion sports the highest livability rating here by a wide margin. This city by the Cedar Rapids offers above average (in terms of this list) housing costs, with a one-bedroom going for $810 a month. Healthcare is more reasonable, priced at $599.31 a month, while groceries are on the high side at $365.76 a month. 

_{Picture: Cedar Rapids, Iowa}

• Total monthly expenditures: $1,762.34
• Livability score: 79

With a score of 79, Wausau is the second most “livable” city on this list. Situated along the Wisconsin River, this relatively small city isn’t cheap to rent in, at least not compared to other cities explored here. A one-bedroom goes for $843 a month, but residents will discover savings in other areas. For instance, groceries will set you back just $343.27, which is as cheap as it gets. Healthcare costs $575.87, which is on the low end. 

• Total monthly expenditures: $1,740.67
• Livability score: 63

Nestled in the Laurel Mountains of Pennsylvania, Johnstown is the largest city in Cambria County. A one-bedroom here costs $799 a month, which is pretty much plop in the middle of this list in terms of affordability. Groceries cost $349.64, which is on the low side, and healthcare is $592.28 a month.

_{Picture: Altoona, Pennsylvania}

• Total monthly expenditures: $1,738.18
• Livability score: 68

Known as Illinois’ “Gem City,” Quincy runs along the Mississippi River. A one-bedroom here costs $725, which is on the deep low end of this list. Groceries are a bit on the higher side at $350.02, but nothing too bad. Healthcare costs are very high though at $663.19 a month. 

_{Picture: Springfield, Illinois}

• Total monthly expenditures: $1,717.95
• Livability score: 73

As the capital of the Commonwealth of Kentucky, Frankfurt boasts many recreational activities. It’s also a college town. Here, a one-bedroom goes for $767. Monthly groceries will set you back $356.39 and healthcare costs $594.62.

_{Picture: Lexington, Kentucky}

• Total monthly expenditures: $1,704.27
• Livability score: 63

A one-bedroom in Kokoma isn’t exactly cheap at $805 a month, but residents will find great savings in other areas. For instance, groceries are just $343.65 a month and healthcare is as low as it gets at $555.37 a month.

_{Picture: Lafayette, Indiana}

• Total monthly expenditures: $1,628.16
• Livability score: 70

The most affordable city to live in with a budget of $1,800 a month is Hutchinson, which has been dubbed “Salt City” because of its salt mines. A one-bedroom here is $681 — the cheapest you can find on this list. Groceries are also on the low end of the spectrum at $348.52. Healthcare is a bit on the pricey side at $598.72, but you shouldn’t feel the impact much given how much you’re saving on rent.  

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Nicole Spector and Jami Farkas contributed to the reporting for this article. 

_{Photo Disclaimer: Please note photos are for representational purposes only and may not reflect the exact city listed.}

_{Methogolody: For this study, GOBankingRates found the best cities to retire on a budget of $1,800 dollars or less. GOBankingRates used Zillow February 2023 data to find every city in the U.S. that has an (1) February 2023 monthly rent of $900 dollars or less. GOBankingRates then used Sperling’s Best to find the cost of living index for every city on the list, looking at (2) grocery and (3) healthcare index scores. Next, GOBankingRates used data from the Bureau of Labor Statistics’ 2021 Consumer Expenditure Survey to find the annual expenditure amount for both grocery (“food at home”) and healthcare costs for people aged 65 and older in order to find how much a person 65 and over would spend on groceries and healthcare in each city on a monthly basis. GOBankingRates then added monthly housing, grocery and healthcare costs together to find where a person 65 and older could survive on $1,800 or less. In order for a city to be qualified for the study, it had to have a livabilty score of 60 or higher as sourced from AreaVibes and be one of the 1,500 largest housing markets according to Zillow . All data was collected on and up to date as of March 20, 2023.}