16 Best Southern Cities To Retire on a Budget of $2,000 a Month
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You’re planning to retire and have your sights set on a warm climate. Specifically, you want to settle down in the South, but you need to find new hometown that’s affordable on a fixed income.
As of February 2023, the average monthly social security payment is $1,693.88, according to the Social Security Administration. A GOBankingRates study found this is actually lower than the average cost of a one-bedroom apartment in the U.S. — $1,996 per month.
Of course, housing isn’t the only expense you need to think about. The average annual cost of Of course, housing isn’t the only expense you need to think about. The average annual cost of groceries in the U.S. is $4,497 — $374.75 monthly — while healthcare expenses average $7,030 per year — $585.83 monthly. Additionally, the average cost of monthly expenses is $2,956.12, so you’ll want to keep that in mind when creating your budget.
In addition to affordability, it’s also important choose a Southern town with a sizable 65 and older population. The U.S. average is 16%, so remember this, as it will be important to your social life. Ready to explore GOBankingRates’ findings? Here are the best Southern cities to retire in if you have a lower budget.
16. Johnson City, Tennessee
- Monthly expenditures: $1,992.70
- Percent of population 65 and older: 15.3%
- Livability: 72
Johnson City boasts an average monthly cost of groceries of $356.39. The cost of a one-bedroom apartment in the area is relatively affordable, averaging at $1,070 per month, which is significantly lower than the national average of $1,996 per month. However, the average healthcare expense in Johnson City is slightly higher than the national average, at $561.81 per month compared to $585.83 per month.
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15. Little Rock, Arkansas
- Monthly expenditures: $1,577.10
- Percent of population 65 and older: 13%
- Livability: 68
A major plus, the average cost of groceries in Lubbock is the lowest on the list at $378.47 per month. The average monthly cost of a one-bedroom apartment is $746.50 — still just a fraction of the $1,927 per month national average — and the average healthcare expense is $452.12 per month — higher than the national average of $431.42 per month. However, both of these numbers are the priciest of all five cities.
14. Enid, Oklahoma
- Monthly expenditures: $1,986.02
- Percent of population 65 and older: 14.8%
- Livability: 69
Monthly healthcare costs in Enid are relatively high compared to the rest of the list, averaging $645. The average rent on a one-bedroom apartment — $993 per month — and groceries — averaging $348.52 per month.
*Pictured Oklahoma City, Oklahoma.
13. Nacogdoches, Texas
- Monthly expenditures: $1,969.59
- Percent of population 65 and older: 11.5%
- Livability: 64
Residing in Nacogdoches comes with the perk of a low monthly grocery cost, averaging $344.02, as well as reasonable healthcare expenses, averaging $622.74 per month. However, renting a one-bedroom apartment in the area can be somewhat expensive, with an average cost of $1,003 per month.
12. Harlingen, Texas
- Monthly expenditures: $1,949.78
- Percent of population 65 and older: 15%
- Livability: 66
If you have a monthly budget of $2,000, Harlingen is an excellent Southern city to consider retiring in. The cost of renting a one-bedroom apartment in the area is decent, averaging $1,027 per month. Additionally, the average monthly grocery cost in Harlingen is reasonable, at $337.28, as well as the average monthly healthcare cost, which is $585.83.
11. Lufkin, Texas
- Monthly expenditures: $1,940.71
- Percent of population 65 and older: 15.7%
- Livability: 64
Renting a one-bedroom apartment in Lufkin is well-priced, averaging $920 per month. Moreover, the average monthly grocery cost in Harlingen is quite good at $342.90, and the average monthly healthcare cost is also reasonable, at $677.81.
10. Parkersburg, West Virginia
- Monthly expenditures: $1,933.79
- Percent of population 65 and older: 21%
- Livability: 65
Renting a one-bedroom apartment in Parkersburg costs $890. Additionally, the average monthly grocery cost and healthcare cost in the area are both fantastic for retirees, averaging $362.38 and $681.91 per month, respectively.
9. Lake Charles, Louisiana
- Monthly expenditures: $1,929.14
- Percent of population 65 and older: 15.6%
- Livability: 70
To rent a one-bedroom apartment in Lake Charles, the cost is $984. Retirees can also enjoy great average monthly grocery costs of $348.14 and average monthly healthcare expenses of $596.96 in the area.
8. Edinburg, Texas
- Monthly expenditures: $1,901.73
- Percent of population 65 and older: 8%
- Livability: 77
Renting a one-bedroom apartment in Edinburg costs $987, and the city has an excellent Livability score of 77. Retirees can also enjoy good average monthly grocery costs of $342.52 and average monthly healthcare expenses of $572.36 in the area.
7. Fort Smith, Arkansas
- Monthly expenditures: $1,900.98
- Percent of population 65 and older: 16%
- Livability: 61
Renting a one-bedroom apartment in Fort Smith costs $1,001. Retirees can also take advantage of the great average monthly grocery cost of $351.14 and the average monthly healthcare cost of $548.93 in the area.
6. Richmond, Kentucky
- Monthly expenditures: $1,898.46
- Percent of population 65 and older: 10.2%
- Livability: 76
Renting a one-bedroom apartment in Richmond costs $930. Additionally, the average monthly grocery cost and healthcare cost in the area are both good for retirees, averaging $363.88 and $604.58 per month, respectively.
5. Russellville, Arkansas
- Monthly expenditures: $1,879.29
- Percent of population 65 and older: 21%
- Livability: 65
The cost of renting a one-bedroom apartment in Russellville is $986. Retirees can also benefit from an average monthly grocery cost of $351.14 and the average monthly healthcare cost of $541.90 in the area.
4. Port Arthur, Texas
- Monthly expenditures: $1,858.96
- Percent of population 65 and older: 12.7%
- Livability: 64
Renting a one-bedroom apartment in Port Arthur costs $952. Retirees can also take advantage of the great average monthly grocery cost of $331.28 and the manageable average monthly healthcare cost of $575.87 in the area.
3. North Little Rock, Arkansas
- Monthly expenditures: $1,834.17
- Percent of population 65 and older: 16%
- Livability: 69
Renting a one-bedroom apartment in North Little Rock costs $944. Additionally, the area boasts a great average monthly grocery cost of $350.77 and a decent average monthly healthcare cost of $538.97, which are both great for retirees.
2. Muskogee, Oklahoma
- Monthly expenditures: $1,739.36
- Percent of population 65 and older: 14.8%
- Livability: 60
Renting a one-bedroom apartment in Muskogee costs $725, which is affordable for retirees. The area also offers great benefits such as an excellent average monthly grocery cost of $340.65 and an average monthly healthcare cost of $673.71, which is within a manageable range for retirees.
1. Frankfort, Kentucky
- Monthly expenditures: $1,711.34
- Percent of population 65 and older: 14.6%
- Livability: 73
Frankfort offers a significant advantage with its low average cost of groceries, which amounts to $356.39 per month. Additionally, the average monthly cost for a one-bedroom apartment is only $760, which is a small fraction of the national average of $1,996 per month. However, the average healthcare expense in Frankfort is slightly higher than the national average, at $594.62 per month compared to $585.83 per month.
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Methodology: For this study, GOBankingRates found the best southern cities to retire on a budget of $2,000 dollars or less. GOBankingRates used Zillow March 2023 data to find every city on the east coast (FL, GA, ,NC, SC, VA, WV, AL, KY, MS, TN, AR, LA, OK, AND TX) that has an (1) March 2023 monthly rent of $1,100 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 April 25, 2023.
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