The cheapest places to retire in the US are small and mid-sized cities in the South and the middle of the country: Tupelo, Mississippi; Harlingen and McAllen, Texas; Decatur, Illinois; and Richmond, Indiana lead the latest national cost of living index, all about 20 percent below the average American city. In 8 of the 11 places below, a typical home is worth less than $210,000, against about $366,000 nationally.
That is what makes these towns interesting: the same retirement income that is tight in an expensive metro can cover a comfortable house, a full social calendar and regular trips here. Property taxes and climate are the catches, and they vary more than the headline index suggests.
The cheapest places to retire in the US, ranked by index
The Council for Community and Economic Research (C2ER) surveys prices in 283 urban areas each year. Its 2025 annual average uses the first three quarters of 2025, with 100 as the national average, and names Tupelo as least expensive. The ten lowest areas and their index values were republished in a year-end review by the Dalton-Whitfield County Joint Development Authority (February 10, 2026). Joplin, Missouri comes from a newer figure, the Missouri Economic Research and Information Center's second-quarter 2026 release.
We added three numbers to each town: the typical home value from the Zillow Home Value Index (mid-tier homes, September 2026), the county's effective property tax rate from the Tax Foundation's 2026 county report (median tax paid as a share of home value, 2024 data), and the Bureau of Economic Analysis regional price parity for the metro area (2024, released February 19, 2026).
| City | C2ER index (US = 100) | Typical home value | County property tax rate | BEA metro price level |
|---|---|---|---|---|
| Tupelo, MS | 78.8 | $216,061 | 0.70% (Lee) | n/a (not a metro area) |
| Harlingen, TX | 79.7 | $197,004 | 1.35% (Cameron) | 86.0 |
| Decatur, IL | 79.9 | $104,647 | 1.99% (Macon) | 88.4 |
| Richmond, IN | 80.9 | $160,095 | 0.77% (Wayne) | n/a (not a metro area) |
| McAllen, TX | 80.9 | $226,801 | 1.63% (Hidalgo) | 85.9 |
| Oklahoma City, OK | 81.2 | $204,979 | 0.92% (Oklahoma) | 90.4 |
| Ashland, OH | 81.6 | $235,822 | 0.86% (Ashland) | n/a (not a metro area) |
| Amarillo, TX | 81.6 | $209,627 | 1.37% (Randall); 1.41% (Potter) | 91.8 |
| Pittsburg, KS | 81.7 | $136,797 | 1.06% (Crawford) | n/a (not a metro area) |
| Salina, KS | 81.9 | $176,659 | 1.34% (Saline) | n/a (not a metro area) |
| Joplin, MO | 83.8 (MERIC, Q2 2026) | $206,480 | 0.68% (Jasper) | 85.7 |
| United States | 100.0 | $366,157 | 100.0 |
C2ER describes its index as the after-tax cost of a professional and managerial standard of living, so it is built around a working household. A retiree who owns a paid-off home or rents a small apartment will land somewhere else. Use the numbers to compare towns with each other, not to predict your bills.
The property tax column changes the picture. Decatur has the cheapest homes on the list, but Macon County's effective rate of 1.99 percent means a $104,647 home pays roughly $2,080 a year, about what a $300,000 home pays at a 0.7 percent rate. In the Rio Grande Valley, Hidalgo County's 1.63 percent and Cameron County's 1.35 percent reflect Texas's reliance on property taxes, since the state has no income tax. Tupelo, Richmond and Joplin combine low prices with rates under 0.8 percent.
Mississippi and the Texas border
Tupelo and the Rio Grande Valley. Tupelo is the cheapest city in the country on this index, and Mississippi is cheap statewide: it is 87.4 on MERIC's 2026 state index, with the lowest health care price score of any state (84.8). Harlingen and McAllen, in the Rio Grande Valley of south Texas, are both under 81 on C2ER's index, and BEA puts their metro rents at about 56 to 58 percent of the national level. We cover the Texas details in cheapest places to retire in Texas.
The cost is summer. These are hot, humid places for months, so expect the air-conditioning bill to take some of the savings. Visit in August before you decide.
The Plains and the Midwest
Decatur, Illinois and Richmond, Indiana are Midwest towns, Ashland is in Ohio, and Pittsburg and Salina are in Kansas. Joplin sits on the Missouri side of the Kansas line and its metro scores 83.8 on MERIC's index against 91.6 for the Springfield metro.
The tax angle helps here. AARP's April 2026 list of states that tax Social Security benefits is Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. Kansas and Missouri stopped taxing benefits in 2024, and Illinois, Indiana, Ohio, Oklahoma and Texas are not on the list. The details are in states that don't tax Social Security. Winters here are real, and snow removal and heating belong in your budget.
Oklahoma City and Amarillo: cheap with more services
Oklahoma City is the one large metro in C2ER's bottom ten, at 81.2, with a typical home value of about $205,000. Amarillo, at 81.6, is the biggest city in the Texas Panhandle. If you want a bigger city's airport, hospitals, restaurants and arts scene without big-city prices, these two are the compromise to look at first. You get the amenities that make retirement fun, at small-town housing costs.
Both get cold in winter and have wind and storm seasons. Both also cost far less than the 2026 state averages for Florida (100.8) and Arizona (108.6). If Florida is your first thought, read cheapest places to retire in Florida to see where it runs lower.
A second list: the lowest-cost metro areas in federal data
C2ER's survey covers only the cities that choose to take part. BEA's regional price parities cover every metropolitan area in the country, so they turn up cheap places C2ER misses. These are the lowest all-items price levels for 2024, with typical home values from Zillow for the main city.
| Metro area | BEA price level (US = 100) | BEA rents (US = 100) | Typical home value, main city |
|---|---|---|---|
| Monroe, LA | 83.6 | 42.8 | $154,730 |
| Eagle Pass, TX | 83.8 | 53.7 | $215,222 |
| Dothan, AL | 83.8 | 46.9 | $204,317 |
| Texarkana, TX-AR | 84.0 | 49.9 | $205,092 (Texarkana, TX) |
| Enid, OK | 84.3 | 51.4 | $135,534 |
| Hammond, LA | 84.5 | 48.2 | $221,162 |
| Shreveport-Bossier City, LA | 84.8 | 52.3 | $145,457 (Shreveport) |
| Florence-Muscle Shoals, AL | 84.8 | 47.7 | $214,156 (Florence) |
| Jackson, TN | 85.5 | 56.6 | $220,277 |
| Gadsden, AL | 85.7 | 53.7 | $115,329 |
The Alabama metros pair low prices with some of the lowest property taxes anywhere: the Tax Foundation puts Houston County (Dothan) at 0.29 percent and Lauderdale County (Florence) and Etowah County (Gadsden) at 0.32 percent. Louisiana is not on AARP's list of states that tax Social Security either. Rents at 43 to 57 percent of the national level mean a retiree who rents can afford a roomier place than in most of the country.
One metro we left off: Wildwood-The Villages, Florida scores 85.4 on BEA's measure, but Zillow puts the typical home in The Villages at about $392,000, above the national figure. BEA's housing number tracks rents, and the two measures point in opposite directions there, so price it on your own.
Which town fits which retiree
| If you want | Look first at | Watch out for |
|---|---|---|
| The cheapest house you can own outright | Decatur, Pittsburg, Gadsden, Enid | Decatur's 1.99 percent property tax rate |
| Low prices and low property tax together | Dothan, Florence, Tupelo, Joplin | Summer heat in the Deep South |
| Big-city airport, hospitals and restaurants | Oklahoma City, Amarillo | Wind, storms and cold snaps |
| Warm winters | Harlingen, McAllen, Eagle Pass | Long, humid summers and Texas property taxes |
| Four seasons in a small town | Richmond, Ashland, Salina | Snow removal and heating costs |
How to choose from the list
- Check the nearest hospital. A low index is no bargain if the closest cardiologist is 90 minutes away. Look at the nearest medical center for any condition you manage.
- Price your own housing. Search rentals and home listings in the actual town. The index averages housing, and your situation is specific.
- Get the county tax bill. Ask the assessor what a home at your price pays and which senior exemptions apply. The gap between 0.3 and 2 percent is thousands of dollars a year.
- Use Medicare.gov's plan finder with the ZIP code. Original Medicare is national, while Advantage and drug plans differ by county.
- Visit in the hardest season. August in Harlingen and January in Salina are different places than October.
- Count the cost of being far from family. Flights and drives are part of the budget.
The state-level picture is in cheapest states to retire, and smaller towns outside this list are covered in best small towns to retire on a budget. For a method you can repeat on any town, use the cost of living comparison guide. More US places are on the Where to Retire hub, and if you want to see how much further the same income goes overseas, start at Live Abroad.
A short list of three towns, each visited once, will teach you more than any ranking. This page is general information and not financial, tax or medical advice; talk to a professional about your own situation.
Figures as of November 2026. City indexes: C2ER via coli.org (2025 annual average) and the Dalton-Whitfield JDA republication; Joplin and Springfield from MERIC (meric.mo.gov, Q2 2026). Home values: Zillow Home Value Index, September 2026. Property tax rates: Tax Foundation, 2026 report (2024 data). Metro price levels: BEA (bea.gov, February 19, 2026 release, 2024 data). Tax list: AARP (aarp.org, updated April 29, 2026).