5 Great Places To Retire on $4,000 a Month or Less

By Eric Rosenberg

UPDATED July 02
|
7 MINUTE READ

If your Social Security and other retirement savings allow you to retire on $4,000 per month, you're likely in good shape to retire in many cities nationwide or abroad. Aside from the most expensive markets, $48,000 annually is enough for a comfortable retirement for many retirees.

So, if you're near retirement or already retired, how do you decide where to spend your golden years? If you're interested in leaving your current hometown, narrowing your list down to the best places to retire on $4,000 per month can be challenging. Our team looked at dozens of cities and rural areas to identify some of the best options, focusing on cost of living, weather and lifestyle. Here's a look at some of our favorite places to retire on $4,000 per month or less.

The Best Places To Retire on $4,000 Per Month

• Best for Great Food and Outdoor Adventures: Albuquerque, New Mexico
• Best for Stretching Your Dollars in a Major Metropolitan Area: Cincinnati, Ohio
• Best for Nearby Beach Access: Sarasota, Florida
• Best for Small City Living With Big City Conveniences: Waco, Texas
• Best for Affordable Living in the Rockies: Colorado Springs, Colorado

1. For Great Food and Outdoor Adventures: Albuquerque, New Mexico

• Cost of living: 7% below national average¹
• Median home price: $395,000¹
• Median monthly rent: $1,201¹
• Metro population: 919,543²
• State taxes: Large exemption for residents age 65 and older³

Why retire in Albuquerque?

If you dream of floating down a river, hiking to the top of a mesa at sunrise or exploring a seemingly endless supply of vistas, forests and unique mountain terrain, New Mexico could be for you. With generally dry weather, the state features pleasant temperatures much of the year, though summer can be quite hot. The food scene is also excellent, leaning heavily on Mexican cuisine and New Mexico's famous Hatch chiles.

Plus, Albuquerque is one of the cheapest cities in the United States for cost of living.⁴The average home costs $395,000 and the median rent is $1,201,¹ which is quite affordable when you're looking to retire on $4,000 per month.

If you want to get out of town, Santa Fe is only about an hour's drive and features amazing restaurants and outdoor activities. You won't want to leave town in October, when the annual Albuquerque International Balloon Fiesta takes place. There's a very good reason New Mexico is known as the Land of Enchantment, and the affordable cost of living makes it a standout choice for retirement.

2. For Stretching Your Dollars in a Major Metropolitan Area: Cincinnati, Ohio

• Cost of living: 4% below national average⁵
• Median home price: $365,690⁵
• Median monthly rent: $1,112⁵
• Metro population: 2,265,051²
• State taxes: Social Security is not taxable; low tax rate on other income³

Why retire in Cincinnati?

Ohio features several of the least expensive cities nationwide, and Numbeo ranks Cincinnati as the least expensive of the large cities it tracks in the United States.⁴ The median home sale price is $365,690, so living mortgage-free is a real possibility for those retiring with $4,000 per month. If you'd rather rent, the median cost is $1,112 per month in the Cincinnati area.⁵ Costs are about 40% less than in New York City, which ranks as the most expensive city in the U.S.⁴

The Cincinnati metropolitan area is home to 2.27 million residents,⁵ so you'll likely find whatever you're looking for, including professional sports, restaurants and shopping. It has a zoo, music hall, several impressive museums and plenty of parks. With a nearby airport serving more than 50 nonstop destinations and service from some of the nation's largest airlines, friends, family and vacation destinations are rarely more than a flight or two away.⁶

3. For Nearby Beach Access: Sarasota, Florida

• Cost of living: 6% above national average⁷
• Median home price: $548,310⁷
• Median monthly rent: $1,667⁷
• Metro population: 891,411²
• State taxes: No state income tax³

Why retire in Sarasota?

Sarasota sits on Florida's Gulf Coast, offering warm weather all year and plenty of options to get your feet in the sand. Siesta Key is a coastal island with idyllic neighborhoods and the excellent Sarasota Beach. Sarasota County is home to about 469,000 residents, of which nearly 40% are 65 or older.⁸ Retirees in Sarasota can easily find a community of retirees, as well as plenty of options for healthcare and year-round outdoor recreation.

Housing prices are a bit higher than in other cities on this list, with a median home sale price of $548,310 and a median rent of $1,667 per month.⁷ But with no state personal income tax³ and plenty of low-cost activities in the region, you may find it offers a great mix of affordability and entertainment.

Sarasota ranked as the top city to retire two years in a row (2021 and 2022), according to U.S. News & World Report.⁹ If the housing costs work for your budget, Sarasota offers an excellent lifestyle for Americans past their working years.

MORE PLACES TO RETIRE FOR: $1,500, $3,000, $5,000, $6,000

4. For Small City Living With Big City Conveniences: Waco, Texas

• Cost of living: 11% lower than national average¹⁰
• Median home price: $348,105¹⁰
• Median monthly rent: $1,058¹⁰
• Metro population: 283,885²
• State taxes: No state income tax³

Why retire in Waco?

If you want nice weather most of the year, a walkable downtown and affordable living, Waco should be on your list. It's located midway between Dallas and Austin, so if there's something you want that's not available in Waco, you won't have to drive far to reach a major airport, sports arena or concert venue. It's also very affordable, with a cost of living 11% lower than the national average.¹⁰

But don't associate low costs with a mediocre lifestyle. The city has plenty of Texas charm and was recently made more famous by the TV show "Fixer Upper," highlighting how you may be able to find an excellent home with value pricing.

There's no state income tax, so Social Security and other retirement income isn't taxed by the state.³ The median home sale price is just over $348,000, and the median cost for a rental is $1,058 per month.¹⁰ Waco has a little something for everyone, making it a nice place to live and entertain the grandkids when they come to visit.

5. For Affordable Living in the Rockies: Colorado Springs, Colorado

• Cost of living: 5% above national average¹¹
• Median home price: $497,808¹¹
• Median monthly rent: $1,514¹¹
• Metro population: 765,424²
• State taxes: Social Security is deductible for residents 65 and older; low, flat state income tax rate³

Why retire in Colorado Springs?

Colorado Springs could be a good option if you want to live in a smaller city with access to winter and summer recreation. Located about an hour from Denver, Colorado Springs is part of Colorado's popular Front Range, offering proximity to mountain hiking and skiing destinations. Garden of the Gods, Cheyenne Mountain Zoo, Seven Falls, Cave of the Winds and Palmer Park are top spots for nature lovers. Colorado Springs is home to more than 14,000 acres of parkland and 150 miles of trails.¹²

Living costs are attractive for those on a fixed income. Homes in Colorado Springs cost about $498,000, and the median rent is $1,514 per month.¹¹ Colorado Springs could bring the right balance if you're looking to live in Colorado and want a more budget-friendly option than Denver and pricey mountain towns.

Are You Ready To Retire on $4,000 Per Month?

The United States is home to more than 19,500 incorporated towns and cities, plus many rural areas.¹³ If you want to enjoy retirement on $4,000 per month or less, you have plenty of options. Whether it's one of these top five picks or anywhere else, it's certainly possible to enjoy a retirement on $4,000 per month.

Eric Rosenberg is a financial writer, speaker and consultant based in Ventura, California. He is an expert in banking, credit cards, investing, cryptocurrency, insurance, real estate, business finance and financial fraud and security. His work has appeared in many online publications, including Time, USA Today, Forbes, Business Insider, NerdWallet, Investopedia and U.S. News & World Report. Connect with him and learn more at EricRosenberg.com.

Sources/references

1. https://www.payscale.com/cost-of-living-calculator/New-Mexico-Albuquerque

2. https://www2.census.gov/programs-surveys/popest/datasets/2020-2022/metro/totals/cbsa-est2022.csv

3. https://www.kiplinger.com/retirement/602202/taxes-in-retirement-how-all-50-states-tax-retirees

4. https://www.numbeo.com/cost-of-living/region_rankings.jsp?title=2024&region=019

5. https://www.payscale.com/cost-of-living-calculator/Ohio-Cincinnati

6. https://www.cvgairport.com/nonstop-destinations/

7. https://www.payscale.com/cost-of-living-calculator/Florida-Sarasota

8. https://www.census.gov/quickfacts/fact/table/sarasotacityflorida,sarasotacountyflorida/PST045223

9. https://money.usnews.com/money/retirement/articles/what-makes-sarasota-the-best-place-to-retire

10. https://www.payscale.com/cost-of-living-calculator/Texas-Waco

11. https://www.payscale.com/cost-of-living-calculator/Colorado-Colorado-Springs