Affordable Midwestern Cities for Retirement on a $3,000 Monthly Budget
Many retirees find themselves entering their golden years with minimal savings, making a budget of $3,000 a month realistic. This amount usually relies heavily on Social Security benefits.
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For those retiring in the Midwest, many towns allow comfortable living within this budget. GOBankingRates analyzed data from the Social Security Administration, the U.S. Census, and Sperling’s BestPlaces to identify cities where retirees can thrive on $3,000 or less each month. Remarkably, about 70% of the original 100 cities were located in the Midwest, highlighting its affordability for seniors.
Top Affordable Cities for Retirement
Fennimore, Wisconsin
- Livability Score: 79
- Average Monthly Mortgage: $1,094
- Average Monthly Cost of Living (not including housing): $1,777
- Average Monthly Cost of Living for Homeowner Before Social Security: $2,871
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Bedford, Indiana
- Livability Score: 79
- Average Monthly Mortgage: $1,147
- Average Monthly Cost of Living (not including housing): $1,719
- Average Monthly Cost of Living for Homeowner Before Social Security: $2,866
Explore More: Here’s the Cost of Living in Every State
Northwood, Iowa
- Livability Score: 79
- Average Monthly Mortgage: $1,115
- Average Monthly Cost of Living (not including housing): $1,738
- Average Monthly Cost of Living for Homeowner Before Social Security: $2,853
Osage, Iowa
- Livability Score: 79
- Average Monthly Mortgage: $1,123
- Average Monthly Cost of Living (not including housing): $1,717
- Average Monthly Cost of Living for Homeowner Before Social Security: $2,839
Sioux City, Iowa
- Livability Score: 79
- Average Monthly Mortgage: $1,099
- Average Monthly Cost of Living (not including housing): $1,730
- Average Monthly Cost of Living for Homeowner Before Social Security: $2,829
Brooklyn, Ohio
- Livability Score: 79
- Average Monthly Mortgage: $1,097
- Average Monthly Cost of Living (not including housing): $1,702
- Average Monthly Cost of Living for Homeowner Before Social Security: $2,799
Find Out: Here’s How Much You Need To Earn To Be ‘Rich’ in Every State
Belmond, Iowa
- Livability Score: 79
Top Affordable U.S. Cities with Favorable Living Conditions
Madelia, Minnesota
- Livability score: 79
- Average monthly mortgage: $1,088
- Average monthly cost of living (not including housing): $1,635
- Average monthly cost of living for homeowner before Social Security: $2,723
Norwalk, Ohio
- Livability score: 79
- Average monthly mortgage: $1,101
- Average monthly cost of living (not including housing): $1,616
- Average monthly cost of living for homeowner before Social Security: $2,718
Lake City, Iowa
- Livability score: 79
- Average monthly mortgage: $801
- Average monthly cost of living (not including housing): $1,910
- Average monthly cost of living for homeowner before Social Security: $2,711
Belleville, Illinois
- Livability score: 79
- Average monthly mortgage: $834
- Average monthly cost of living (not including housing): $1,850
- Average monthly cost of living for homeowner before Social Security: $2,684
Austin, Minnesota
- Livability score: 79
- Average monthly mortgage: $1,039
- Average monthly cost of living (not including housing): $1,642
- Average monthly cost of living for homeowner before Social Security: $2,681
Lansing, Michigan
- Livability score: 79
- Average monthly mortgage: $879
- Average monthly cost of living (not including housing): $1,769
- Average monthly cost of living for homeowner before Social Security: $2,649
Cherokee, Iowa
- Livability score: 79
- Average monthly mortgage: $835
- Average monthly cost of living (not including housing): $1,810
- Average monthly cost of living for homeowner before Social Security: $2,645
Hillsboro, Kansas
- Livability score: 79
- Average monthly mortgage: $871
- Average monthly cost of living (not including housing): $1,767
- Average monthly cost of living for homeowner before Social Security: $2,637
Britt, Iowa
- Livability score: 79
- Average monthly mortgage: $907
- Average monthly cost of living (not including housing): $1,729
- Average monthly cost of living for homeowner before Social Security: $2,636
Sac City, Iowa
- Livability score: 79
- Average monthly mortgage: $??
- Average monthly cost of living (not including housing): $??
- Average monthly cost of living for homeowner before Social Security: $??
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Top Midwest Cities for Affordable Retirement Living Under $3,000
- Livability score: 79
- Average monthly mortgage: $783
- Average monthly cost of living (not including housing): $1,835
- Average monthly cost of living for homeowner before Social Security: $2,618
Creighton, Nebraska
- Livability score: 79
- Average monthly mortgage: $593
- Average monthly cost of living (not including housing): $2,019
- Average monthly cost of living for homeowner before Social Security: $2,612
Lemmon, South Dakota
- Livability score: 79
- Average monthly mortgage: $612
- Average monthly cost of living (not including housing): $1,943
- Average monthly cost of living for homeowner before Social Security: $2,555
Audubon, Iowa
- Livability score: 79
- Average monthly mortgage: $624
- Average monthly cost of living (not including housing): $1,880
- Average monthly cost of living for homeowner before Social Security: $2,503
North Baltimore, Ohio
- Livability score: 79
- Average monthly mortgage: $742
- Average monthly cost of living (not including housing): $1,733
- Average monthly cost of living for homeowner before Social Security: $2,475
Phillipsburg, Kansas
- Livability score: 79
- Average monthly mortgage: $565
- Average monthly cost of living (not including housing): $1,768
- Average monthly cost of living for homeowner before Social Security: $2,333
Marietta, Ohio
- Livability score: 80
- Average monthly mortgage: $1,096
- Average monthly cost of living (not including housing): $1,808
- Average monthly cost of living for homeowner before Social Security: $2,903
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Mount Pleasant, Iowa
- Livability score: 80
- Average monthly mortgage: $1,047
- Average monthly cost of living (not including housing): $1,836
- Average monthly cost of living for homeowner before Social Security: $2,883
Travis Woods contributed to the reporting for this article.
Editor’s note: Photos are for representational purposes only and might not reflect the exact locations listed.
For this study, GOBankingRates analyzed cities across the United States to find the best places to retire for under $3,000 a month. Basic information including total population, total households, household median income, and population ages 65+ were sourced from the U.S. Census American Community Survey. Cost of living indexes were drawn from Sperling’s BestPlaces, covering grocery, healthcare, housing, utilities, transportation, and miscellaneous costs. The average expenditure cost for each location was calculated using these indexes and national averages obtained from the Bureau of Labor Statistics Consumer Expenditure Survey. Home value and rental costs were compiled from Zillow Home Value Index for December 2024. The data was also used to determine mortgage calculations assuming a 10% down payment at current national average rates. This analysis aimed to rank cities based on livability, with additional consideration for average Social Security benefits sourced from the Social Security Administration. All data is current as of January 30, 2025.
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This article originally appeared on GOBankingRates.com: 25 Best Midwest Cities To Retire on $3,000 or Less Per Month
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