20 Best Small Towns Where You Can Retire on $3K a Month

A common retirement goal is living in an idyllic setting, away from traffic and noise, where sipping a glass of iced tea on the porch and waving to friendly neighbors walking by is an afternoon norm. After years of work and schedules, retirees might crave living in a small town. But is that possible on a fixed income?

It definitely is, especially if retiring in the Midwest is appealing to you. GOBankingRates looked at small towns with a population of between 1,000 and 10,000 where retirees could live on a budget of $3,000 per month with the cost of rent, groceries, healthcare, utilities, transportation and miscellaneous items factored in. The community’s livability score, as sourced from AreaVibes, helped to rank the small towns on the list.

Among the 20 small towns listed here, 15 of them sit in the Midwest, with five of them in Missouri. Retirees just might uncover a hidden gem among these small towns.

• Population: 5,482
• Livability Score: 56
• Average Rent: $1,168.78
• Average Expenditures: $1,775.94

With total average expenditures of about $2,945, Glasgow Village barely squeezes onto the list of best small towns to retire on $3,000 a month. A better livability score would have moved it further up the list.

• Population: 3,357
• Livability Score: 61
• Average Rent: $1,060.67
• Average Expenditures: $1,869.37

The drive from Mount Oliver to Pittsburgh is less than 15 minutes but seemingly a world away. The borough is largely residential, with pride of ownership in single-family homes and a sense of community found along Main Street, where businesses are locally owned and operated.

• Population: 8,287
• Livability Score: 68
• Average Rent: $919.44
• Average Expenditures: $2,070.61

Rawlins has easy access to Interstate 80, which can give retirees who like to travel easy access to the coast-to-coast highway. However, they’ll need to dip into their vacation fund to pay for it. With monthly expenditures at a nickel over $2,990 — the highest in the study — retirees have just $10 left from their $3,000 monthly budget.

• Population: 2,984
• Livability Score: 70
• Average Rent: $1,128.00
• Average Expenditures: $1,847.44

North Sioux City is in the extreme southeastern corner of South Dakota where it meets Nebraska and Iowa. It’s surrounded by water for recreation — the Missouri River, Big Sioux River and McCook Lake — as well as five neighborhood parks. With monthly expenses of about $2,700, however, the cost of living in North Sioux City is among the highest in the study.

• Population: 7,814
• Livability Score: 68
• Average Rent: $1,045.00
• Average Expenditures: $1,887.75

In Jackson, which is about 30 miles north of Milwaukee, the average person will spend just over $2,932 per month on necessities. You’ll have enough left for the brats and cheese curds that Wisconsin is famous for.

• Population: 4,553
• Livability Score: 72
• Average Rent: $1,190.00
• Average Expenditures: $1,795.11

Retirees in North Kansas City can leave the bustle of the big city behind, but still enjoy all that Kansas City has to offer about 10 minutes away. The smaller version bills itself as “Virtually Urban, Supremely Suburban,” and North Kansas City is distinguishing itself as an entertainment, dining and retail district. The average monthly expenditures are the second highest on the list at about $2,985.

• Population: 9,565
• Livability Score: 65
• Average Rent: $1,172.50
• Average Expenditures: $1,646.84

Girard has the distinction of sitting exactly halfway between the big cities of Cleveland and Pittsburgh — 72 miles each way – -but has a definite small-town feel. Retirees can kick up their heels at the Avon Oaks Ballroom, which offers dance lessons and open-floor dancing nights. Total monthly expenditures in Girard run about $2,820.

• Population: 9,101
• Livability Score: 55
• Average Rent: $900.00
• Average Expenditures: $1,726.57

Rents that average $900 per month help to keep the overall living costs in Benton Harbor on the low side at almost $2,626. The negative for Benton Harbor is the livability score — the lowest of the 20 cities in the study.

• Population: 1,561
• Livability Score: 76
• Average Rent: $1,217.67
• Average Expenditures: $1,725.99

With a nice livability score of 76, Holland also has the highest rents in the study. Residents of all ages in the community look forward each year to the Holland Strawberry Festival, which pays tribute to the region’s sweet wild strawberries. A suburb of Toledo just west of Lake Erie near the Ohio-Michigan border, Holland is about 70 miles south of Detroit and has monthly expenditures of almost $2,945.

• Population: 9,972
• Livability Score: 67
• Average Rent: $1,102.14
• Average Expenditures: $1,678.39

Willoughby Hills sits about 20 miles from Cleveland, giving retirees easy access to big-city amenities, such as the arts, museums, downtown shopping and pro sports. The town offers a more rural and slower pace of life, though — at a monthly average cost of about $2,780. After all, its motto is “Where the City Meets the Country.”

• Population: 3,189
• Livability Score: 75
• Average Rent: $995.00
• Average Expenditures: $1,856.92

Nestled along the Allegheny River, Sharpsburg is just a 10-minute drive from Pittsburgh. Retirees will pay an average of less than $1,000 in rent and overall monthly costs of about $2,950. The Sharpsburg Neighborhood Organization calls on local residents to volunteer for projects to “further the sense of place, pride and community in Sharpsburg,” according to its website — giving retirees a way to get involved and meet their neighbors.

• Population: 8,682
• Livability Score: 83
• Average Rent: $1,108.50
• Average Expenditures: $1,858.30

Retirees in Savoy will find themselves surrounded by young people, with the University of Illinois’ Urbana-Champaign campus just a few miles to the north. Monthly total expenditures run among the highest in the study at about $2,967, but the livability score is among the highest, too.

• Population: 5,372
• Livability Score: 61
• Average Rent: $856.50
• Average Expenditures: $1,768.67

Waynesville long has been a stop on Historic U.S. Route 66, and its stretch of the highway offers a look at the past with the mom-and-pop stores and cafés that dot the road. Retirees who decide to stop and plant roots in Waynesville will find an average monthly rent of less than $900 and total expenditures of just over $2,625 — one of the lowest totals in the study.

• Population: 9,527
• Livability Score: 79
• Average Rent: $1,090.00
• Average Expenditures: $1,752.90

Tomah is situated amid what is known as Cranberry Country in western Wisconsin, where the official state fruit is celebrated. Retirees can shop in the local antiques stores, buy crafts created by the local Amish community or play golf and enjoy nature. Total monthly expenditures average nearly $2,850, leaving some cash leftover for all that shopping and golf.

• Population: 2,619
• Livability Score: 85
• Average Rent: $1,213.33
• Average Expenditures: $1,721.35

The livability score in Leavenworth is the second highest on the list, and it’s easy to see why. The Bavarian village in the Cascade Mountains is a charmer, and residents of all ages enjoy great food and atmosphere, as well as plenty of events to keep them busy. The total expenditures per month aren’t far below the $3,000 mark, however, at about $2,935.

• Population: 7,983
• Livability Score: 64
• Average Rent: $717.33
• Average Expenditures: $1,826.22

In an era of soaring rent, Wahpeton is a throwback with its average monthly rent of less than $720 per month — the lowest in the study. The community straddles the Minnesota border to the east, and the total monthly cost of living in Wahpeton is the second lowest on the list at about $2,544.

• Population: 2,793
• Livability Score: 73
• Average Rent: $970.00
• Average Expenditures: $1,711.17

Knob Noster offers a mixture of new construction and older homes, all at an average monthly rent of $970. About 60 miles from Kansas City, the town is the home of Whiteman Air Force Base and has easy access to the Missouri State Fair and higher learning if retirees want to take classes. Average monthly expenses of less than $2,700 helped the rural community settle in at No. 4 on this list.

• Population: 4,407
• Livability Score: 85
• Average Rent: $950.00
• Average Expenditures: $1,867.43

The 4,400 or so residents of Beaver enjoy a small-town vibe while living just a 40-minute drive from the big-city amenities in Pittsburgh. The average rent is low at less than $1,000 per month, and the total monthly expenditures aren’t bad at about $2,817.

• Population: 8,205
• Livability Score: 86
• Average Rent: $1,039.44
• Average Expenditures: $1,781.00

A suburb less than 10 miles from St. Louis, Maplewood takes credit for having the first Green Dining District in the nation. Many of the locally owned restaurants operate under a farm-to-table philosophy and also work to reduce waste. Its livability score is the highest in the study, but its monthly total costs aren’t, at an average of about $2,820.

• Population: 7,915
• Livability Score: 76
• Average Rent: $917.59
• Average Expenditures: $1,621.82

About an hour north of Grand Rapids is Big Rapids, where small-town living comes with an affordable budget. The total average monthly expenditures of just over $2,539 are the lowest on the list. Retirees can enjoy 100 lakes, golf courses, trails, breweries, wineries and arts and annual festivals.

Disclaimer: Photos are for representational purposes only.

Methodology: For this study, GOBankingRates analyzed small towns with a [1] population between 1,000 and 10,000 people, as sourced from the U.S. Census Bureau‘s American Community Survey. For each city on the list, a number of factors were sourced; [2] Grocery cost-of-living index, [3] Healthcare cost-of-living index, [4] Utilities cost-of-living index, [5] Transportation cost-of-living index, [6] Miscellaneous cost-of-living index, all sourced from Sperlings BestPlaces and multiplied by the [7] national average expenditure costs as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey for consumers aged 65 and over to find the average expenditure costs for each city. Adding the expenditure costs to the [8] average rent cost as sourced from Zillow Observed Rental Index gives us the total monthly cost of living for each city. All cities with a total cost above $3,000 were removed, and for all the remaining cities the [9] livability index was sourced from AreaVibes. The [9] livability index was scored and weighted at 1.00, the expenditure cost was scored and weighted at 1.00, the rental cost was scored and weighted at 1.00. All scores were combined and sorted to show the best small towns to retire on $3,000 a month. All data was collected and is up to date as of Feb. 14, 2024.