10 Underrated Southwest Towns Where You Can Retire on $1,500 or Less a Month

If you're ready to retire, but your budget isn't, you may have conflicting feelings about ending your career. After all, living on a $1,500 monthly budget in your golden years isn't easy. At just $18,000 per year, it's even lower than most Social Security benefits.

So, what can you do? One way to avoid wasting money so you can live comfortably during retirement is to pick the right spot to retire. Here are 10 charming southwest towns where you can do just that.

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New Mexico's tax policies favor potential retirees. While it's one of 11 states that tax Social Security, a vast majority of residents are exempt based on income. 

The city has a cost of living below the national average. It also has lower property taxes than other locations. Additionally, Las Cruces has a mild climate and many outdoor opportunities to exercise and stay healthy.

Brownsville, Texas has been recognized as one of the best cities for seniors with a budget of $1,500 per month to retire to, according to Insider Monkey. This city is perfect for outdoor enthusiasts, offering parks and wildlife refuges conducive to a peaceful retirement close to nature.

With a cost of living 14% lower than the national average, Brownsville should be on your radar for a stress-free retirement.

Moving to Alamogordo during retirement gives you a choice between historical venues and beautiful natural surroundings. You can explore the town's crucial role in aerospace throughout the ages at The New Mexico Museum of Space History, or go hiking in Lincoln National Forest.

The cherry on top is that Alamogordo is perfect for your $1,500 monthly budget. Median home values are around $219,398, and a two-bedroom rental only costs $988 per month according to Zillow and Apartments.com, leaving you with enough money to enjoy this affordable desert town.

Yuma is a good choice if your dream of retirement involves living in a medium-sized town with great weather and the proximity of beautiful desert vistas.

Yuma's median home values are significantly lower than the national threshold. Alternatively, Apartments.com notes that you can rent a two-bed unit in Yuma for $1,202 per month, which leaves you enough discretionary money for other pursuits.

Seniors who are passionate about history will be spoiled for choice in Muskogee. This affordable town boasts venues like the Five Civilized Tribes Museum and the Oklahoma Music Hall of Fame. It also hosts fun, family-friendly festivals, such as the Azalea Festival each year.

The good news? Investopedia reports that the city is one of the most affordable in the country, with an average home value of $140,041. You'll have enough left over from your monthly $1,500 budget to enjoy all this proud Southwestern town offers.

If you want to buy a place in Roswell, New Mexico, expect to pay 54.9% less than the national average, with the median home price sitting at $152,500, according to Best Places. Besides its low cost of living, Roswell offers residents lots of sunshine and the typical southern hospitality.

The UFO capital of the world is home to a tight-knit community that welcomes retirees with fun for the entire family, festivals, and inclusive events throughout the year.

Have you always wanted to retire to Texas but thought its cost of living would be too much for your modest budget? Wichita Falls is the answer to your needs.

Apartments.com reports that renting a two-bedroom apartment in Wichita Falls will cost only $978 per month. The below-national-average housing costs will leave you plenty of money to enjoy mouth-watering meals at Wichita Falls eateries, like Lucille's Roadhouse.

If a charming rural town is your idea of retirement heaven, head to Hugo, Oklahoma. With rental costs for a two-bedroom of only $700 a month and median home prices at $91,500, according to Best Places, the Choctaw County seat is perfect for your $1,500 monthly budget.

Despite its small size, Hugo offers plenty to do. Seniors can fish and boat on Hugo Lake or enjoy the beautiful views while hiking or birdwatching.

Deming, New Mexico, welcomes seniors on a budget with a median home price of just $225,000, according to Realtor.com. Its proximity to larger cities like El Paso, Texas, and Las Cruces, New Mexico, translates to part-time job opportunities for retirees looking to earn extra income.

Deming is great for golfers and wine connoisseurs alike. You can spend your leftover money at the Deming Municipal Golf Course or Luna Rossa Winery for the perfect, quiet retirement.

The "Cajun Capital of Texas," as Port Arthur is known, is the perfect spot in the state to enjoy fresh seafood at affordable prices. This port town's median home price is just $141,000, according to Redfin.

Port Arthur is the best spot for coastal living on a budget. In addition to its beautiful beaches, it offers outdoor pursuits such as golf at the Zaharias Memorial Golf Course and Museum, and reflection and meditation at the Buu Mon Buddhist Temple.

While a $1,500 monthly budget is modest, it still allows seniors to enjoy their golden years in charming Southwest towns such as Brownsville, Texas, or Muskogee, Oklahoma.

To avoid wasting money in retirement, seniors can do more than just move to an affordable location. They can pick an area where they can ditch the car and further save money on gas and maintenance. Every little bit helps!