10 Small Towns Where Retirees Can Live Like Millionaires on $38,000 a Year

A $38,000 annual budget doesn't sound like much in a lot of American cities these days. But in a handful of small towns, that same budget covers rent or a modest mortgage, groceries, and health care, and still leaves room to enjoy a river walk or a lakefront afternoon. Here are 10 worth a closer look.

Editor's note: Rent and home value figures come from Zillow. Cost of living figures come from Sperling's BestPlaces.

Jonesboro, Arkansas

Median rent: $872

Average home value: $226,988

Jonesboro carries a college-town buzz from a local university campus, and its landscape gets a lift from Crowley's Ridge, an elevated rise that threads through the area and gives the otherwise flat Arkansas Delta some topography worth walking. Waterfront parks built around a park lake add green space and trails close to downtown.

Arkansas doesn't tax Social Security benefits, though other income is taxed. The cost of living here runs about 20.9% below the national average, and regional medical facilities provide hospital and specialty care for retirees who want access without a long drive.

Canton, Ohio

Median rent: $844

Average home value: $174,287

Downtown Canton sits where the branches of Nimishillen Creek come together, giving the city a creek-threaded, tree-lined setting that softens its industrial roots. College-town energy comes from several nearby colleges, and a sports museum draws visitors through town.

Ohio doesn't tax Social Security benefits, though other income is taxed. Canton's cost of living runs about 21.3% below the national average, and a regional hospital system serves residents in and around the city, which matters for retirees planning around routine and specialty care.

Decatur, Illinois

Median rent: $892

Average home value: $104,647

Decatur centers on Lake Decatur, a reservoir formed by damming the Sangamon River, with shoreline parks and paved trails for walking and biking right in town. A four-year college and a community college campus give the city some college-town energy, too.

Illinois doesn't tax Social Security benefits, though other income is taxed. Decatur's cost of living runs about 27% below the national average, and a regional hospital system covers inpatient and emergency care for the area.

Muncie, Indiana

Median rent: $958

Average home value: $153,572

Muncie pairs college-town energy from a local university campus with waterfront parks and trails along the White River, including a paved greenway that makes walking and biking part of daily life rather than an occasional outing.

Indiana doesn't tax Social Security benefits, though other income is taxed. The cost of living runs about 26.7% below the national average, and a regional hospital system handles general medical, surgical, and emergency care for the area.

Ames, Iowa

Median rent: $956

Average home value: $301,900

A large research institution nearby keeps Ames humming with college-town energy, while the South Skunk River runs through town lined with paved trails and riverside parks, giving retirees an easy, walkable way to get outside.

Iowa doesn't tax Social Security benefits. Ames runs about 12.4% below the national average in overall cost of living, and a relatively low cost of housing compared with national norms helps fixed-income newcomers. A regional medical center based in town serves patients across a multi-county stretch of central Iowa.

Albany, Georgia

Median rent: $964

Average home value: $132,195

Albany sits along the Flint River, with parks and trails tracing its banks and giving the city a waterfront character amid southwest Georgia's quieter agricultural pace. A local college adds a bit of youthful civic energy to the mix.

Georgia doesn't tax Social Security benefits, though other income is taxed. Albany's cost of living runs about 27.3% below the national average, and a regional health system with hospital facilities serves residents with general and specialty care.

Flint, Michigan

Median rent: $964

Average home value: $64,412

Flint pairs college-town energy from multiple local colleges with an art museum anchoring a cultural campus near downtown. The Flint River flows right through the city, supporting kayaking, fishing, and a paved trail system along waterfront parks.

Michigan doesn't tax Social Security benefits. The cost of living here runs about 14.9% below the national average, and a regional hospital system based along the river serves the area.

Bismarck, North Dakota

Median rent: $927

Average home value: $378,242

Bismarck sits along the eastern bank of the Missouri River, with waterfront parks and trails and a quieter pace rounded out by college-town energy from a local college campus in the area.

North Dakota doesn't tax Social Security benefits, though other income is taxed. Bismarck's cost of living runs about 4.8% below the national average, and a regional medical center and hospital system in town serve Bismarck and the surrounding central North Dakota area.

Janesville, Wisconsin

Median rent: $993

Average home value: $296,361

Janesville's character comes from waterfront parks and trails along the Rock River running through downtown, plus a legacy of manufacturing-era architecture softened by riverside greenways and bridges connecting neighborhoods to the center of town. A local two-year college adds some college-town energy.

Wisconsin doesn't tax Social Security benefits, though other income is taxed. The cost of living runs about 17.2% below the national average, and a regional health system with hospital and clinic locations serves the area.

Erie, Pennsylvania

Median rent: $808

Average home value: $204,067

Erie is a waterfront city set along Lake Erie, with a natural bay sheltered by a recurved peninsula that gives retirees a nearby park with beaches, marshes, and trails. Several colleges in the city add college-town energy, and renovated industrial buildings mix with waterfront parks for a low-key, walkable feel.

Pennsylvania doesn't tax Social Security benefits at any income level or age. Erie's cost of living runs about 19.2% below the national average, and a regional health system and hospital network serve the area for routine and specialized care.

Bottom line

With rents and home values well below national norms, cost of living scores under the U.S. average, and states that leave Social Security benefits untaxed, a $38,000 budget covers a lot more ground in these towns than it would in a typical big city.

The right fit still depends on personal priorities, whether that's proximity to a river trail, a college-town atmosphere, or simply the lowest possible housing cost. Checking current listings and talking to a tax professional about retirement benefits is worth doing before any move.

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