12 Small Towns Where Retirees Can Live Like Millionaires on $40,000 a Year

Finding a place to retire comfortably on a small budget often means looking beyond major cities. With the median home value at around $429,156 in the United States, according to Redfin, housing can make retirement more expensive than a $40,000 fixed annual income can cover. In contrast, smaller communities cost 15% to 20% less than the national cost of living, and in some areas, housing costs are 30% lower than the U.S. average.

If you set yourself up for retirement in one of these 12 small towns, you'll get access to affordable housing, as well as regional health care systems, plenty of amenities, and lovely scenery.

Editor's note: All housing data comes from Zillow, unless otherwise stated, and all cost-of-living figures are from BestPlaces. 

Average rent: $1,250

Average home price: $349,159

This Dutch-heritage, picturesque town welcomes retirees with a walkable historic downtown, low traffic, and a strong community. Its proximity to Des Moines means that health care options aren't limited to a regional hospital.

It has low property taxes (1.40% vs. 1.54% in Iowa), according to Ownwell, affordable housing and rent, and lower-than-the-national-average utility and grocery costs.

Average rent: $1,200

Average home price: $203,340

Tupelo's cost of living is roughly 24% lower than the U.S. average, and it is reflected in the housing costs. If you're a music fan, it has the added benefit of being the birthplace of Elvis Presley.

Even if you don't care about music, you can still visit many attractions, like the Tupelo Automobile Museum or the nearby national forest.

Average rent: $880

Average home price: $129,406

A former mining town, Pittsburg has evolved into a higher-education hub for the Pittsburg State University. Besides its small-town energy, it offers attractions like an aquatic center and Lakeside Park.

Housing prices are well below the national average. Add lower grocery and health care costs, and you have an affordable haven for your retirement.

Average rent: $725

Average home price: $517,950

Do you want to retire in a scenic little town? Red Lodge, located at the foot of the Beartooth Mountains, offers unparalleled natural beauty. While home prices are on the high end, they're worth the quality of life.

Here, you can enjoy low-cost outdoor pursuits (hiking, biking, and fishing) that fit active retirees looking for adventure.

Average rent: $1,570

Average home price: $274,674

Home to Georgia Southern University, Statesboro combines Southern charm with college-town energy. It offers affordable housing and everyday expenses, along with expanded services and infrastructure.

If your main concern during retirement is health care access, Statesboro's large number of medical providers is uncommon in many towns of its size.

Average rent: $1,350

Average home price: $323,227

The "friendliest town in the South" is tucked in the foothills of the Blue Ridge Mountains. It has a mild climate, regular equestrian events, and a thriving cultural scene with many downtown museums and galleries.

Its cost of living is affordable, and it boasts excellent health care access locally and in nearby Asheville.

Average rent: $1,420

Average home price: $194,617

With a cost of living 20% lower than the New York state average, Cortland is a good retirement spot for seniors who appreciate affordability, safe neighborhoods, and walkable streets.

You'll be close to Syracuse and Ithaca, but you're unlikely to have to wander that far to enjoy four-season outdoor recreation in the Finger Lakes region.

Average rent: $1,300

Average home price: $245,093

If you move to Branson, you'll join a tight-knit community of under 15,000 residents who share a love of nature walks and the breathtaking views of the Ozarks and Table Rock Lake.

Branson residents also enjoy affordable home prices, low property taxes, and a slower pace of life, despite the town's tourist appeal, driven by the Silver Dollar City theme park.

Average rent: $900

Average home price: $157,132

Fairfield is a college town, but you wouldn't guess it. Its cost of living is 25% lower than the U.S. average. It's a safe, walkable small town with low housing costs, but you should brace yourself for cold winters.

On the upside, Fairfield is a hub of activity and entertainment, with a vibrant downtown. If you love nature and staying active, head to Rothwell Park or Rudd Park.

Average rent: $725 (from rent.com)

Average home price: $126,400

It's hard to find a tighter community than Gregory, with its 1,500 population. Besides ample opportunities to enjoy the outdoors along the Missouri River, it offers affordable housing, property taxes, and an overall cost of living that's 30% lower than elsewhere.

Despite its small size, Gregory has a unique variety of local attractions: shops, eateries, and parks.

Average rent: $725

Average home price: $130,162

Ponca City was founded as an oil town and hasn't betrayed its beginnings. Its oil fortunes have contributed to the construction of such local attractions as the Pioneer Woman statue and the Marland Mansion.

With housing prices below the national average and discounted health care and groceries, Ponca City is perfect for a stress-free retirement.

Average rent: $1,495

Average home price: $322,535

Want to retire to an affordable state capital? As part of Harrisburg, Camp Hill might be the best fit. With a population of roughly 8,000, it's got the small-town feel but won't let you get bored.

Beyond the reasonable housing costs, Camp Hill has excellent health resources and a wealth of amenities. It requires an average of $3,300 a month for a comfortable life, which aligns with your $40,000 yearly budget.

Living like a millionaire on $40,000 a year is still possible, especially in small towns where costs remain well below national averages. Many communities on this list combine affordable homes with walkable layouts and local amenities designed for seniors.

When searching for an affordable retirement town, start by looking at regional cost-of-living indexes and median home prices. Small towns located within driving distance of a midsize city offer the best balance of low costs and easy access to services that help you avoid wasting money on a fixed budget.