15 Underrated Southwest Towns Where You Can Retire on $1,700 or Less a Month

As retirement approaches, many Americans consider relocating to a lower-cost-of-living area where Social Security payments cover more. 

In 2026, the average Social Security payment is $2,071 a month for individuals and $3,208 for couples. If you're looking for ways to stretch your retirement dollars further and hoping for a bit more sun in your golden years as well, the Southwest has many affordable options.

Consider these 15 underrated Southwest towns where it's possible to live well on $1,700 a month or less.

Editor's note: All rental and mortgage data pulled from Zillow unless otherwise noted.

Average Rent: $1,650

Average Home Price: $378,622

Mesquite is a charming small town nestled in the Virgin River Valley. It's about an hour north of Las Vegas, so there's plenty to do and see nearby, and high rankings when it comes to affordability and safety have made it a very popular destination for retirees.

Average Rent: $1,425

Average Home Price: $295,411

Retirees who enjoy hot, dry weather and desert hikes will find bliss and affordability in Sierra Vista. Located in southeast Arizona, not far from the Mexican border, the area is known for stunning trails and top-notch bird-watching opportunities.

Average Rent: $1,456

Average Home Price: $396,161

While housing costs in this southern Utah gem are a bit pricier than others on this list, it's hard to beat the beauty and accessibility of Cedar City.

Zion National Park is less than 20 minutes away, several other national parks are within driving distance, and it's home to major draws like the Utah Shakespeare Festival.

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Average Rent: $1,500

Average Home Price: $285,037

Las Cruces boasts both affordability and endless outdoor recreation options. Whether you're into hiking, biking, golf, or just sightseeing, Las Cruces gives you the space and time to do it all, helped along by about 320 days of sunshine a year. El Paso — and its airport — is just an hour away.

A bonus: the state of New Mexico doesn't tax Social Security, and property taxes are also relatively low.

Average Rent: $1,395

Average Home Price: $204,779

Lubbock is located in northwest Texas and, as the birthplace of Buddy Holly, has a rich cultural history.

There's plenty to do and see in the area, from wine trails to local farmers' markets, and low housing costs make it a solid option for active retirees on a budget.

Average Rent: $1,600

Average Home Price: $293,868

Bullhead City is located on the Colorado River, near the state lines of both Nevada and California. Its location on the water provides plenty of opportunity for warm, sunny outdoor activities, and the area has a lower-than-average cost of living, which includes health care costs, according to Payscale.

Average Rent: $1,000

Average Home Price: $301,511

Yerington is a farming town about 70 miles south of the hustle and bustle of Reno and could be the ideal option for retirees looking for quiet, small-town living with a charming historic district.

The Walker River and Walker River State Recreation Area are both nearby, providing easy access to natural beauty as well as affordability.

Average Rent: $1,260

Average Home Price: $324,235

For retirees wary of harsh climates, Cañon City could be the perfect option as its unique location and elevation keep the weather mild year-round. The Arkansas River passes through the city, and the natural beauty of the Royal Gorge Region makes it a popular choice for outdoorsy types.

Average Rent: $1,300

Average Home Price: $390,499

Ogden isn't known for year-round warmth like the other Southwest gems on this list, but it is a great option for retirees who enjoy skiing, hiking, biking, and a range of other outdoor activities.

Other perks include a delightful historic downtown and lower-than-average health care costs.

Average Rent: $1,500

Average Home Price: $291,589

Yuma is another affordable option along the Colorado River in Arizona.

Located between Phoenix and San Diego, it's one of the sunniest cities in the country. Yuma is supposedly warm and sunny for at least 91% of the year. It's a popular destination for snowbirds and boasts an active senior community.

Average Rent: $1,500

Average Home Price: $219,569

In the southwest corner of New Mexico, Silver City has a rich history as a copper mining town, offers plenty of outdoor recreation and natural beauty, and is warm and sunny for more than 300 days a year.

In addition to a wide variety of galleries, theaters, museums, and festivals, it's also home to the Gila National Forest. It could be ideal for retirees looking to slow down and enjoy the sunshine in their golden years.

Average Rent: $1,300

Average Home Price: $168,700

Pleasant weather and affordability may be the biggest draws for new residents to this southern New Mexico city, but Roswell is perhaps best known as the site of an alleged 1947 UFO crash.

The town leans into its far-out reputation and is a solid option for retirees in search of quirky, small-town charm.

Average Rent: $1,100

Average Home Price: $220,272

Bisbee is in the Mule Mountains in southeast Arizona, not far from the Mexican border.

In addition to year-round warmth and affordability, Bisbee has a rich history as a former mining town and art hub, and visiting grandkids can find hours of entertainment touring the Copper Queen Mine.

Average Rent: $1,300

Average Home Price: $278,771

Located in southern Colorado, Pueblo offers plenty of sunshine and a milder climate than many other cities in the state. It's about 30 miles south of Colorado Springs, yet the cost of living has remained quite low in the area, with low housing and health care costs driving the trend.

Residents can stroll along the Arkansas Riverwalk or take advantage of various water activities at Lake Pueblo State Park, including fishing.

Average Rent: $949

Average Home Price: $286,839

Canyon is a small town in northern Texas, ideal for those looking for a quiet life surrounded by vast, natural beauty in retirement. It's home to the largest canyon in Texas, Palo Duro, and offers residents a healthy mix of close-knit community, affordability, and year-round warmth.

Relocating to a more affordable area is often touted as a smart money move for seniors. And while many areas that have become popular with retirees have seen big spikes in cost of living, these underrated options in the Southwest still manage to offer plenty for a moderate price.