Retirement can be more expensive than many people expect, and choosing the right place to live can make a major difference for anyone trying to stay within a budget.
With inflation putting more pressure on fixed incomes in recent years, many retirees are reevaluating whether their current city still makes financial sense. A FinanceBuzz study on the best cities for snowbirds found that some of the most affordable and appealing retirement spots are in the South, where living costs are low and community ties tend to run deep.
The nine cities below all have median monthly rents of $910 or less, which can leave more room in the budget for groceries, medical care, and the occasional dinner out. For retirees looking to make their money go further, these are some of the South’s most attractive low-cost options.
Gadsden, Alabama
Median monthly rent: $834
Gadsden stands out as one of the South’s most affordable retirement destinations, but it offers more than just a low price tag. Set along the Coosa River, it features scenic surroundings, a downtown that is easy to explore on foot, and access to outdoor activities at Noccalula Falls Park.
Retirees also benefit from health care services at Gadsden Regional Medical Center. Alabama’s tax treatment is another advantage, since the state does not tax Social Security income, helping fixed budgets stretch a little farther.
Owensboro, Kentucky
Median monthly rent: $853
Owensboro could be a strong match for retirees who enjoy live music and a close-knit community. Located in western Kentucky, it is known as the Bluegrass Music Capital of the World and hosts festivals that attract visitors from across the region.
Day-to-day expenses are also relatively low, with groceries, utilities, and health care all coming in below national averages. Kentucky also exempts the first $31,110 of retirement income from state taxes, which is especially helpful for people relying on Social Security or a pension.
Jonesboro, Arkansas
Median monthly rent: $870
Jonesboro has become one of Arkansas’s more livable cities, helped by a growing restaurant scene and the presence of Arkansas State University, which gives the city a youthful energy. Retirees may also appreciate the low property taxes and the fact that Social Security income is fully exempt from Arkansas state taxes.
Groceries and utilities generally cost less than the national average, and St. Bernards Medical Center provides access to health care without the delays often found in larger metro areas.
Morristown, Tennessee
Median monthly rent: $876
Tennessee offers a particularly retiree-friendly tax environment because it has no state income tax, allowing Social Security, pensions, and investment withdrawals to stay in residents’ pockets. Morristown, a small city in the foothills of the Appalachian Mountains, adds scenic views along with access to hiking trails and Cherokee Lake.
The downtown area has been revitalized in recent years, with local restaurants and a farmers market contributing to the city’s appeal. For the price, it is hard to find a more picturesque place to settle down.
Florence, Alabama
Median monthly rent: $877
Florence sits in the Shoals region along the Tennessee River and has a cultural history that often surprises first-time visitors. It is the birthplace of W.C. Handy, who is widely regarded as the Father of the Blues, and the city’s musical heritage runs deep.
Its downtown is walkable and filled with locally owned restaurants, boutiques, and arts venues. Like the rest of Alabama, it does not tax Social Security income, and the overall cost of living is low. Newcomers often find the community especially welcoming.
Dothan, Alabama
Median monthly rent: $897
Dothan calls itself the Peanut Capital of the World, but the city deserves more attention as a retirement destination. Located in southeastern Alabama near the Florida and Georgia borders, it offers a warm climate and a solid range of health care options.
It also has good parks and the Wiregrass Museum of Art, giving residents access to culture and recreation without the high prices associated with larger cities.
Decatur, Alabama
Median monthly rent: $899
Decatur is a river city with a relaxed pace and practical appeal for retirees. Positioned along the Tennessee River, it is known for Point Mallard Park, which includes trails, a golf course, and one of the Southeast’s most popular water parks—an especially appealing feature if grandchildren are part of the picture.
The cost of living is low, and Decatur Morgan Hospital offers dependable medical care close to home. Alabama also has some of the lowest property taxes in the country, and homeowners over 65 may qualify for additional exemptions.
Alexandria, Louisiana
Median monthly rent: $899
Alexandria sits near the center of Louisiana, giving residents access to much of the state without the higher living costs associated with cities like New Orleans or Baton Rouge. The city features a walkable riverfront, a respected arts scene centered on the Alexandria Museum of Art, and strong local health care through Rapides Regional Medical Center.
Louisiana allows a retirement income exemption of up to $12,000 per person, and the overall tax burden for retirees is relatively modest. As in much of Louisiana, the food culture is also a major part of the appeal.
Fort Smith, Arkansas
Median monthly rent: $906
Fort Smith has a notable frontier history along the Arkansas River, and that heritage is preserved at the Fort Smith National Historic Site, which includes the old federal courthouse and jail.
Beyond its history, the city is affordable and well served, with strong health care infrastructure anchored by Mercy Hospital Fort Smith. Arkansas offers favorable tax treatment for retirement income, grocery costs are relatively low, and the city’s growing restaurant and craft brewery scene gives residents plenty of affordable ways to enjoy themselves.
Bottom line
The South has long been one of the smartest regions to consider for retirement, and these nine cities make a strong case for why. Low rent is the most obvious benefit, but the savings extend further through lower property taxes, favorable treatment of retirement income, and everyday expenses that often come in below the national average.
Another useful point to remember is that many of these cities are in states that offer property tax relief programs for seniors, which can lower housing costs even more for homeowners. Anyone hoping to cut retirement expenses without giving up quality of life should look closely at the exemptions and credits available in their preferred state before making a move.
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