Many retirees assume a stretched budget means a passport. Mexico and Portugal come up often because housing and daily costs can be far lower than in most American metros. Closer to home, though, a handful of cities offer rents and home prices that look surprisingly modest.
The six places below were picked using 2026 rankings and cost data from Forbes, U.S. News, and BestPlaces. Figures shift quickly, so treat them as a snapshot rather than a promise.
Eagle Pass, Texas
U.S. News ranks Eagle Pass first on its 2026 to 2027 list of cheapest places to retire, with a population of about 28,815, a median home value of $185,757, and a median monthly rent of $632. Those numbers are hard to match on the U.S. mainland. A rent that low is closer to what people expect abroad than at home.
BestPlaces puts Eagle Pass about 20.4% below the U.S. average cost of living. A single person can expect living expenses of around $2,800 per month. It’s a small border town, so the trade is fewer big city amenities.
Decatur, Illinois
Decatur sits second on the same U.S. News list. It has a population of 69,684, a median home value of $96,124, and a median monthly rent of $655. A home value under six figures is rare almost anywhere in the country today.
The average commute is 15 minutes, and median household income is $52,207. That suggests a modest local economy, so retirees should check healthcare access and winter weather before committing. Still, for pure housing cost, few cities compete.
Midland, Michigan
Forbes describes Midland as a graceful river city of 43,000, about 130 miles northwest of Detroit. Its median home price is $247,000, about 40% below the national median. It also earned top billing elsewhere.
Midland was ranked the number one Best Place for Retirement 2026 by U.S. News & World Report for its affordability and low taxes. Forbes also points to an excellent ratio of primary care doctors per capita and an extremely low serious crime rate. The catch is simple: cold winters.
San Antonio, Texas
This is the big city on the list. Forbes calls it a spirited, fast growing South Texas city of 1.57 million, now the country’s sixth largest. That size brings hospitals, restaurants, and cultural options that smaller towns can’t match.
The median home price is $250,000, about 39% below the national median. Texas has no state income or estate tax, which helps retirees keep more of their income. Summers are hot, so that’s worth weighing.
Augusta, Georgia
BestPlaces estimates the cost of living in Augusta at about $36,800 per year for a single person. It also puts the city about 20% below the national average. That’s a useful benchmark for anyone building a retirement budget.
Zillow reported an average home sale price of $189,027 at the time of the Money Digest roundup. Other sources list higher median prices, so check current listings before relying on one number. The city also offers golf courses, arts access, and free classes at Augusta University.
Des Moines, Iowa
FinanceBuzz lists Des Moines with a median home price of $207,000, average rent of $1,100, and a cost of living 13.4% below average. That makes it one of the more affordable state capitals in the country. It’s a Midwestern city with real urban infrastructure.
Seniors can use active community centers, green spaces, and highly accessible primary care. Iowa exempts Social Security income, offers additional breaks for retirement income, and repealed its inheritance tax for 2025. Winters are cold, but the tax picture is friendly.
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