5 Best Places in the US To Live on a Fixed Income for Under $2.5K a Month
When everyday expenses continue to rise, living on a fixed income can be challenging. According to the Social Security Administration, the benefit for January 2026 was $2,071.
Fortunately, there are still places across the country where monthly costs remain relatively affordable. The following U.S. cities are some of the best places to enjoy retirement while keeping expenses under $2,500 a month.
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1. Cedar Rapids, Iowa
Median housing costs: $195,000
Average monthly rent: $764
Cost of living: 12.6% lower than the national average
Senior Living lists Iowa as one of the top 10 states for retirement. It is home to General Mills, Quaker Oats, Nordstrom and Collins Aerospace. Cedar Rapids is called the “City of Five Seasons,” with the fifth season representing its strong sense of community.
Retirees can enjoy the NewBo City Market where the community spirit is evident in the offerings of cooking classes, bingo, trivia nights and local artisans selling their wares. Places of interest for free retirees include: the Grant Wood Studio (Saturdays and Sundays April to December), strolling through the quaint Czech Village New Bohemia Main Street District and the walking trails at Indian Creek Nature Center.
2. Scranton, Philadelphia
Median housing costs: $138,998
Average monthly rent: $753
Cost of living: 10% lower than the national average
CNBC mentions Scranton as one of the top 10 U.S. cities with the lowest cost of living.
When retirees are ready to discover more about Scranton’s history, they can visit the Pennsylvania Anthracite Heritage Museum (seniors 65 and older cost $6), Steamtown National Historic Site (free) and the Scranton Iron Furnaces (free).
From relaxing at Nay Aug Park to bike riding on Lackawanna River Heritage Trail, there is no shortage of activities for retirees to participate in.
3. Youngstown, Ohio
Median housing costs: $57,603
Average monthly rent: $573
Cost of living: 9% lower than the national average
Youngstown is brimming with possibilities for retirees to explore, including The Ward Beecher Planetarium (free), Clarence R. Smith Mineral Museum (free) and The Butler Institute of American Art (free).
For outdoor fun, retirees can visit six different biking trails, the historic Henry Stambaugh Golf Course and the Wick Park Disc Golf Course. Mill Creek Metroparks offers disc golf, hiking and biking trails and the Gorge Trail, which has the historic Lanterman’s Mill and the Covered Bridge near Lanterman’s Falls.
4. Texarkana, Arkansas
Median housing costs: $152,087
Average monthly rent: $636
Cost of living: 11% lower than the national average
Retirees can share some special photo opportunities with family and friends. The Texas and Arkansas state line runs in front of the Texarkana federal courthouse and post office, which is the only federal post office building that is actually in two different states. The Arkansas Champion Magnolia is close to 185 years old and the largest tree in the state of Arkansas, spanning 82 feet.
For retirees who are auto enthusiasts, a visit to Four States Auto Museum will have plenty to hold their interest (free but asks for donations). Bobby Ferguson Park is a place to enjoy the outdoors. It sits on 5 acres that have jogging trails, picnic areas and a fishing pier.
5. Wichita Falls, Texas
Median housing costs: $148,320
Average monthly rent: $749
Cost of living: 19% lower than the national average
The 50 Plus Zone has a range of activities that seniors ages 50 and older can appreciate, from karaoke to exercise and oil painting classes. There is an annual fee of $40, but a few events or classes may require an additional fee.
For retirees who are nature-lovers, the River Bend Nature Center ($7 for seniors 65 and older) has a learning center with about 100 live exhibits including a butterfly and nature conservatory. Retirees can spend a peaceful afternoon at The Falls in Lucy Park, which has a 54-foot multilevel man-made waterfall. Wee-Chi-Tah Off Road Trail has three trails for biking, running and walking.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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