6 Overlooked Midwest Spots Where Retirement Income Goes Further
Many retirees flock southward for sunshine and palm trees — and their very presence drives up the cost of living.
Fortunately, the Midwest conceals plenty of affordable hidden gems for retirees who don’t mind skipping the palm fronds. Give these six overlooked Midwest towns a fair shake before crossing them off your list.
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1. Midland, Michigan
Midland remains affordable, with rents averaging $932, per Apartments.com, fully 44% lower than the national average. Home prices average $260,029, according to Zillow.
Apart from its affordability, Midland boasts immaculate parks, trails and cultural facilities, funded by anchor employer Dow Chemical Company.
“Retirees relocating there benefit from walkable green space, a public library system and community events and amenities that most towns of this size don’t have,” explains The Broke Backpacker Jeff Bell.
Midland may not stay overlooked for long however. U.S. News and World Report ranked it the No. 1 Best Place to Retire in 2026, out of 250 cities and towns.
2. Chamberlain, South Dakota
Housing also remain affordable in Chamberlain, with rents averaging $984 and homes selling for $262,495 per Zillow. Retirement finance expert Melanie Musson with Quote.com said the appeal goes far beyond affordability.
“If boating, fishing, golfing and bird hunting are activities you enjoy, you’ll find plenty of opportunities for recreation," she said.
Indeed, the close-knit town of around 2,500 residents sits along the banks of the Missouri River and Lake Francis Case, for plenty of scenic beauty. Chamberlain is about two hours’ drive from larger Sioux Falls, for access to city amenities such as an airport.
3. Sioux Falls, South Dakota
Interested in South Dakota’s affordable living and no state income taxes, but want a more sizable city? Check out Sioux Falls instead.
Expect to pay a little more for housing, with median rents costing $1,165 and homes selling for $336,151. But that still marks a stark discount from national averages.
“Sioux Falls offers strong hospitals and learning programs through the University of South Dakota, along with a great system of parks and other community resources to help retirees remain active,” Bell said.
People have started noticing, too. Sioux Falls landed 16th on the U.S. News and World Report rankings of best places for retirees.
4. Ames, Iowa
Ames remains affordable, with rents averaging $881, per Apartments.com. But it’s far from a podunk town.
“Ames is a bustling college town, small enough for crime to stay low, but big enough for a dynamic cultural scene,” explains Musson.
Plus, Iowa doesn’t tax retirement income, helping retirees stretch their nest egg further.
5. La Crosse, Wisconsin
Want waterfront living without Miami prices? Real estate expert Cameron Walker of Clever Real Estate recommends La Crosse.
“It’s an excellent alternative to coastal towns that combines lakes, beauty and a low cost of living," Walker said. "La Crosse features beautiful bluffs, good regional healthcare and a vibrant community due to the university that keeps the town lively.”
Expect to pay $1,043 for typical rent, or $288,612 for an average home.
6. Bismarck, North Dakota
Clocking in 11th on the U.S. News and World Report rankings, Bismarck offers plenty to like for retirees.
Rents cost $1,124, making them 32% lower than the national average, per Apartments.com. North Dakota ranks 14th lowest in cost of living, according to MERIC, and charges low state income taxes, no estate taxes and homestead property tax credits for retirees.
“You can expect a low crime rate, low traffic, abundant parks, waterfront along the Missouri River, and great healthcare in this low-cost state capitol,” Walker added.
Ignore anyone who calls the Midwest “flyover country” and check out the many gorgeous but affordable places to retire inland.
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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