10 Popular Midwest Retirement Destinations Where It's Cheaper To Rent Than Own
The Midwest may have a reputation for affordability, but this doesn’t mean it’s cheaper to own a home rather than rent in every city. Key findings from a recent MoneyLion study revealed it’s more cost-effective for retirees to rent instead of own in 10 Midwestern metros.
The initial study utilized the U.S. Census American Community Survey data to find and isolate cities with populations of at least 25,000 where 20% or more residents are ages 65 and older. For this piece, we kept all locations where the rent is $1,500 or less on average and ranked them in order of highest to lowest monthly rent.
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See which 10 popular Midwest destinations are cheaper to rent than own a home.
1. Roseville, Minnesota
Percent of population 65-plus: 22.5%
Average monthly rent: $1,497
Annual cost for homeowner: $48,709
Annual cost for renter: $39,610
Annual percent difference: 23%
2. Maplewood, Minnesota
Percent of population 65-plus: 20.1%
Average monthly rent: $1,480
Annual cost for homeowner: $45,998
Annual cost for renter: $39,506
Annual percent difference: 16.4%
3. Farmington Hills, Michigan
Percent of population 65-plus: 21.2%
Average monthly rent: $1,446
Annual cost for homeowner: $51,293
Annual cost for renter: $39,841
Annual percent difference: 28.7%
4. Gladstone, Missouri
Percent of population 65-plus: 20.5%
Average monthly rent: $1,371
Annual cost for homeowner: $41,160
Annual cost for renter: $38,979
Annual percent difference: 5.6%
5. Rapid City, South Dakota
Percent of population 65-plus: 20.7%
Average monthly rent: $1,369
Annual cost for homeowner: $49,972
Annual cost for renter: $41,475
Annual percent difference: 20.5%
6. Wooster, Ohio
Percent of population 65-plus: 20.9%
Average monthly rent: $1,358
Annual cost for homeowner: $39,108
Annual cost for renter: $37,234
Annual percent difference: 5%
7. Xenia, Ohio
Percent of population 65-plus: 20.4%
Average monthly rent: $1,342
Annual cost for homeowner: $38,953
Annual cost for renter: $37,514
Annual percent difference: 3.8%
8. Mehlville, Missouri
Percent of population 65-plus: 21.2%
Average monthly rent: $1,226
Annual cost for homeowner: $40,418
Annual cost for renter: $36,801
Annual percent difference: 9.8%
9. Dubuque, Iowa
Percent of population 65-plus: 20.7%
Average monthly rent: $1,100
Annual cost for homeowner: $38,719
Annual cost for renter: $35,018
Annual percent difference: 10.6%
10. Massillon, Ohio
Percent of population 65-plus: 20.2%
Average monthly rent: $1,037
Annual cost for homeowner: $34,729
Annual cost for renter: $32,530
Annual percent difference: 6.8%
Methodology: For this study, MoneyLion analyzed America's top retirement destinations to find out if owning or renting is more affordable. First MoneyLion isolated retirement destinations using the U.S. Census ACS by finding places with a total population of at least 25,000 and the percentage of the population ages 65 and over of at least 20%. The total households and median household income were also sourced from the U.S. Census ACS. The cost of living indexes were sourced from Sperling's BestPlaces and using the national average expenditure costs for all households, as sourced from the Bureau of Labor Statistics, the average expenditure costs can be calculated for each city. The single-family home value was sourced from Zillow Home Value Index for April 2026. Assuming a 10% down payment and using the national average 30-year fixed mortgage rate of 6.53%, as sourced from the Federal Reserve Economic Data on 6/4/26, the average mortgage can be calculated for each city. The average rental cost was sourced from Zillow Observed Rental Index. Using the average expenditure and mortgage, the total cost of living for homeowners was calculated. Using the average expenditure and rent, the total cost of living for renters was calculated. The dollar and percentage differences between the cost of living for renters and homeowners was calculated. The livability index was sourced from AreaVibes and included as supplemental information. The cities were sorted by the highest percentage of the population ages 65 and over, showing the most popular retirement destinations. All data is up-to-date as of June 4, 2026.
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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