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4 Budget-Friendly Small Towns to Call Home

March 26, 2025 · Retirement Life
A retiree enjoys a quiet morning with tea on a white wooden porch swing.
Enjoy a quiet morning on a porch swing with tea, surrounded by lush gardens and peaceful small-town charm.

These small towns are the best for any retiree who wants some peace and quiet!

So your dream is to retire in a small town? Well, there are a lot of beautiful small towns out there, but many of them are not the most affordable places. We know that the small-town dream is advertised everywhere, but when you don’t have the money, what can you do?

Well, not all places are that expensive, and we are here to tell you more about them. Compared to the big city, any small town is cheaper, but not all of them are created the same. Some are better for seniors, and some are more suitable for younger folks.

What makes many retirees drawn to small towns is that they are quiet. A strong sense of community, light traffic, and a slower pace of life; what more can you want for your golden years?

The following ranking is based on what the Council for Community and Economic Research (C2ER) calculated for 265 urban areas. So, it is all based on the cost of living from housing and groceries to utilities, transportation, and healthcare.

small towns
Image by RaksyBH from Shutterstock

Ponca City, Oklahoma (Cost of living: 17.3% below average)

This one of the small towns was born during the Land Run of 1893. Back then pioneers decided that it was time to build a town in north-central Oklahoma, and they found this place near the Arkansas River. This was perfect because this is the main source of water the town is dependent on.

Shortly after, businessmen drilled wells in the area, and even now, Ponca Town is an oil town. Schlumberger, ConocoPhillips, and Phillips 66 are the biggest players in the energy field you can find in the area.

Now, why would you move here? Well, the housing prices are below the national median. For example, you can get your own house here for just $390,000! This is an insane price if you look at the current economy.

But living here makes you very lucky because, besides the housing prices, residents of Ponca City also pay 18.5% on various other goods and services. Groceries are 6% cheaper than the national average, and the health care discount is 11.6%.

The biggest disadvantage of this town is that it is found right in the middle of the Tornado Alley.

Dalton, Georgia (Cost of living: 12.4% below average)

This is the county seat of Whitfield County, and recently the U.S. government declared that this place has the most intact Civil War artifacts compared to any other place in the country. Maybe this is not something that might make you choose this town, but what makes it special among small towns is that here you can get a house much cheaper.

Housing is 30% lower than the national average, which means houses are generally $203,558 cheaper than in other places. And even if you don’t want to buy a home, you can rent one, and it will cost you $279 less than what most Americans pay.

At this point, Dalton is a prolific place that is mainly sustained by floor-covering manufacturers. Here are produced the most carpets, rugs, and vinyl flooring in all of the country. Even more, some call it the “Carpet Capital of the World” because here you can find over 150 carpet plants.

As you might expect, most people living in Dalton are working at the carpet factories. Considering all of this, furnishing your new home is very cheap in Dalton. There are not many small towns that can brag about this. But this is not all! The price for all utilities is 12% lower than the national average.

Georgia has implemented a flat personal income tax with a rate of 5.49% since 2024. But this should not be a problem because even if it taxes most retirement income, with the exception of Social Security payments, it also provides a generous retirement income exclusion. Furthermore, retirees should be aware that Georgia has no estate or inheritance taxes.

Richmond, Indiana (Cost of living: 17.4% below average)

When talking about small towns you should move to, we can’t exclude Richmond. This place is a cornerstone in the history of jazz. This town produced some of the first and most influential jazz records. Many of them featured legends such as Hoagy Carmichael, Duke Ellington, and Louis Armstrong.

Jazz will always be an important part of this town’s history, but right now people know Richmond for its colleges and seminaries. The Earlham School of Religion, the Bethany Theological Seminary, and Indiana University East all can be found here.

Access to Richmond is easy because it is located one hour away from Dayton, Ohio. People love this one of the small towns because housing is really cheap. For example, apartment rents are 43% lower. This means you can pay $895 per month, and you will have a place to stay. Also, if you want to purchase a home, you will pay 37.5% less compared to the national average.

Healthcare is also very accessible. We know that this is something any senior wants to hear! If you want to visit an eye doctor, you will pay half of the money compared to the national average. Also, visiting a physician is 33% cheaper.

small towns
Image by magraphy from Shutterstock

Tupelo, Mississippi (Cost of living: 18.3% below average)

There are many small towns, but this is the only one that is the birthplace of Elvis Presley. This is what makes this place famous, and if you are not a fan of the King, this is not a problem because the cultural and leisure scene of Tupelo is pretty diverse.

For example, there is the North Mississippi Symphony Orchestra if this is what you like. Also, if music is not your cup of tea, there are other amazing activities such as visiting Buffalo Park and the Zoo, the Tupelo National Battlefield, Tombigbee National Forest, or the Tupelo Automobile Museum.

Another thing that makes Tupelo famous among the small towns of America is its low cost of living. You can have a wonderful life here, and it’s all very cheap to achieve. Housing is about 36% cheaper, food is 5% less expensive, and residents save around 10% on transportation, 13.5% on healthcare, and 15% on bills.

With a population of 37,825 and a median home price of $352,333, this is the perfect place for anyone who wants to have a good life without spending a fortune.

Retiring in a small town doesn’t have to be just a dream; it can be an affordable reality! This is a comfortable way of living, and it promotes a budget-friendly lifestyle for retirees. So, if you want to relocate for retirement, you should definitely consider these places.

So what do you think about these small towns? Would you move in any of them? Or, if you are already a resident, you can tell us more about your experience there.

If you want to save more money but don’t feel motivated at all you can try this fun method. It might look silly at first glance but for many people, it works: Large Piggy Bank Coin Counting Bank with LCD Counter, 1.8L Capacity
If you’ve enjoyed this article you should also read this: The 4 Best Mountain Towns to Retire In

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