Finding Affordable Southern Retirement Towns: A Data-Driven Guide for the Middle Class

Considering a move to the American South for retirement but worried about stretching your budget? A comprehensive analysis has identified 17 best places to retire in the south that cater specifically to middle-class retirees. The research examined communities across Southern states where housing costs, daily expenses, and available benefits align with moderate retirement income.

Research Methodology and Selection Criteria

GOBankingRates conducted an extensive study analyzing retirement communities that meet strict demographic and financial criteria. Cities needed to have at least 10,000 residents with 25% or more of the population aged 65 and over. The analysis drew from U.S. Census data, Federal Reserve information, cost-of-living indexes from Sperling’s BestPlaces, Zillow Home Value Index data, and AreaVibes livability scores.

The ranking system weighted seven factors equally: average mortgage costs, average expenditure costs, livability index, percentage of households receiving Social Security, average Social Security payments, percentage receiving retirement income, and average retirement income amounts. Data collection was completed as of September 19, 2024.

The Most Affordable Options

For budget-conscious retirees, Mountain Home, Arkansas stands out with an annual cost of living of just $34,449 and average Social Security benefits of $23,209. This represents one of the most cost-effective choices among Southern retirement destinations.

Kerrville, Texas follows with a $44,075 annual cost of living and $21,751 in average Social Security benefits, offering strong value in the Texas market.

Hot Springs Village, Arkansas provides another economical option at $41,487 annually with $28,754 in average Social Security benefits—demonstrating how smaller Arkansas communities can be particularly affordable for retirees.

Mid-Range Communities Balancing Cost and Amenities

Lady Lake, Florida offers middle-ground pricing at $44,328 annually with $25,143 in average Social Security benefits. Tavares, Florida mirrors this at $44,351 with $23,898 in benefits.

Wildwood, Florida provides outdoor recreation with a $42,621 annual cost and $28,259 in average benefits. Sebastian, Florida comes in at $46,421 annually with $23,019 in Social Security support.

Englewood, Florida costs $47,686 yearly with $25,610 in average benefits, while Ormond Beach, Florida stands at $48,401 with $22,946 in average benefits.

Premium Southern Retirement Towns

The Villages, Florida represents a more established retirement community with an annual cost of living of $48,808 and average Social Security benefits of $30,704. Punta Gorda, Florida costs $49,123 annually with $28,854 in benefits.

Venice, Florida commands higher expenses at $53,436 annually but offers more developed amenities with $27,226 in average Social Security benefits. Sun City Center, Florida remains accessible at $45,845 with $26,759 in average benefits.

Murrells Inlet, South Carolina carries an annual cost of $49,996 with $26,060 in average Social Security benefits, while North Myrtle Beach, South Carolina reaches $54,861 with $27,638 in benefits.

Pinehurst, North Carolina stands among the pricier options at $57,335 annually with $28,853 in average benefits. Naples, Florida represents the premium segment at $69,932 annually, paired with the highest average Social Security benefits at $30,538.

Why Southern States Lead for Middle-Class Retirees

The South has emerged as a premier destination for middle-class retirement planning, offering a compelling combination of lower-than-average housing costs, reasonable expense structures, and strong community support systems. Many of these communities feature established retirement populations, creating vibrant social infrastructure and specialized services for older residents.

The data reveals that best places to retire in the south often balance affordability with quality of life. Florida dominates the list with 11 communities, reflecting decades of retirement market development. Arkansas and South Carolina each contribute multiple options, while North Carolina and Texas round out the selection with strong value propositions.

Key Takeaways for Retirement Planning

Retirees evaluating Southern communities should consider the relationship between Social Security income and living expenses. In most listed towns, average Social Security benefits cover 45-65% of annual costs, requiring supplementary retirement income or savings.

The geographic spread—from coastal Florida to the Ozark region of Arkansas to Texas—provides diverse lifestyle options. Communities range from bustling coastal towns to quieter inland settings, allowing retirees to choose based on climate, culture, and social preferences while maintaining financial feasibility.

Whether seeking maximum affordability or a balance between cost and community amenities, these 17 Southern retirement towns offer documented financial viability for middle-class retirees prepared with adequate savings and a clear understanding of local cost structures.