Cities in the U.S. Where You Can Retire On A Million Dollars

Retiring on a mere million dollars in this day and age is impossible in high cost of living (HCOL) places like San Francisco or NYC. Plenty of U.S. cities still make that amount workable though. In low cost of living (LCOL) areas in the mid-west or in the south, a paid-off modest home and steady interest or dividends from the rest of your million can stretch much further than you might expect. Whether you’re working toward that first million or already close, knowing which cities offer the most breathing room can help you plan your next move.

Key takeaways

• A million dollars lasts much longer in LCOL cities where housing, taxes, and daily expenses stay low.
• Paying off a modest home and living on interest or dividend income can cover most basic retirement budgets.
• Total-market ETFs, dividend ETFs, or a mix of both can provide steady income that aligns well with LCOL living.

Best cities in the U.S. to retire on a million dollars

1. Brownsville, Texas

Median home price: Around $250,000
Income taxes: No
Population: About 192,000

Brownsville is often ranked as the lowest cost of living city in the country, which gives retirees a ton of breathing room. Housing is still inexpensive compared to most of the U.S., and many everyday expenses come in well below the national average.

If you buy a modest home in cash, most of your million can stay invested and working for you. Interest or dividend income can cover a simple lifestyle here, especially if you keep cars, entertainment, and other extras on the modest side.

2. Wichita Falls, Texas

Median home price: Around $145,000
Income taxes: No
Population: About 102,000

Wichita Falls offers very low housing costs and a quiet, small city feel. It is one of the few places where single family homes regularly list well under the national median, which makes a paid-off property very realistic for someone with a million saved.

With no state income tax and cheap real estate, a retiree can leave most of their portfolio in ETFs or dividend funds and draw from the income. Even a conservative withdrawal rate goes a long way here, especially if you are comfortable with a simple lifestyle.

3. Evansville, Indiana

Median home price: Around $205,000
Income taxes: Yes
Population: About 115,000

Evansville is one of the more affordable metros in the Midwest, with home prices that are still far below many other regions. You get access to healthcare, shopping, and basic amenities without taking on big city price tags.

Retiring here on a million dollars is very doable if you keep your housing modest. A paid-off home and a portfolio focused on interest and dividends can cover your core bills and leave room for travel or hobbies each year.

4. Dayton, Ohio

Median home price: Around $185,000
Income taxes: Yes
Population: About 136,000

Dayton has some of the lowest housing prices among mid sized U.S. cities, along with decent access to healthcare and services. It offers parks, museums, and an aviation history scene without the cost that comes with larger Ohio cities.

For a retiree with a million dollars, the math is friendly. Owning a home outright and living on a mix of dividends and interest makes it realistic to keep your annual spending in check while still having money for fun and family.

5. Detroit, Michigan

Median home price: Around $95,000
Income taxes: Yes
Population: About 646,000

Detroit is unusual in that home prices inside the city limits can still be extremely low compared to the rest of the country. Retirees willing to pick the right neighborhood can lock in housing at a fraction of what they would pay elsewhere.

That leaves most of the million free to sit in an ETF or dividend portfolio. Even with Michigan state income tax, investment income can comfortably handle a lean retirement budget if you avoid taking on too many extra fixed expenses.

6. Cleveland, Ohio

Median home price: Around $135,000
Income taxes: Yes
Population: About 364,000

Cleveland offers low housing costs along with big city amenities like sports, healthcare systems, and cultural attractions. For retirees who want more to do without paying coastal prices, it hits a good middle ground.

Buying a modest home and keeping property taxes manageable lets your million focus on generating income. A reasonable withdrawal rate or dividend strategy can fund a comfortable but not flashy lifestyle here for many years.

7. El Paso, Texas

Median home price: Around $250,000
Income taxes: No
Population: About 682,000

El Paso has some of the most affordable housing costs relative to local income in the entire country, and Texas does not tax income. That combination gives retirees a lot of value for every dollar they spend.

If you own your home and keep your lifestyle simple, a million dollars invested in a mix of broad market and dividend ETFs can generate enough income to cover most of your annual costs. The dry climate and large city services make it appealing for many people.

8. Memphis, Tennessee

Median home price: Around $190,000
Income taxes: No
Population: About 607,000

Memphis remains one of the more affordable larger cities in the South, with relatively low home prices and no state income tax on wages. You get a major metro area, music and food culture, and access to medical centers without paying big city housing costs.

A retiree with a million dollars can reasonably expect to pay off a home and then live mostly on portfolio income. As long as you budget carefully and avoid lifestyle creep, the numbers work out for a long retirement here.

9. Columbus, Georgia

Median home price: Around $260,000
Income taxes: Yes
Population: About 201,000

Columbus sits on the Chattahoochee River and offers a lower cost of living than many other cities in Georgia. Housing is still under the national median, and day to day expenses are reasonable, especially if you own your home.

Retiring here on a million dollars works best if you keep your fixed costs tight. A mix of dividend income and a 4 percent withdrawal strategy can handle a basic budget, with room for occasional travel or spoiling grandkids.

10. Louisville, Kentucky

Median home price: Around $260,000
Income taxes: Yes
Population: About 643,000

Louisville gives you a larger city feel at a much lower cost than many other metros of similar size. Home prices are still moderate, and the city has a strong healthcare presence along with plenty of events and amenities.

For someone retiring with a million dollars, Louisville can be a good balance between affordability and things to do. Owning a reasonable home and living on investment income can support a comfortable, middle of the road retirement without stretching every dollar.

11. Albuquerque, New Mexico

Median home price: Around $320,000
Income taxes: Yes
Population: About 563,000

Albuquerque offers desert landscapes, outdoor recreation, and a lower cost of living than many western cities. Housing stays relatively affordable compared to surrounding states, which helps retirees protect more of their investment portfolio.

Retiring on a million works here if you keep housing modest and avoid high fixed expenses. A balanced ETF or dividend portfolio can reliably cover most annual spending for a simple lifestyle.

12. Augusta, Georgia

Median home price: Around $215,000
Income taxes: Yes
Population: About 203,000

Augusta remains one of Georgia’s most affordable cities, with lower housing prices and steady access to healthcare and services. Retirees like the mild winters and slower pace of life.

A paid-off home plus income from dividends or a 4 percent withdrawal rate can comfortably support a modest retirement here, especially if you keep discretionary spending under control.

13. Cookeville, Tennessee

Median home price: Around $300,000
Income taxes: No
Population: About 36,000

Cookeville offers a small-city feel with plenty of access to state parks, lakes, restaurants, shopping, and a central location in Tennessee. Nashville is just over an hour west and Knoxville is an hour east. Housing is still reasonable compared to many parts of the state, and Tennessee has no income tax.

Retirees with a million dollars can buy a modest home and lean on dividend or ETF income for their annual budget. Even though home prices are rising in cities like Cookeville across the country, many parts of this area of TN stay affordable enough for your savings to last a long time.

14. Gainesville, Florida

Median home price: Around $310,000
Income taxes: No
Population: About 145,000

Gainesville is more affordable than many other Florida cities, thanks to lower housing prices and a strong healthcare network. It avoids the extreme cost spikes seen along the coasts.

A retiree with a million dollars can make the numbers work here, especially if you avoid rising rent costs by owning your home outright. Florida’s lack of income tax helps stretch your withdrawals further.

15. Grand Rapids, Michigan

Median home price: Around $295,000
Income taxes: Yes
Population: About 200,000

Grand Rapids blends affordability with a growing downtown, breweries, and a solid healthcare presence. Housing costs remain manageable compared to other mid-sized U.S. cities.

Retiring here on a million dollars is workable if you keep your housing budget under control. A mix of interest and dividend income can support a comfortable, simple lifestyle.

16. Indianapolis, Indiana

Median home price: Around $260,000
Income taxes: Yes
Population: About 882,000

Indianapolis offers big-city amenities at a lower overall cost, especially when it comes to housing and healthcare. It’s one of the more affordable large metros in the country.

Buying a modest home and keeping lifestyle costs steady lets a million-dollar retirement work here. Investment income can cover the basics while still allowing room for travel or hobbies.

17. Oklahoma City, Oklahoma

Median home price: Around $230,000
Income taxes: Yes
Population: About 702,000

Oklahoma City continues to rank as one of the most affordable large cities, with low housing costs and predictable expenses. Healthcare and transportation also stay below national averages.

A retiree with a million dollars can comfortably settle here with a paid-off home and steady investment income. Even conservative withdrawal rates line up well with typical yearly costs.

18. Pittsburgh, Pennsylvania

Median home price: Around $230,000
Income taxes: Yes
Population: About 302,000

Pittsburgh offers a mix of affordability, healthcare access, and amenities like parks, museums, and sports. Housing is far cheaper here than in most northeastern metros.

Retiring on a million dollars works well if you buy a modest property and stick to a reasonable budget. Dividend-focused portfolios can cover many retirees’ yearly spending needs.

19. Richmond, Virginia

Median home price: Around $350,000
Income taxes: Yes
Population: About 232,000

Richmond is more affordable than many East Coast cities while still offering strong arts, history, and dining scenes. Housing can be reasonable depending on the neighborhood.

A retiree with a million dollars can make it work by choosing a modest home and relying on investment income for annual expenses. Healthcare access is strong, which appeals to many retirees.

20. Rochester, New York

Median home price: Around $210,000
Income taxes: Yes
Population: About 210,000

Rochester is one of the few affordable cities in New York State, with low home prices and a slower pace of life. Winters can be intense, but the cost savings offset it for many.

Retiring on a million dollars is realistic if you buy a home and keep major expenses under control. Your investment income can cover most yearly spending without draining the portfolio too quickly.

21. Sioux Falls, South Dakota

Median home price: Around $320,000
Income taxes: No
Population: About 215,000

Sioux Falls combines affordability with strong healthcare and outdoor recreation. South Dakota’s lack of income tax helps retirees keep more of what they withdraw.

A million dollars stretches well here as long as housing costs stay modest. Interest or dividends can support a simple lifestyle with room for travel or leisure activities.

22. Spokane, Washington

Median home price: Around $420,000
Income taxes: No (Washington has no income tax)
Population: About 233,000

Spokane is one of the few cities in the Pacific Northwest where housing is still somewhat affordable, and the only one on this list in this area of the country. Retirees get access to mountains, trails, and healthcare without the price tags of Seattle or Portland.

Retiring here on a million dollars is possible if you buy a smaller home and keep variable spending controlled. Washington’s no-income-tax rule helps preserve more of your portfolio income.

23. Tallahassee, Florida

Median home price: Around $290,000
Income taxes: No
Population: About 202,000

Tallahassee offers lower housing prices than many other Florida cities, along with access to healthcare and universities. It’s a quieter alternative to coastal metros with far less price pressure.

A retiree with a million dollars can comfortably buy a modest home and live on portfolio income here. With no state income tax, withdrawals go further compared to many other parts of the country.

How to retire on a million dollars

There are several ways to turn a million dollars into steady retirement income. The strategies below are just a few of the most common options people use. We also keep the growth numbers on the conservative side for safety, even though the stock market has been outperforming in recent years.

Option 1: buy a modest home in cash and invest the rest

If you purchase a $300,000 home outright, you remove the largest monthly expense most retirees face. That leaves $700,000 to invest in a simple total-market ETF like VTI. Historically, VTI has returned around 7 to 10 percent per year over long periods. Often much more than that.

Even at just a 7 percent return, your $700,000 portfolio would grow by about $49,000 in a typical year. You could withdraw $30,000 to live on, let the remaining growth compound, and still maintain a healthy upward trend in your balance since your housing costs are already covered.

Option 2: invest the full million and live off a 4–5 percent withdrawal rate

If you invest the full million, a 4 percent withdrawal gives you $40,000 per year, while a 5 percent withdrawal gives you $50,000. In many LCOL cities, either amount can support a simple, steady lifestyle.

With the million invested in a fund that follows the S&P 500 like VOO, which has averaged close to 10 percent annually over long periods, your portfolio could still grow while you withdraw money. A common scenario might look like $100,000 in growth minus a $40,000 withdrawal, leaving $60,000 of net growth. Returns vary year to year, but the long-term math makes this approach viable.

Option 3: build a dividend-focused portfolio for steady income

A million dollars in a dividend ETF such as SCHD, which often yields 3.5 to 4 percent, would produce roughly $35,000 to $40,000 per year in dividends. These payments arrive throughout the year, which helps create a steady income stream.

If SCHD grows at about 5 percent per year, your million could increase by another $50,000 in value while still generating dividends. This allows many retirees to live mostly on income while leaving the growth untouched for long-term sustainability.

Option 4: combine dividends with small withdrawals

A hybrid approach mixes dividend income with a small annual withdrawal. For example, placing $800,000 into SCHD and $200,000 into treasury ETFs like SGOV can create steady income. SCHD might generate around $30,000 per year in dividends, while SGOV could produce another $8,000 to $10,000 in interest.

This puts you close to $40,000 annually without touching your principal. If you ever need extra income, taking a small withdrawal from the equity portion of your portfolio won’t put significant pressure on your long-term balance.

Option 5: use a LeanFIRE-style plan with a simple part-time job

FIRE stands for “Financial Independence, Retire Early.” It’s a strategy built around keeping expenses low, saving aggressively, and investing in a way that lets you reach financial independence earlier than a traditional retirement timeline. Within that movement, different approaches exist based on how much someone plans to spend after leaving full-time work.

LeanFIRE is the version where you retire on a smaller budget and live a simple lifestyle. Many people using this approach take on a low-stress, part-time job to cover a portion of their spending. This keeps pressure off their investments and gives their portfolio more time to grow.

For someone with a million dollars saved, adding even $10,000 to $15,000 per year from part-time work can make a big difference. That small income stream can reduce how much you need to withdraw, allowing dividend or ETF growth to compound at a faster rate. It also creates more flexibility and lowers the risk of drawing down too quickly during market dips.

This option works especially well in affordable cities where your fixed costs stay low. You get the freedom and flexibility of early or semi-retirement while still giving your investments the best chance to grow over the long run.

At the end of the day

Retiring on a million dollars is still possible in the U.S. if you choose the right city and keep your fixed costs low. In many LCOL areas, a paid-off home and a simple investment strategy can create reliable yearly income without putting too much strain on your savings.

The key is picking an approach that matches your comfort level. Whether you lean on dividends, a steady 4 to 5 percent withdrawal rate, or a mix of both, your money can last for decades if you stay disciplined. A million dollars may not go far in high-cost cities, but in the right place with the right plan, it can support a stable and comfortable retirement.