Social Security payments to retirees average $1,548 per month. The annual benefits for a single individual come to $18,576, while the yearly benefits for a couple come to $37,152. This is almost $31,500 less than the median household income in the United States, which is $68,703, based on the most recent numbers from the United States Census Bureau.
To put it simply, to live on a fixed income implies having little to no control over how much money you receive each month and relying instead on sources like Social Security, pensions, and inheritance. Living on a limited income can be particularly difficult to deal with unpredictable costs, such as the ups and downs of the real estate market.
Gillette has rising home values and falling rental rates. The median rent has decreased by less than 1% over the past year, reaching $1,074, and home prices increased by less than 1% to $278,763.
The median price of a home in Racine is $138,222, up about 8.14 percent in a year. Suppose unexpected bills deplete retirees’ savings. In that case, a rise in the value of their home may be their only source of financial security.
West Virginia: Huntington
With a typical home value of $89,994 and a year-over-year increase of just 3.32%, Huntington has one of the lowest home prices compared to the other cities in this study. Rent is also low, coming in at just $854 per month, and has dropped by roughly 3% year-over-year.
Washington: Moses Lake
The median value of a home in Moses Lake has increased to $273,071 in recent months, representing a roughly 18% increase from a year ago. A growth of 2% from the previous year ranks as the second most significant increase. But rents have been falling, with the average monthly rent dropping by around 2% to $888.
Martinsville is a great place to settle down for retirees or others on a budget, as the city’s median house value is only $82,335. The housing market is solid, with an annual appreciation of roughly 4.84%.
Compared to the rest of the country, Rutland has a far more affordable median home price of roughly $83,000. The property value appreciation rate is 9.27%, which is decent but could be more spectacular. The average rent dropped to $1,018 this year, a fall of over 1% from the previous year.
Utah: Cedar City
Cedar City’s median home value has risen significantly year over year, up 15.17 percent. Cedar City, Utah, has a median home value of $278,919, just over the national average, and a median rent of $830, just under the national average.
Someone living on a fixed income may appreciate Alice’s affordable housing. With a property value of $93,507 and a year-over-year increase of less than 5%, it is still one of the most affordable cities despite the rise in rentals. Typically, rent is $913 per month.
With Shelbyville’s modest house prices, retirees and others on tight budgets can afford to settle there. Nearly 10% annual growth was seen in the metro area’s median home price. Rent is another way that people on fixed incomes might save money. Morristown, New Jersey’s typical monthly rent grew by 1.27 percent from $800 in 2020 to $831 in 2021.
South Dakota: Aberdeen
Aberdeen’s rental rates have been rising at a rate of about 4.44 percent; however, even with this increase, the average monthly rent is still around $810. Meanwhile, housing prices rose 3.17 percent from a year ago, reaching $177,917.
South Carolina: Orangeburg
There is no state income tax on Social Security in South Carolina. With a typical house value of about $108,731, Orangeburg is the most fantastic city in South Carolina for retirees on a tight budget. Furthermore, rental prices increased by 6.10% annually to an average of $779 per month.
Rhode Island: Woonsocket
Woonsocket, in Rhode Island, is more affordable for retirees than Providence or the rest of the state due to its lower cost of living. Home prices are lower than average ($108,731), and rent is more than average ($1,219/month) by roughly $197.
While property values increased by roughly 2.73% in the same time period, rents in Williamsport increased by more than 4.24% to $909. The typical value of a home is $156,817, which is over $130,000 lower than the national average.
Zillow reports that the state-wide median house value in Oregon is $536,921, but in Roseburg, it is only $272,470. Yet, the market is evolving, with housing values increasing by roughly 14.29% annually. The average monthly rent now totals $1,216, an increase of about 2% from the previous year.
The median price of a home in Stillwater is $184,821, while the median rent is $924 per month. However, year-over-year, housing values rose roughly 3.03% while rentals rose by about 4.88%.
Compared to a year ago, rent in Findlay has increased by 5.96% to $900 per month. The median home value in the city is now $176,012, up 9.25% from a year ago.
North Dakota: Fargo
Fargo had a year-over-year rise in home values of roughly 7.56 percent. With this increase, the average monthly rent now sits at $988, a 4.4% increase from before.
North Carolina: Raeford
Raeford is experiencing a rise in home values and a fall in rental prices. The median price of a home rose by 3.47 percent to $175,012, while the median rent rose by only 0.9 percent. However, the typical monthly rental is still $860.
New York: Town of Orchard Park
Home prices here are more than $30,000 lower than in the rest of the country, with a median value of $255,916. Values of homes have risen by around 8.81% during the past year, while rentals have grown by more than 9%.
New Mexico: Alamogordo
Prices are rising, but Alamogordo is still a fantastic place to live on a budget. The typical home price in the city is currently $145,479, representing an annual increase of roughly 4.85%. The cost of renting a place went up by 4.3%.
New Jersey: Franklin Township
According to Zillow, the median home price in expensive New Jersey is $287,148. Still, in Franklin Township, it is only $265,843, an increase of over 8% yearly. Prices for monthly rent have decreased by 1.5%, but at $1,801, they are the highest we saw in our research.
New Hampshire: Rochester
Rochester saw one of the most significant annual increases in home value, up 17.63% to $280,307. However, rent increased only $2 to an average of $1,472 throughout that time.
Pahrump, located in the state’s northern region, saw a 3.4% annual decrease in rental prices to $918. Homes here have a median value of $279,920, around $7,200 less than the national average.
Kearney, Nebraska, home prices are roughly $50,000 cheaper than the national average. In Kearney, the median value of a home increased to $236,999, representing a growth of almost 5.35% annually.
Average rent in Butte increased by less than 2% over the past year. Hence, retirees need not worry a great deal about affordability. However, property prices rose roughly 10.13 percent to $166,952.
The median home value in Joplin is $130,466, and the median rent is $814, both much lower than the national median. Year over year, housing values and rentals increased by 7.38 and 8.24 percent.
Starkville’s median property price is $189,873, making it a good option for people on a limited budget. The cost of a home rose by 3.84%, while rent jumped by 3.65%.
Winona’s housing market is reasonably stable, which is good news for first-time buyers on a budget. The average home in Winona is now worth $186,452, a 6.5 percent rise from a year ago. The average monthly rent dropped to $808, a savings of $3.
Michigan: Mount Pleasant
Mount Pleasant, South Carolina, saw a 5.87% annual rise in rent to $834. The median value of a home is currently $155,448 after a 6.75% gain in value.
Massachusetts: West Springfield
West Springfield has a median house price of $275,707. Comparatively, the median home price in Massachusetts is $508,232, which is significantly less than the national median value by around $12,000. The city’s home value appreciation was approximately 10.81% in the past year.
Although the median home value in Salisbury is $182,212, up 9.60% from a year ago, it is still within most people’s price range. Average rent increased to $1,131, a 2.21% increase from the previous year.
Even though property values in Bangor have risen by an impressive 20% over the past year, the city’s median home price of $197,690 makes it far more reasonable than the national median home price of $287,148. The cost of renting a home has also increased by around 5.88% annually.
Pineville home values are roughly the same as a year ago, up around 1.06% to $145.066, but rent has dropped about 2.70%. The city’s median monthly rental fee is $858.
Kentucky: Bowling Green
Although rents in Bowling Green are reasonable for retirees, the city’s housing costs are rising. Median rent is $928, an increase of 3.3% year-over-year. A home’s median price is $192,853, which is over $95,000 lower than the national median but is up by less than 1% from the previous year.
The median home price in Manhattan, where Kansas State University is located, is $225,182, up 3.85% from a year ago. The average monthly rental cost dropped by $72, or 7.2%, to $1,023.
The property and rental markets in Burlington are stable, with home values rising by around 2.69 percent annually and rents rising by about 4.4 percent. One of the most affordable cities on the list, with a typical property value of $96,243.
The median home price in Richmond is now $99,402, up around 5.25 percent from the previous year. The good news for tenants on a fixed income is that rental prices have been relatively constant, increasing by only 1.2% annually.
With a median value of only $73,009, Galesburg has the lowest median house value of any city analyzed by GOBankingRates. That’s excellent news for those on fixed incomes who want to buy a home since now they can. Both home prices and rental costs have stayed relatively stable over the past year, making both options reasonably priced.
Pocatello, Idaho, saw one of the most significant annual property value increases (18%) in the study’s sample. At its current $231,035, the median home value is still nearly $56,000 below the national average. Prices for monthly lodging increased by 1.54%, reaching $872.
Pahoa is a cost-effective alternative to other popular areas of Hawaii. Although Zillow estimates that the median home price in the 50th state is $718,095, the median property value in Pahoa is significantly lower at $217,858. That’s an increase of 13.88 percent from the previous year. A year ago, the average monthly rent was $1,300; now, it’s $1,500, an increase of 3.52%.
Statesboro real estate values are stable at $162,557, up only 1.20% year-over-year. In the same period, rent increased by 1.43 percent but averaged only $837 per month, below the national average.
In Kissimmee, the median home value is $264,884, up 7.37% over the previous year. Over the same time period, rents increased by 5.70%, reaching an average of $1,457.
Delaware: New Castle
The state of Delaware is unusual in that it does not impose a sales tax. As one of the few states that do not tax retirement income from the federal government, this is a great area to settle down after retirement. Median home prices in New Castle reached $264,884 last year, up 11.88% from the previous year, while rentals went up 2.79%.
The median value of a home in Hartford is now $188,305, an increase of 15.23% over the previous year. The average monthly rental cost increased to $1,392 (a 10.2% increase).
The median property price in Pueblo is currently $244,009; however, it is rising quickly and has increased by roughly 17.90% annually. The rent pricing has remained the same over the past year, and the monthly average now sits at $908.
Zillow estimates the median California home price at $668,300, while Delano’s is only $257,342. Over the past year, home prices in California climbed by 12.09%, which is more than the state average of 10.9%. There was a similar gain of 2.64% in rental prices.
Arkansas: Little Rock
The typical monthly rent in Little Rock is now $953, a yearly increase of 5.7%. The median home value in Little Rock is $165,027, making it one of the more affordable cities to acquire a home.
Arizona: Sierra Vista
Consider Sierra Vista if you want to buy a house on a fixed income, but don’t wait too long. Over the past 12 months, Sierra Vista saw one of the most significant increases in home value, with a rise of over 12% year over year. Rents increased by the same amount, $12, to $994 per month on average; nevertheless, this is still below the national average.
Alaska is one of the finest states to retire to if you’re on a fixed income because it has no income tax or sales tax. The typical home value in Fairbanks is $255,438 (lower than the nationwide median of $287,148), up 12.09% year-over-year. In addition, renters can rejoice since the median rent in Fairbanks has dropped by around 2.3% annually.
Alabama is the perfect place to retire on a fixed income if you want to make your money last as long as possible in old age. The property market in Jasper is consistent, making it a good option for retirees or others living on a limited income. A year-over-year increase of 4.84% in home values was offset by a -0.1% decline in rental rates. Furthermore, housing is also relatively inexpensive, with a median property value of $126,233.
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