Retire to the Southwest in these five scenic communities that won’t break the bank

Filled with red rock valleys, arid desert landscapes, and deep cultural roots, the beauty of the Southwest attracts retirees who yearn for wide-open spaces, adventure, and a slower pace of life. While some cities in the region have hefty costs of living, others remain affordable.

To uncover the most budget-friendly retirement havens in the region, Investopedia In partnership with Travel + entertainment To analyze the cost of living, various taxes, and amenities important to retirees, such as entertainment opportunities and access to health care. We’ve finally identified the five best affordable cities in the Southwest for retirees.

From small towns to mid-sized cities, the communities below offer retirees a rare combination of affordability, attractive amenities, and authentic Southwestern character that makes a vibrant retirement possible—even on a modest budget.

1. Hugo, Oklahoma

Hugo, Oklahoma was once a “Wild West” town frequented by gunslingers, ballroom girls, and traveling circuses. Today, it is known for its beautiful foliage, curated museums, Asian elephant conservation efforts, and more recreational pastimes, such as fishing.

Retirees who settle in this small town enjoy affordable median home values ​​of about $120,000 countywide, and the lowest median monthly property taxes in the county ($42) on our complete list of the 50 Best Places to Retire.

While Oklahoma does not tax Social Security benefits, withdrawals from retirement accounts may be taxed in some cases.

2. Eagle Pass, Texas

Active retirees can find plenty to enjoy in Eagle Pass, from the local nine-hole golf course to the lakeside shopping and fishing areas. You can also take a chance at the nearby Lucky Eagle Casino, the only casino in Texas, or enjoy authentic Mexican cuisine on Main Street downtown.

You may appreciate everything the Eagle Pass has to offer more once you realize that Texans don’t have any income, including Social Security benefits or retirement income withdrawals.

Residents of Maverick County, where Eagle Pass is located, also have the lowest average paycheck deductions (FICA, federal and state income taxes) among the counties in this article. For retirees who plan to work into their golden years, this could be another vote for Eagle Pass.

The county also has the lowest monthly food costs ($470) among our top 50 cities for retirement, and the median home value is an attractive $151,500.

3. Parker, Arizona

A great city for outdoor enthusiasts, Parker, Arizona is home to the nearby Bill Williams National Wildlife Refuge, which offers wildlife viewing, fishing, hiking, birding and more.

You’ll also find stunning scenery at Buckskin Mountain State Park, while Parker Dam surrounds the area’s top attractions. All of these free activities allow retirees to stay active and engaged without emptying their wallet.

Parker County La Paz ranks seventh for median affordable home value on our complete list of the 50 Best Cities to Retire, with median home values ​​under $118,000. Monthly housing costs in La Paz also stand out, coming in at less than $540.

While Arizona withholds taxes from 401(k)s and IRAs, Social Security benefits remain untaxed.

4. Muskogee, Oklahoma

Muskogee, Oklahoma, is a mid-sized city filled with history, music, and outdoor adventures. Explore museums that honor Native American heritage and offer first glimpses into early life in Oklahoma, visit the USS Batfish Memorial, or listen to live country tunes downtown.

Despite Muscogee County being one of the most populous counties in this article, homes are very affordable, with the median home value under $138,800. Property taxes are particularly low, averaging about $80 per month.

There are no state taxes on Social Security benefits, but there are taxes on withdrawals from retirement accounts in some cases.

5. Lake Havasu City, Arizona

Lake Havasu’s claim to fame is the famous London Bridge. Dismantled into more than 10,000 granite pieces before being shipped from London in 1967 and reassembled within the city limits, the London Bridge at Lake Havasu helped propel the city’s growth into the metropolis it is today. Another highlight is the annual Havasu Balloon Festival, a popular local attraction that attracts visitors from far and near.

For budget-conscious retirees, Mohave County—home to Lake Havasu City—checks many of the boxes. Although the population exceeds 217,000, residents of the province enjoy a fairly low cost of living. There is also great access to healthcare throughout the area.

It is important to note, however, that Arizona taxes withdrawals of income from retirement accounts. Furthermore, Mohave’s median home value — about $253,200 — is the highest ever on this list. However, these prices remain relatively affordable compared to the national average.