For millions of Americans, retirement means living primarily or entirely on Social Security benefits. With the average monthly Social Security check expected to hover around $2,000 in 2025, the challenge is finding a place where that amount covers housing, food, healthcare, and leisure.
Texas has emerged as one of the most attractive states for retirees thanks to its no state income tax, relatively affordable housing markets, warm climate, and abundant lifestyle options. While not every Texas city is inexpensive—Houston, Austin, and Dallas have grown costly—there are still many places where retirees can thrive financially and socially.
Why Retirees Are Choosing Texas
Texas offers retirees a unique mix of financial and lifestyle benefits:
- No state income tax: Unlike California or New York, retirees keep more of their benefits and pensions.
- Lower cost of living: Many mid-size and smaller Texas cities remain 15–25% cheaper than the national average.
- Affordable housing: Median rents in retirement-friendly towns often stay below $1,000 per month.
- Healthcare networks: From major medical centers in Houston to smaller community clinics, retirees have access to care.
- Climate: Mild winters help save on heating costs, though summers can be hot.
Texas vs. National Cost of Living: A Snapshot
Here’s how Texas compares to the U.S. overall across major living expenses (averages as of 2025):
| Expense Category | U.S. Average | Texas Average | % Difference |
|---|---|---|---|
| Housing (Rent) | $1,250 | $975 | 22% lower |
| Utilities | $320 | $280 | 12% lower |
| Groceries | $450 | $400 | 11% lower |
| Transportation | $450 | $380 | 15% lower |
| Healthcare | $540 | $500 | 7% lower |
This chart shows that across the essentials—housing, food, transportation, and healthcare—Texas generally outperforms the national average, which is critical when living on a fixed Social Security check.
Best Texas Cities Where You Can Live on Social Security Alone
Now let’s dive into the most retiree-friendly cities in Texas, with deeper cost breakdowns and lifestyle highlights.
1. Lufkin
- Cost of Living: 22% below national average
- Median Rent: $898
- Population: ~34,000
Expense Breakdown (Monthly Averages):
- Groceries: $380
- Utilities: $260
- Healthcare: $480
- Transportation: $360
Why It Works for Retirees:
Lufkin sits in the heart of the East Texas pine forests, offering retirees a serene setting at a low cost. With housing under $900 and groceries below the U.S. average, retirees can stretch Social Security checks comfortably.
Lifestyle Highlights:
- Ellen Trout Zoo and several nearby lakes for fishing and walking.
- Active senior centers with community events.
- Close to major hospitals like CHI St. Luke’s Health Memorial.
2. Canyon
- Cost of Living: 14.8% below national average
- Median Rent: $626
- Population: ~16,000
Expense Breakdown (Monthly Averages):
- Groceries: $360
- Utilities: $250
- Healthcare: $470
- Transportation: $340
Why It Works for Retirees:
Canyon is small, affordable, and culturally vibrant thanks to West Texas A&M University. Housing costs under $650 make this one of the most budget-friendly Texas cities for retirees.
Lifestyle Highlights:
- Palo Duro Canyon State Park, known as the “Grand Canyon of Texas,” offers endless hiking.
- University events—lectures, concerts, and theater—add cultural variety.
- Access to Amarillo’s larger medical facilities just 20 minutes away.
3. Clute
- Median Rent: $748
- Population: ~11,000
Expense Breakdown (Monthly Averages):
- Groceries: $370
- Utilities: $275
- Healthcare: $510
- Transportation: $355
Why It Works for Retirees:
Clute sits near the Gulf Coast, offering retirees coastal living without Galveston’s higher costs. Healthcare is accessible and affordable, making it a good fit for seniors with medical needs.
Lifestyle Highlights:
- Access to Gulf Coast beaches and fishing.
- Brazosport Center for the Arts and Sciences.
- Community-oriented small-town feel.
4. Athens
- Median Rent: $919
- Population: ~12,000
Expense Breakdown (Monthly Averages):
- Groceries: $385
- Utilities: $270
- Healthcare: $495
- Transportation: $350
Why It Works for Retirees:
Athens offers a slower pace of life with affordable rents just under $1,000. While not the cheapest, it balances cost with community charm.
Lifestyle Highlights:
- Known as the “Home of the Hamburger.”
- Multiple lakes for boating and fishing.
- Cain Center, a hub for senior activities and fitness.
5. Marshall
- Cost of Living: 22.2% below national average
- Median Rent: $871
- Population: ~23,000
Expense Breakdown (Monthly Averages):
- Groceries: $375
- Utilities: $265
- Healthcare: $485
- Transportation: $345
Why It Works for Retirees:
Marshall combines affordability with rich history. Retirees can live well below the national cost of living while enjoying cultural heritage and strong community ties.
Lifestyle Highlights:
- Historic downtown and courthouse square.
- Michelson Museum of Art.
- Senior programming through local community centers.
Other Affordable Texas Cities for Retirees
While the top five cities shine brightest, these additional locations deserve consideration:
| City | Median Rent | Cost of Living | Notable Feature |
|---|---|---|---|
| Port Arthur | $882 | 19% lower | Gulf Coast living with energy-sector jobs nearby |
| Weslaco | $745 | 20% lower | Located in the Rio Grande Valley, warm winters |
| Kermit | $700 | 18% lower | Small-town charm in West Texas |
| Bay City | $910 | 15% lower | Near Matagorda Bay, strong sense of community |
| Henderson | $850 | 21% lower | East Texas with historic downtown |
| Beaumont | $950 | 17% lower | Larger city with strong healthcare system |
| Galveston | $1,050 | 12% lower | Coastal living with tourist amenities |
| Longview | $920 | 20% lower | Affordable East Texas hub |
| Burkburnett | $780 | 23% lower | Close-knit community near Wichita Falls |
Practical Tips for Retiring in Texas on Social Security
Living well on Social Security alone requires more than choosing the right city. Here are strategies tailored for Texas retirees:
- Leverage Texas’s no state income tax
With no tax on Social Security benefits, pensions, or IRA withdrawals, maximize income by keeping distributions within the state. - Downsize housing
Rent is the biggest cost. Moving to a smaller apartment or senior housing community in one of the affordable cities listed can cut expenses dramatically. - Use senior discounts
Texas offers senior discounts at state parks, local transportation, and even utility companies—small savings add up. - Consider healthcare networks
Retirees should look at proximity to hospitals and clinics. Cities like Beaumont and Galveston provide larger medical networks, while smaller towns often have strong community clinics. - Embrace local resources
Senior centers, community events, and low-cost recreation (like state parks) provide entertainment without high costs. - Plan for transportation
Many Texas towns don’t have robust public transit. Budget for car expenses or consider senior shuttle programs available in some areas.
Living on Social Security in Texas is realistic for retirees who choose wisely. Cities like Lufkin, Canyon, and Marshall offer rent under $900, groceries below the national average, and strong community amenities. Even in slightly higher-cost towns like Galveston or Athens, retirees benefit from Texas’s tax advantages and accessible healthcare.
Retirement isn’t just about surviving—it’s about enjoying your golden years. With its mix of affordability, culture, and natural beauty, Texas offers plenty of places where Social Security alone is enough for a comfortable and fulfilling lifestyle.
