6 Underrated Gems With Great Value and Low Cost of Living

Research shows that many Americans dream of spending their golden years in a small town, favoring the tranquility of a slower pace over the relentless energy of big cities or the crowds of coastal communities.

To help turn that vision into reality, Investopedia joined forces with Travel + Leisure to conduct a data-driven analysis of housing costs, daily expenses, healthcare access, and local amenities nationwide. The result is a curated list of six towns—each with fewer than 5,000 residents—where retirees can find the rare blend of affordability, healthcare, and community that makes small-town living so appealing.

1. Gregory, South Dakota

Gregory County, once considered America’s “Last Frontier,” opened for settlement in 1904 by presidential proclamation. Originally, 2,600 people were given 160-acre tracts of land. Today, the county remains home to just 4,000 residents, with about 1,200 in Gregory itself.

As the smallest town by population on our list, Gregory epitomizes the best of small-town affordability. Gregory County ranks among the top 10 nationwide for lowest median home values and sits in the top three for lowest median housing costs on our 2025 list of the 50 best places to retire.

Another affordability point is that South Dakota also doesn’t tax Social Security benefits or withdrawals from 401(k)s, IRAs, and pensions.  

Gregory provides many opportunities for retirees to connect—from friendly matches on the city’s tennis courts and horseshoe pits to rounds on the scenic nine-hole golf course. Gregory County’s hunting grounds also attract people from across the country for ideal deer and pheasant hunting. 

2. Corning, Iowa

Corning, Iowa’s population of about 1,500, historic sites, and picturesque main street lined with mom-and-pop shops may remind you of simpler days when conversations were unhurried and community ties ran deep.

Gather with friends in a cozy cafe, catch a performance at the historic Corning Opera House or American Theater, or unwind at the city’s expansive aquatic center—boasting a zero-entry pool, concession stand, and more. Just outside town, Lake Icaria offers a variety of activities, including disc golf, hiking, boating, and fishing, making it a hub for outdoor socializing.

All this small-town charm is surprisingly affordable, with average home prices of about $144,765. Iowa also exempts Social Security benefits and retirement withdrawals from state taxes—letting retirees stretch their dollars further in Corning.

3. Tryon, North Carolina

Branding itself as “The Friendliest Town in the South,” this community is brought together by its intense love of horses. But the town offers more than that. There are golf courses, parks, trails, wineries, and vineyards to explore with friends among its 1,600 residents. 

Retirees enjoy an extended season for outdoor activities here, thanks to the town’s unique position along the mountainside. A rare weather phenomenon known as the “thermal belt” brings milder winters and cooler summers compared with surrounding regions, making Tryon a great place to be year-round.

Combined with its numerous arts and entertainment establishments, Tryon might be the small town in this article with the most things to do. There are also dozens of health care establishments and a few hospitals in the county, making this small city rank highly for healthcare access. 

However, these tiny-town amenities don’t come with a lower price tag. Median home sale prices in Tryon’s Polk County are about $304,179, and monthly taxes, at around $700, rank among the highest of all 50 cities on our complete list of the best places to retire.

4. Santa Rosa, New Mexico

Just about two hours from anywhere in New Mexico, Santa Rosa is a tiny town of about 2,700 people with a historic downtown area and scenic drives along the Pecos River to Puerto de Luna.

Santa Rosa also features fishing spots at its Blue Hole Fishing Pond and Perch Lake, as well as numerous dog-friendly hiking and biking trails. Residents also enjoy a few arts and entertainment options and quality health care facilities.

Spend the day at Santa Rosa’s Route 66 Auto Museum, showcasing vintage cars, or explore the Billy the Kid Museum with over 60,000 artifacts in nearby Fort Sumner. In Puerto de Luna, you’ll find historic churches and cemeteries against a desert backdrop.

With median home values of just $215,000 and monthly housing costs averaging $510, Guadalupe County offers the most affordable housing in this entire roundup.

5. Parker, Arizona

Home to about 3,400 residents, Parker, Arizona, is the largest of the featured towns. Its Park Senior Center caters to adults 50 and up, offers members fitness classes, group excursions, dance, art, and a wealth of activities for vibrant living.

The Bill Williams National Wildlife Refuge is another gathering place where you can see wildlife, fish, hike, and bird-watch with friends. It’s about a 30-minute drive from Parker. For a quirky day trip, visit Lake Havasu City’s London Bridge, the real 19th-century structure relocated from England and painstakingly reassembled in the 1970s.

For a small town, Parker has a decent number of health care establishments. It also ranks high in affordability, with median home values just under $200,000 and median monthly housing costs of $539 in La Paz County, where Parker resides.

6. Pomeroy, Washington

Tucked away in southeastern Washington, Pomeroy is ideal for retirees who are not afraid of cold weather, snowy winters, and brief summers. During peak summer, average highs reach the mid-80s, while nighttime lows hover in the mid-40s to low 50s.

There are plenty of outdoor activities if you don’t mind the chilly weather. Enjoy a picnic or stroll at Pomeroy City Park, catch the free Tumbleweed Music Festival to mingle with the town’s intimate population of about 1,400, or immerse yourself in local culture at the Garfield County Fair and Rodeo.

Despite its local festivities, Pomeroy may be the quietest of all our featured towns. Our data shows that Pomeroy’s Garfield County has just one art and entertainment venue, a single health care facility, and one major hospital. The nearest airport is 204 miles away, making travel more challenging for residents.

The Bottom Line

Tiny towns may lack the glitz of big cities, but for retirees seeking charm, community, and affordability, these six municipalities deliver in spades. Each offers ample character, rich culture, and genuine camaraderie—proving that small-town living can be both rewarding and accessible.

Retirees might enjoy Gregory’s frontier roots and hunting culture, or Cornings’ nostalgic Main Street. Others may prefer Tryon’s unique weather and lively arts and entertainment scene or Santa Rosa’s history. Together with Parker and Pomeroy’s strong sense of community, our list of tiny towns shows that each offers its own unique version of connection and comfort, helping you find the best one to spend your golden years.