It’s easy to think retiring to a lake town is a luxury reserved for the wealthy. However, if you know where to look, you can find charming lake-town communities where seniors on a fixed income can enjoy abundant sunset views, fishing, boating, and wildlife — without the high price tag of waterfront living.
These quiet lake hideaways offer a slower-paced lifestyle by the water and a small-town vibe far removed from bustling cities.
Here are five lake towns where you can retire comfortably on $2,500 a month.
Guntersville, Alabama
Average home value: $287,682 per Zillow
Situated in the foothills of the Appalachian Mountains, Lake Guntersville offers retirees affordable living paired with Southern charm. This destination is known for striped bass fishing, boating, swimming and scenic hiking trails.
Seniors can rent a one-bedroom home outside the city center for about $877 per month, and monthly utilities — including heating, cooling, water and trash removal — cost less than $200. A three-course meal for two at a midrange restaurant costs about $65, excluding drinks, according to Numbeo. Pay cash for your home, and you may be able to live comfortably on a modest budget.
Read More: I’m a Car Expert: 5 Luxury Cars To Avoid Before Retirement
Find Out: 5 Clever Ways Retirees Are Earning Up To $1K per Month From Home
Hot Springs, Arkansas
Average home value: $235,779, per Zillow
The lake town of Hot Springs blends the tranquil lakefront living of Lake Hamilton with southern charm, centered on naturally heated springs at a modest budget. Head to the historic Bathhouse Row downtown for a thermal mineral soak, explore nature trails, or unwind on your lakefront or lakeside property and take in the views at sunrise and sunset.
Retirees who prefer renting can find a three-bedroom apartment outside the city center for an average of $924.33. Monthly utilities for heating, cooling, water, and trash removal cost about $224.
Clearlake, California
Average home value: $199,920 per Zillow
Think California is out of reach of a retiree’s budget? Clearlake is the rare exception. Situated just outside the Mendocino National Forest, this lake town pairs serene waterfront living with access to hiking trails, a growing local art scene, and Sonoma’s world-class wineries just a short drive away. The average rent in Clearlake is $1,475, with studios averaging $750, one-bedrooms $1,100, and two-bedrooms $1,200, according to Zillow.
Lake Geneva, Wisconsin
Average home value: $398,819 per Zillow
If the Midwest is more your style, consider making Lake Geneva, Wisconsin, your home. Although the median home value is slightly higher than the other lake towns on this list, it’s still lower than the national median sale price of $433,261 (November 2025), reported by Redfin.
You can rent a one-bedroom home in Geneva for about $1,500 a month, and monthly utilities (heating, cooling, water, and trash removal) are reasonably priced at around $176.32 for a 925-square-foot home.
Stroll down the scenic Geneva Lake Shore Path, a 21-mile walking trail that loops around the lake with endless views of historic mansions. Try your swing on a golf course, take a relaxing boat ride, enjoy local festivals, and visit the many restaurants and cafes in Lake Geneva’s walkable downtown.
Always do your due diligence and get a home insurance quote before you buy, as waterfront communities in areas prone to natural disasters may require costly flood insurance.
More From GOBankingRates
- Mark Cuban Warns 4 Key Industries Could Crumble in the Next Recession
- How Much Groceries Cost Americans 10 Years Ago vs. Today
- How Middle-Class Earners Are Quietly Becoming Millionaires -- and How You Can, Too
- 6 Safe Accounts Proven to Grow Your Money Up to 13x Faster
This article originally appeared on GOBankingRates.com: 5 Lake Towns Where You Can Retire Comfortably on $2,500 a Month
