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If you’re worried about how long your retirement income or savings will last, you’re not alone. In the U.S. alone, the average retiree spends more than $4,300 a month on basic expenses like rent, utilities, and food. For many, Social Security covers less than half of that, leaving a big gap to fill with savings or part-time work.
But in Mexico, it’s a different story.
Here, you can live comfortably in many cities for about $2,000 USD a month—including rent, groceries, healthcare, transportation, and even some extras like a gym membership or regular household help. That’s why so many retirees and expats are choosing to relocate south of the border.
In this post, I’ll walk you through 8 of the best cities in Mexico where you can live well without draining your retirement funds. These numbers come from my own research and from surveys of expats already living in Mexico who shared their real monthly expenses with me.
👉 If you want to see the full video version of this guide, check it out here: 8 Great Cities in Mexico Where You Can Live for $2,000 a Month.
Cuernavaca – The City of Eternal Spring
Cuernavaca, just one hour south of Mexico City, is famous for its mild weather year-round. This “City of Eternal Spring” has low utility bills since you don’t need heating or air conditioning.
- Utilities: often under $30/month
- Rent: modern 2-bedroom casitas in neighborhoods like Las Quintas or Acapatzingo rent for $800–$1,000 USD
- Total budget for a couple: around $1,800–$2,200/month
That’s less than what many people in the U.S. pay just for property taxes.
👉 Want to compare Cuernavaca to other affordable towns near Mexico City? Read my full guide on living in Toluca and Puebla.
Mérida – Colonial Charm with Mayan Culture
Mérida is one of the most popular expat destinations in Mexico, thanks to its mix of colonial history, modern conveniences, and rich Mayan culture.
- Rent: furnished apartments in the Centro Histórico start around $600/month; restored colonials with courtyards go for about $1,000
- Survey example: a one-bedroom home rented for just $345/month
- Total budget for a couple: $1,700–$1,900/month
Many expats here also hire part-time household help since it’s so affordable.
👉 Curious about life in Mérida? Check out my video with this couple Living in Mérida, Mexico.
Now, Before You Pack Your Bags… You Should Know That While You Can EASILY Live in Mexico on About $2k A Month, the Solvency Requirements for Mexican Residency are Higher.
San Miguel de Allende – World-Famous and Walkable
San Miguel de Allende is a UNESCO World Heritage city known for its arts, culture, and large expat community. Yes, it’s pricier than some smaller towns, but you can still live here for about $2,000/month with the right rental.
- Rent: one-bedrooms around $880, two-bedrooms under $1,000 in safe, walkable neighborhoods close to the city center.
- Survey example: monthly expenses of about $1,400
- Total budget for a couple: $1,800–$2,300/month+
If you want a lively, international community with strong infrastructure, San Miguel is worth considering.
👉 See more in my Ultimate Guide to San Miguel de Allende.
Guanajuato – Colorful, Affordable, and Full of Life
This hillside city is famous for its colorful homes, tunnels, and youthful energy thanks to its large student population.
- Rent: colonial-style 1–2 bedroom apartments with terraces can be found for $500–$700/month or even less in some cases
- Lifestyle costs: $6 dinners, $10 concerts, and fresh produce at local mercados keep food bills low
- Total budget: singles often live on less than $1,600/month; couples around $2,000/month
Guanajuato is also very walkable, which helps keep transportation costs minimal.
👉 Compare Guanajuato with nearby San Miguel de Allende to see which city fits your lifestyle better.
Puebla – Colonial Beauty Meets Modern City
Puebla is one of Mexico’s largest cities, yet it remains very affordable compared to U.S. standards. With mountain views, rich history, and modern infrastructure, it offers the best of both worlds.
- Rent: furnished one-bedrooms under $400/month
- Survey examples: couples living on $1,050/month including rent, groceries, and healthcare
- Total budget: $1,200–$1,600/month for most expats
Puebla is also a great base for exploring smaller nearby towns like Atlixco.
👉 Read my detailed post about living in Puebla.
Mazatlán – The Pearl of the Pacific
If you want affordable beach living, Mazatlán is one of the best-kept secrets.
- Rent: ocean-view condos with pools for around $950/month
- Survey example: a couple living on $1,700/month all-in
- Other reports: expats living between $720 and $1,430/month depending on lifestyle
- Total budget: $1,500–$2,000/month for most couples
Mazatlán offers a balance of local culture and expat-friendly amenities—without Cabo or Cancún prices.
👉 Want to compare? See my guide to Puerto Vallarta.
Puerto Vallarta – Beaches with Big-City Amenities
Puerto Vallarta is one of the most vibrant expat hubs in Mexico. With beaches, excellent healthcare, restaurants, and art walks, it’s easy to see why so many choose it.
- Rent: two-bedroom apartments range from $800–$1,300/month depending on location and amenities
- Survey examples: some expats report total living costs of $1,400/month, while others spend closer to $2,000+ depending on lifestyle
- Healthcare: top private hospitals with much lower costs than in the U.S. or Canada
Just keep in mind that summers are hot and humid, so air conditioning will increase your electric bill.
👉 Explore this family’s full breakdown of living in Puerto Vallarta.
These aren’t the only cities I recommend living in Mexico. In fact, there are dozens of cities across Mexico where you can live on about $2k a month- it all depends on your lifestyle. So checkout my ultimate guide of Best Places to Live in Mexico.
Chapala & Ajijic – The Biggest Expat Community in Mexico
Lake Chapala, including the towns of Chapala and Ajijic, is one of the most established expat communities in the country. The climate, English-speaking services, and strong social networks make it especially popular with retirees.
- Rent: two-bedroom homes starting around $700–$1,000/month
- Survey examples: couples living on $1,200–$1,600/month, some paying as little as $450/month for modest homes
- Lifestyle: affordable healthcare, utilities, and a built-in support network
Because it’s so popular, rents are a bit higher than in less-known towns—but many find the community support worth it.
👉 Want to know if Ajijic is right for you? Read my post on Ajijic for retirees.
Final Thoughts: Where Could You See Yourself Living?
Mexico offers dozens of cities where you can live comfortably on about $2,000/month. The eight above are just some of the most popular choices among retirees and expats. Whether you want beaches, colonial charm, or small-town life, there’s a place in Mexico that can fit your budget and lifestyle.
👉 If you’re serious about moving, make sure to download my Moving to Mexico Cheat Sheet to see if you qualify: Get the cheat sheet here.
And nothing compares to visiting in person. That’s why we offer private relocation tours in more than 50 cities across Mexico—so you can see neighborhoods, hospitals, and local life before you make the move.
