8 Budget-Friendly Towns in Texas for Retirees

Many Americans are relocating for retirement, and Texas is a fantastic, budget-friendly state to consider. There is no state income tax in Texas, meaning that Social Security retirement benefits and all other types of retirement income are tax-free. Seniors can claim both the over-65 exemption and the standard homestead exemption, which will significantly lower their property taxes. Median home listing prices in Texas are also lower at around $349,000, compared to the national average of $400,000, making home ownership more affordable. From the most affordable towns like Temple and Waco to the pricier communities of Georgetown and Fredericksburg, where budget-friendly living means being savvy, Texas has plenty of options for retirees.

Georgetown

Georgetown, located just 28 miles from Austin, is one of Texas's most popular cities. And because of that, it tends to be a bit pricier, with the median listing price at $459,970, according to realtor.com (as of March, 2026). However, Georgetown has many affordable attractions that more than make up for slightly higher housing prices, including the Georgetown Palace Theatre and Berry Springs Park. The theatre offers seniors' rates and a seniors' flex pass, so access to the arts won't be heavy on your pocketbook. Meanwhile, Berry Springs Park is a true highlight of the town, offering a peaceful escape with opportunities for hiking, picnicking, fishing, and scenic bike rides. Additionally, it features pavilions available for rent, ideal for the family to camp overnight when they visit. For healthcare needs, Georgetown is also home to the St. David's Georgetown Hospital and multiple medical clinics.

Fredericksburg

Fredericksburg is another popular town with median listing prices well above the state and national averages, at $749,500. However, for those considering renting, the US Census Bureau reports that the median gross rent was only $1,386 (between 2020 and 2024), which is lower than both the state and national median gross rent (which are over $1,400). For art lovers, Fredericksburg is home to a vibrant arts scene, with more than 10 galleries downtown, including InSight Gallery, Good Art Company, and Charles Morin Fine Art Gallery. The latter specializes in antique paintings depicting Texas in its early days, and if you like what you see, you can even purchase them. To see panoramic views of Fredericksburg, visit Cross Mountain and witness breathtaking vistas from 1,951 feet above sea level, in addition to hiking paths, picnic pavilions, and a butterfly garden. To enhance your quality of life through good healthcare, the Methodist Hospital Hill Country and Mid-Texas Health Care are conveniently located in town.

Granbury

Granbury is a budget-friendly town for retirees, with a median listing price of around $367,000 and median gross rental prices of around $1,386. The community is known for its historic Granbury Opera House and the charming Granbury Historic Square. This cozy town features several scenic spots, including De Cordova Bend Park on Lake Granbury near the dam. While exploring the historic square, you can shop at over 60 unique boutique stores. The plaza also hosts numerous annual festivals and events, including the upcoming Labor Day Weekend Festival from August 30 to August 31, featuring sidewalk sales, street vendors, karaoke, and a boat parade. For your healthcare needs, Granbury offers several walk-in clinics and the Lake Granbury Medical Center, which includes an emergency room.

New Braunfels

New Braunfels is known for being a friendly city with tons of top-notch amenities, and with median listing prices of around $385,000, it is also an affordable option for retirees. Explore the Gruene Historic District to splurge in antique shops, or unleash a swing by the Landa Park Golf Course and the nearby Landa Park, a 51-acre riverside area with picnic tables underneath towering trees, an outdoor swimming pool, and wildlife viewing opportunities. New Braunfels is also home to two hospitals: CHRISTUS Santa Rosa Hospital and Resolute Baptist Hospital, and several medical centers.

Kerrville

Located 65 miles from San Antonio, Kerrville is an excellent destination for retirees who appreciate beautiful landscapes and rich culture. The community is well-equipped with the Peterson Regional Medical Center and other medical centers to address your healthcare needs. If you are considering making Kerrville your home, the median listing price is around $469,000, but the median gross rental price is much more affordable at around $1,086.

For outdoor enthusiasts, the scenic Guadalupe River provides a perfect setting for activities like kayaking, allowing you to cool off on hot days. Residents can also explore the Museum of Western Art, which showcases artifacts and exhibitions celebrating Western heritage. The museum also offers workshops, educational events, and various programs.

Boerne

Given Boerne’s proximity to San Antonio, median listing prices are higher, at around $635,000, but being surrounded by endless free recreation makes this town budget-friendly. Boerne is the main gateway town to the Cascade Caverns, just 6.3 miles away. This million-year-old limestone cave has attracted thousands of visitors since 1932 and presents unforgettable tours. Conversely, escape all the noise and enjoy some serene space by trekking the Cibolo Nature Center, offering two campuses that cover more than 160 acres and extensive trails that run through five unique ecosystems. Finally, explore the Main Plaza, surrounded by multiple cafes and restaurants, including Black Rifle Coffee, Hungry Horse Restaurant and Catering, and The Dienger Trading Co. Addressing your medical needs is no cause for concern thanks to the Methodist ER Boerne, located conveniently on the precipice of the town’s border near the south.

Waco

Located along the shores of Lake Waco, this town offers affordable housing, with the current median listing prices around $289,000, well below both the state and national averages. For healthcare needs, Waco is well-equipped with facilities such as Ascension Providence Hospital and Baylor Scott & White Medical Center - Hillcrest, as well as several medical centers, ensuring residents have access to a wide range of services and specialists. Residents can also appreciate the fascinating Waco Mammoth National Monument. Here, you can learn about the enormous creatures that roamed the Earth tens of thousands of years ago.

Temple

Temple, Texas, is one of the most budget-friendly towns in the state, with median home listing prices around $285,000. This town began its journey as a railroad stop 143 years ago. Its history can be explored at the Temple Railroad & Heritage Museum, which features both permanent and rotating displays, workshops, and special events. One of the advantages of living here is its proximity to Belton Lake, a large reservoir where you can cool off by swimming or enjoy outdoor activities like camping, fishing, and having a relaxing picnic. To ensure quality healthcare, Temple is home to Baylor Scott & White Medical Center and a Veterans Hospital.

If you are considering a move to Texas, then you'll want to have a closer look at these budget-friendly towns. In addition to generally more affordable housing and rental prices, these towns also offer a wealth of landmarks and amenities. They offer access to top medical facilities and friendly residents, creating a safe environment to enjoy your retirement years. Whether you prefer a rejuvenating walk in Landa Park in New Braunfels or viewing the latest masterpieces in galleries in Fredericksburg, these budget-friendly towns have something to offer for retirees of all interests.