Living near the lake needn’t all your money take.
Many Americans dream of easy access to water sports, soothing sounds of gentle waves lapping against the shoreline, lake views out of front windows … you get the idea. Tight budgets are often the blocker, but they don’t necessarily have to make these dreams go poof.
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GOBankingRates has compiled a fresh list of the 20 most affordable U.S. cities and towns located on or near lakes. The rundown draws from a blend of sources including Travel + Leisure, Thrillist, MSN, the U.S. Census Bureau, Sperling’s BestPlaces, the Bureau of Labor Statistics, Zillow, the Federal Reserve and AreaVibes.
Median household incomes in these locales aren’t high compared to many other U.S. cities. The same is true for those AreaVibes livability ratings. But if you’re longing for lake living while on a tight budget, these spots may be worth a look.
Here’s a rundown of the top 20, counting down from the 20th least expensive lake town in the U.S. to No. 1. The South, Midwest and Upper Midwest regions of the U.S. are well-represented.
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20. Albertville, Alabama
- Monthly cost of living: $3,048
- Average single-family home value: $205,160
- Median household income: $57,103
You’ll find Albertville about an hour’s drive southeast of Huntsville and a short drive from Guntersville Lake. The area offers boating, fishing, swimming and a state park. The average single-family home value in Albertville is the third highest among the cities in our top 20 list.
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19. Sumter, South Carolina
- Monthly cost of living: $3,044
- Average single-family home value: $200,412
- Median household income: $53,071
Lakes near Sumter include Ashwood Lake, a public fishing lake just north of the city. Much larger Lake Marion is about 40 miles to the south. If you’ve got a mortgage on a home in Sumter, you can expect to pay $1,150 a month on average.
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18. Summersville, West Virginia
- Monthly cost of living: $2,980
- Average single-family home value: $173,043
- Median household income: $52,321
Summersville is located in central West Virginia and offers easy access to Summersville Lake — the state’s largest. Summersville Lake is known for its clear blue water and plentiful outdoor recreation options. Summersville itself is a popular spot for retirees, with 40% of its residents age 65 and up.
17. Erie, Pennsylvania
- Monthly cost of living: $2,967
- Average single-family home value: $192,589
- Median household income: $43,397
The city of Erie sits in the northwest corner of Pennsylvania, alongside the Great Lake that shares its name. The area is home to Presque Isle Bay, along with numerous beaches and other recreation areas. Erie also gets a livability score of 82 from AreaVibes — the highest among the cities in this list.
16. Russellville, Arkansas
- Monthly cost of living: $2,961
- Average single-family home value: $211,154
- Median household income: $48,708
Located about 75 miles northwest of Little Rock, Russellville boasts easy access to popular Lake Dardanelle State Park and plentiful recreational opportunities. AreaVibes gives Russellville a reasonable livability score of 74. Plus, mortgages here average around just $1,200 a month.
15. Augusta, Georgia
- Monthly cost of living: $2,936
- Average single-family home value: $174,452
- Median household income: $53,134
The home of golf’s famed Masters Tournament and numerous other attractions, Augusta sits along the border with South Carolina. The area features multiple lakes, including Clyde Hill Dam and Lake and its 1,200 miles of shoreline. In addition to an average monthly cost of living below $3,000, Augusta offers average monthly mortgages just below $1,000.
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14. Henderson, North Carolina
- Monthly cost of living: $2,931
- Average single-family home value: $187,277
- Median household income: $38,780
You’ll find Hendersonville and its multiple lakes in western North Carolina about 25 miles south of Asheville. Osceola Lake is located just outside the city limits, and larger Lake Lure is about 40 minutes away by car. The median household income here is about $39,000 — the lowest among the cities in this list.
13. Paducah, Kentucky
- Monthly cost of living: $2,927
- Average single-family home value: $176,818
- Median household income: $51,243
Located in western Kentucky, Paducah offers easy access to Kentucky Lake, Lake Barkley, and the adjacent Ohio and Tennessee rivers. You can get a taste of riverboat culture here, as well as visit attractions such as the National Quilt Museum and the city’s historic downtown area. Average monthly mortgages fall just above $1,000.
12. Port Huron, Michigan
- Monthly cost of living: $2,893
- Average single-family home value: $168,927
- Median household income: $49,377
Port Huron sits at the bottom of Lake Huron, with Lake Saint Clair and Lake Erie to the south. It’s the farthest east you can go in the state of Michigan. Average monthly mortgages here come in around $970.
11. Bemidji, Minnesota
- Monthly cost of living: $2,884
- Average single-family home value: $212,927
- Median household income: $53,850
The only city on the list from the state of Minnesota — known as the Land of 10,000 Lakes — Bemidji is situated on the southwest shore of large lake with the same name. There are more than 400 other lakes within a 25-mile radius. Be ready for cold winters, though — the average daily high temperature in January here is just 16 degrees Fahrenheit.
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10. Eufaula, Alabama
- Monthly cost of living: $2,851
- Average single-family home value: $164,612
- Median household income: $45,550
Eufaula is located in southeast Alabama, about 85 miles southeast of Montgomery, along the shores of Lake Eufaula (also known as the Walter F. George Resevoir). Bass fishing is big here, along with other water sports. There is also a historic district and some well-preserved antebellum architecture to check out.
9. Corsicana, Texas
- Monthly cost of living: $2,849
- Average single-family home value: $173,643
- Median household income: $51,240
Corsicana is a city of about 25,000 residents, located 50 miles southeast of Dallas. The Corsicana area’s primary lakes include the Richland-Chambers Reservoir, Lake Halbert and Navarro Mills Lake. Monthly mortgages here average less than $1,000.
8. Alpena, Michigan
- Monthly cost of living: $2,813
- Average single-family home value: $184,896
- Median household income: $47,604
You’ll find Alpena on the shores of Thunder Bay, part of Lake Huron. The city offers easy access to numerous aquatic activities, along with opportunities to explore maritime history. About a fifth of Alpena’s 10,000-ish residents are age 65+.
7. Michigan City, Indiana
- Monthly cost of living: $2,796
- Average single-family home value: $177,358
- Median household income: $52,979
Michigan City sits on the southern shore of Lake Michigan, about 60 miles east of Chicago by car. Nearby attractions include the Lake Michigan Shoreline, Indiana Dunes National Park, Washington Park and the Washington Park Zoo, and the Old Lighthouse Museum. Average monthly mortgages in Michigan City come in just over $1,000.
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6. Corinth, Mississippi
- Monthly cost of living: $2,748
- Average single-family home value: $169,955
- Median household income: $41,243
Corinth is located in northeast Mississippi along the Tennessee state line. Lake enthusiasts have access to nearby lakes such as Bay Springs Lake and Pickwick Lake. Roughly 23 percent of Corinth’s 14,500 residents are age 65 and up, the second highest figure among the 20 cities listed.
5. Muskogee, Oklahoma
- Monthly cost of living: $2,696
- Average single-family home value: $140,587
- Median household income: $48,735
The subject of a famous Merle Haggard song, Muskogee is located about 50 miles southeast of Tulsa in eastern Oklahoma. Nearby lakes include Fort Gibson Lake and Lake Eufaula. The average cost of a monthly mortgage here is just $800.
4. Morgan City, Louisiana
- Monthly cost of living: $2,660
- Average single-family home value: $133,647
- Median household income: $56,729
Morgan City’s average monthly mortgage cost — just $765 — is the second lowest among the cities in this list. Located about 90 miles west of New Orleans, Morgan City is found on the southwest shore of 11,520-acre Lake Palourde. Attractions include the Victor Guarisco Lake End Park.
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3. Lorain, Ohio
- Monthly cost of living: $2,635
- Average single-family home value: $151,018
- Median household income: $45,799
Lorain sits just west of Cleveland on the shores of Lake Erie. The third most populous city in the list, Lorain has about 65,000 residents. In addition to proximity to Lake Erie and plentiful recreation opportunities, Lorain is relatively affordable, with average mortgages below $900 a month.
2. Ashtabula, Ohio
- Monthly cost of living: $2,524
- Average single-family home value: $143,233
- Median household income: $43,782
Also located on Lake Erie, Ashtabula is about an hour’s drive northeast of Cleveland near the Pennsylvania state line. Ashtabula gets a livability score of 68 from AreaVibes, and mortgages hear average $820 a month.
1. Grenada, Mississippi
- Monthly cost of living: $2,493
- Average single-family home value: $123,711
- Median household income: $42,470
Grenada’s low monthly cost of living is due in part to low average mortgage costs — just $708 a month. Residents still enjoy easy access to Grenada Lake, a 90,000-plus acre reservoir that is a haven for fishing, boating and other activities. You’ll find Grenada in north-central Mississippi, about halfway between Jackson and Memphis, Tennessee.
Editor’s note: Photos are for representational purposes only and might not reflect the exact locations listed.
Methodology: For this study, GOBankingRates identified the 20 most affordable lake towns to live in across the United States. The initial list of towns was compiled using rankings from Travel + Leisure’s Best Lake Towns in America, MSN’s Best Lake Towns to Live in America, and Thrillist’s Best Lake Town Destinations in America. Once the locations were selected, GOBankingRates analyzed several key data points sourced from the U.S. Census Bureau’s American Community Survey, including total population, percentage of residents age 65 and over, median household income and total number of households. Cost-of-living indexes were obtained from Sperling’s BestPlaces. To estimate average household expenditures, national data from the Bureau of Labor Statistics’ Consumer Expenditure Survey was used. Home affordability was assessed using the Zillow Home Value Index for single-family homes. Assuming a 10% down payment and a national average 30-year fixed mortgage rate of 6.56% (as reported by the Federal Reserve Economic Data on Sept. 2, 2025), average monthly mortgage costs were calculated for each town. By combining mortgage costs with estimated household expenditures, the total cost of living for basic necessities was determined. The towns were then ranked from most to least affordable. All data is current as of Sept. 3, 2025.
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This article originally appeared on GOBankingRates.com: America’s 20 Most Affordable Lake Towns
