The Median Home In America’s Best Place To Retire Is Worth About $206,000, Far Below The National Average. U.S. News Picked This Michigan City Over Florida Again

When a Michigan retiree pictures the move, the destination is usually somewhere hundreds of miles south. Florida was Michigan’s largest outbound destination in IRS migration data, drawing 10,659 tax returns in a single year. One national ranking now points the other way. Per 401(k) Specialist’s report of U.S. News data, the median home value in Midland, Michigan, is $206,176. 401(k) Specialist puts the national average home value at $359,870. The first figure is a median and the second is an average, so this isn’t a perfect comparison. Midland’s housing still comes in well below the national figure.

Why U.S. News Put Midland On Top Again

U.S. News & World Report named Midland the best place to retire in its 2027 Best Places to Retire list. The City of Midland says it won “the nation’s top spot for the second year in a row.” U.S. News changed its scoring weights this year to reflect concern about affordability, and Midland “scored high in affordability and retiree taxes, helping it to lock in the top spot.”

Megan Wood, U.S. News assistant managing editor for home services and real estate, explained the change: “It’s no secret that affordability is top of mind for Americans this year, which is why U.S. News updated its weighting criteria to better align with what retirees prioritize. The 2027 rankings reflect key metrics used to highlight the places that best suit retiree needs.” She added: “Retirees are seeking a place that gives them a sense of security and comfort as they live out their golden years. Whether that comfort prioritizes scenic nature spots, access to multi-cultural experiences, or everyday affordability, places like Midland offer financial safety while still providing a good quality of life.”

What Midland Costs Do To Your Portfolio Target

Per 401(k) Specialist, median rent in Midland is $790. 401(k) Specialist puts median household income at $77,812, below the national median of $83,181. Lower local pay helps keep prices down, but it also points to a smaller job market for anyone planning part-time work.

The spending target starts with national data. The average U.S. household spent $81,905 in 2025. Michigan’s cost of living runs at 96.217, below the national benchmark. Scale that spending to Michigan and you get roughly $78,800 a year. An average retired couple collects $3,208 a month from Social Security, or about $38,500 a year. That leaves a gap of about $40,300. With a 4% withdrawal rate, you need around $1 million. At 3.5%, which is safer for a 30-year retirement, you need about $1.15 million. That budget has to cover Medicare Part B at $202.90 a month per person, which comes to roughly $4,870 a year for a couple. If you own a home at Midland prices with no mortgage, your real number could be much lower.

Michigan’s tax treatment also shapes the target. Michigan’s phase-in of its retirement income deduction is complete starting in tax year 2026. It builds on 2025 base limits of $65,897 for individuals and $131,794 for joint filers, with both limits adjusted for inflation. IRA, 401(k) and pension money qualifies.

Brokerage gains and bank interest don’t, so they’re still taxed at 4.25%. A couple taking that $40,300 gap from pre-tax accounts could pay close to Florida’s zero on state income tax. Pull the same money from a taxable brokerage account and you lose that advantage.

Florida Still Earns Its Spots

U.S. News & World Report ranked Homosassa Springs, Florida, No. 2. Per 401(k) Specialist, its median home value is $219,352 and its median household income is $52,459. U.S. News & World Report placed Palm Coast at No. 10. Per 401(k) Specialist, Florida took 42 places on the list, including 19 of the top 100, while Texas had 44. U.S. News & World Report ranked Weirton, West Virginia, No. 3, down from second last year. 401(k) Specialist counts 22 Michigan cities, the third most.

Small City, Big Employer, Real Winters

Per 401(k) Specialist, about 42,828 people live in Midland, while NBC Chicago puts the population at roughly 42,000, notes the city is best known as the longtime home of Dow (NYSE:DOW | DOW Price Prediction), and says it was the only Midwest city in the top 10. City Manager Brad Kaye said: “Receiving this recognition again reflects the passion and commitment our residents, employees, community leaders, and organizations bring to Midland every day.”

Keep in mind that this is one publisher’s weighted score. U.S. News & World Report evaluated 850 places and published 250. U.S. News & World Report weighted six measures using a survey of people 45 and older, with data from Applied Geographic Solutions and government sources.

Check These Before You Call The Movers

Start with property taxes on the specific home you’d buy. Under Michigan’s taxable value cap, a home’s taxable value resets when it sells, so the seller’s tax bill can understate yours. Have a tax professional confirm which of your income sources qualify for the retirement deduction. Price winter heating and snow removal, check how far you’d be from specialists, and count the flights to see family.

A typical couple on Social Security living near Michigan’s spending level needs roughly $1 million to $1.15 million, withdrawn at 3.5% to 4%. Lower housing costs drive that number down. Where you hold the money matters too. Midland’s tax edge works best when withdrawals come from pension and pre-tax retirement accounts, which keeps state tax low. The 4% figure itself is worth stress-testing before you lean on it (we made the full case for an income-first alternative in a free report here).

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