20 Most Affordable Southern Lake Towns

The Southern states offer Americans with modest savings the chance to fulfill their dream of living in a lake town. Key findings from an in-house GOBankingRates study reveal the 20 most affordable Southern lake towns are financially within reach for most budgets. Single-family home prices average at $258k at their peak while cost-of-living expenses do not exceed $3,300 per month.

View More: GOBankingRates Original Research Center

Read Next: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too

Using an existing in-house study from September 2025 outlining the nation’s most affordable lake towns, GOBankingRates isolated the top 20 Southern towns. For each town, the monthly cost of living, single-family home value and median household income is included.

From Florida to Mississippi, check out these 20 affordable Southern lake towns. Want to see how these towns stack up compared to the rest of the country? Read our ranking of America’s 20 most affordable lake towns.

1. Grenada, Mississippi

Median household income: $42,470Average single-family home value: $123,711Total cost of living (monthly): $2,493

See More: 25 Most Livable Cities for Middle-Class Families

Find Out: The Living Wage a Family of 4 Needs in All 50 States

2. Morgan City, Louisiana

Median household income: $56,729Average single-family home value: $133,647Total cost of living (monthly): $2,660

Find Out: What Is the Estimated Median Income for the Upper-Middle Class in 2025?

3. Muskogee, Oklahoma

Median household income: $48,735Average single-family home value: $140,587Total cost of living (monthly): $2,696

4. Corinth, Mississippi

Median household income: $41,243Average single-family home value: $169,955Total cost of living (monthly): $2,748

5. Corsicana, Texas

Median household income: $51,240Average single-family home value: $173,643Total cost of living (monthly): $2,849

That’s Interesting: Warren Buffett Offers One Piece of Estate Planning Advice to the Middle Class

6. Eufaula, Alabama

Median household income: $45,550Average single-family home value: $164,612Total cost of living (monthly): $2,851

7. Paducah, Kentucky

Median household income: $51,243Average single-family home value: $176,818Total cost of living (monthly): $2,927

8. Henderson, North Carolina

Median household income: $38,780Average single-family home value: $187,277Total cost of living (monthly): $2,931

Be Aware: 10 Things the Middle Class Won’t Be Able To Afford in Less Than a Decade

9. Augusta, Georgia

Median household income: $53,134Average single-family home value: $174,452Total cost of living (monthly): $2,936

10. Russellville, Arkansas

Median household income: $48,708Average single-family home value: $211,154Total cost of living (monthly): $211,154

11. Summersville, West Virginia

Median household income: $52,321Average single-family home value: $173,043Total cost of living (monthly): $2,980

View More: 20 Best Cities Where You Can Buy a House for Under $100K

12. Sumter, South Carolina

Median household income: $53,071Average single-family home value: $200,412Total cost of living (monthly): $3,044

13. Albertville, Alabama

Median household income: $57,103Average single-family home value: $205,160Total cost of living (monthly): $3,048

14. Alexander City, Alabama

Median household income: $42,367Average single-family home value: $198,595Total cost of living (monthly): $3,054

Discover Next: The Salary Needed To Afford America’s 50 Biggest Cities

15. Lake Charles, Louisiana

Median household income: $56,864Average single-family home value: $201,197Total cost of living (monthly): $3,067

16. Palatka, Florida

Median household income: $33,628Average single-family home value: $206,953Total cost of living (monthly): $3,102

17. Florence, Alabama

Median household income: $50,396Average single-family home value: $205,391Total cost of living (monthly): $3,128

Learn More: Here’s How Much the Definition of Middle Class Has Changed in the South

18. Mountain Home, Arkansas

Median household income: $42,103Average single-family home value: $239,130Total cost of living (monthly): $3,134

19. Hot Springs, Arkansas

Median household income: $46,441Average single-family home value: $246,676Total cost of living (monthly): $3,253

20. Dayton, Tennessee

Median household income: $56,692Average single-family home value: $257,079Total cost of living (monthly): $3,300

See more original studies and surveys in the GOBankingRates original research center.

Photo disclaimer: Photos are for illustrative purposes only. In many cases, the closest major city outside of the city/county mentioned in the article was used.

Methodology: For this study, GOBankingRates identified the 20 most affordable Southern 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.

More From GOBankingRates

9 Costco Items Retirees Need To Buy Ahead of Fall 5 Ways 'Loud Budgeting' Can Make You Richer, According to Vivian Tu5 Clever Ways Retirees Are Earning Up to $1K Per Month From Home9 Low-Effort Ways to Make Passive Income (You Can Start This Week)

This article originally appeared on GOBankingRates.com: 20 Most Affordable Southern Lake Towns

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.