5. Hot Springs, Arkansas: Thermal Waters and Mountain Lakes

Hot Springs blends historic spa architecture with the clear waters of Lake Hamilton and Lake Ouachita. The surrounding Ouachita Mountains provide a dramatic natural backdrop.

The citywide median home value is roughly $245,300. While direct Lake Hamilton waterfront homes average around $426,800, off-water homes with deeded boat slips cost significantly less.

Arkansas completely exempts Social Security benefits from state income tax. The state also offers a $6,000 deduction on qualified retirement pay.

Lake Ouachita offers over 40,000 acres of clean, undeveloped waters surrounded by national forest land. Meanwhile, Lake Hamilton provides a lively residential environment lined with marinas and restaurants.