3 Of The Top 10 Small Towns For Retirement In 2026 Are In This Underrated 'Flyover State'

When researching the best spots to retire, towns and cities in states like Florida, Arizona, and California might be high on your radar. But if you're looking to spend your retirement years in a small town where you can truly get to know your neighbors, then you might want to explore a few less-populated places. Three of the top 10 small towns for retirement in 2026 are in Iowa, a state people are more likely to fly over on their way to a touristy hotspot than stop off and get to know. Yet Iowa landed three spots on AARP's list of best retirement places with a population between 5,000 and 24,999. Despite not being a popular tourist destination, Iowa has the one and only UNESCO-designated city of literature and a unique road trip across the Loess Hills National Scenic Byway that isn't to be missed.

Pella, which ranked high on AARP's list of small towns for retirees, is home to 10,965 residents, according to data from the U.S. Census Bureau as of July 2024, while 7,440 people call Knoxville home. And the smallest town of the bunch, Orange City in the northwest, is where just 6,547 people reside. The low population count enhances the small-town charm and tight-knit community in each. To make AARP's list, these towns had to score well for factors that include community engagement, walkable neighborhoods, and access to quality healthcare. 

Iowa doesn't get the attention it deserves, and many people don't know it's one of the few states that offers free entrance to state parks, something that retirees may find ideal. Pella ranks third on AARP's list of best places to retire. An Iowa town with strong Dutch heritage, it's just over 40 miles from Des Moines, and a spirited town despite its small size. 

Retirees can stroll Pella's Central Park and surrounding historic district, a place where Dutch charm comes alive in the architecture and historic windmill. The more modern Molengracht Plaza features a lovely canal crossed by bridges and lined with cafés for passing leisurely days. Pella's Historical Village is downtown, too, with 18 historic buildings including the Vermeer Windmill and artifacts that date back to 1840. The museum hosts events that bring the community together, and provides a place for retirees to get involved by volunteering. Pella's annual Tulip Time festival in early May celebrates the towns roots as more than 300,000 tulips bloom. Thousands of Pella residents don traditional Dutch attire and gather for a parade, food, and more at this lively event.

Community gems like the Jaarsma Bakery, with its authentic "Dutch Treats," combine history and community — it was founded by an immigrant from Holland in 1898 and is owned and operated by the same family today. Just a few doors down from the Jaarsma Bakery is the Ulrich Meat Market, where you can find Ulrich's Genuine Pella Bologna. The recipe for the unique blend dates back more than 155 years when John Ulrich created it while traveling to America. It's more than just a market with old world charm, it's a place to gather with neighbors. 

Knoxville — holding the fifth spot on AARP's list of top places for retirees to live — is less than an hour from Des Moines. Known as the "Sprint Car Capitol of the World," Knoxville is where you'll find the Knoxville Raceway. But the races are just one thing that brings people together here, the quaint historic downtown with its shops and restaurants is a gathering place, and Nearwood Winery & Vineyards is where retirees can sip wine and savor a slower place of life. Nearby Elk Rock State Park also lures retirees with plentiful fishing. The Grand Theatre is a Knoxville treasure where the community comes together for live performances, events, and the latest movies — its low admission fee makes it affordable for all.

In Orange City, No. 8 on AARP's list, community is felt in celebrations of Dutch heritage like the annual Tulip Festival. Signs of the small city's Dutch roots are evident in the quaint gable-adorned buildings, but access to the modern 160-acre 18-hole prairie-style Landsmeer Golf Club is something you'd expect from a much larger city. Located an hour drive southeast of Sioux City, Iowa, Orange City is a retiree's escape from big-city life while still being close to medical facilities and airports.

Clubs and organizations give Orange City residents a chance to do something positive for the community, like Orange City Arts, a group that works to engage and support local artists. The Dutch American Heritage Museum is run completely by volunteers, giving retirees an opportunity to share in the community's heritage and engage with visitors by volunteering. An interview on the Orange City website with a couple who moved here from Orange County, California, shared this quote: "Living in a small town we gain a greater sense of the importance of everyone — police, firefighters, EMTs, our utility workers — because we KNOW them, they are our friends and neighbors..."