12 Beautiful Places in the Caribbean Where You Can Live the Dream for Less Than $500 a Month

Living in the Caribbean for $500 monthly can seem like a far-fetched dream. With its stunning beaches, turquoise waters, and vibrant cultures, the Caribbean has long been a dream destination for travelers seeking luxury or to enjoy some of the world’s most beautiful landscapes.

What if we told you you could make that dream a reality and live in this tropical haven for less than $500 a month? Yes, we get it. It sounds astronomical. But if you choose your destination carefully and make a few sacrifices here and there, it is very much doable.

Whether you’re a digital nomad, a retiree on a budget, or simply looking for an affordable adventure, the Caribbean offers several destinations where your dollar stretches surprisingly far.

Sounds too good to be true? Let’s show you how to do it in these 12 destinations.

Table of Contents

Sosua, Dominican Republic

Sosua, a beach town in the Dominican Republic’s Puerto Plata province, is known for its unique blend of Caribbean charm and European influences. This mix, thanks to its history of Jewish refugee settlement during World War II, gives Sosúa a distinctive cultural and historical richness.

Some noteworthy spots in the town include Sosua Beach, the Jewish Museum, and the nearby El Choco National Park, which features caves, lagoons, and hiking trails.

Now, let’s get down to the cost of living. Data by Livingcost.org reveals that the average cost of a one-bedroom apartment in the city center is $395. Utilities for a single person stand at $32, while for a family of five, they average $50. Now, picture yourself living with your partner in a one-bedroom apartment. The both of you can live modestly for less than $500 per person per month. Yes, it is doable if you plan and stick to your budget.

Isla Mujeres, Mexico

Isla Mujeres is a small island located off the coast of Cancun. This island has so many things to love, including its tranquil atmosphere, stunning beaches and laid-back Caribbean vibe.

You can spend your days relaxing on Playa Norte, which features soft white sands and crystal clear waters. The best thing about this beach is that it’s free for public access.

Other notable things you can explore include the MUSA (Underwater Museum of Art), perfect for snorkeling and diving; Garrafon Natural Reef Park, famous for water sports and ziplining adventures; and historical sites, like the ruins of Hacienda Mundaca, a 19th-century hacienda built by pirates.

🏨 Explore all your hotel options

With so much to explore, you cannot overlook how affordable Isla Mujeres is. One-bedroom apartment rent starts at around $470. With this, it is possible for you and your partner to live off of $500 per month per person. If you are single, consider flat sharing with another single person or even a couple in a two-bedroom apartment, which costs around $715. With this flat-sharing arrangement, you could reasonably pull off the $500 per month limit.

Isla Mujeres is very affordable if you find ways to stay within your budget, such as sharing accommodation and visiting free attractions like Playa Norte.

Beyond its attractions, you will also love its year-round warm climate and proximity to Cancun.

Las Terrenas, Dominican Republic

Las Terrenas is another city where you could easily live off $500 if you plan carefully and live frugally. Its affordability is one of the major reasons a lot of European expats cannot resist it.

During your stay, you can go swimming or relaxing on this town’s beaches, such as Playa Bonita and Playa Coson. You can also head out to El Limon Waterfall, a 164-foot (50-meter) waterfall that can be reached by hiking or horseback riding through the lush jungle.

🏨 Explore all your hotel options

According to Expat Exchange, one-bedroom apartments in Las Terrenas town center range between $200 and $400. Venture out of the town center, and the rent drops to approximately $100, leaving you with manageable amounts for utilities, which average around $50, food, and some adventure. To save more, skip eating out and buy your groceries from local markets. If you have to eat out, consider going to local restaurants or street food vendors. With careful planning and budgeting, you can make the most of your $500 budget in Las Terrenas.

Granada, Nicaragua

According to data crowdsourced by Living Cost, the cost of rent and utilities in a one-bedroom apartment in Granada is around $324. With this, you would remain with just enough for your groceries. You may also consider sharing your apartment with another budget-hunter to avoid being on the edge.

However, this city is not just about saving and saving. You can wander around and admire some of the oldest colonial architecture in the Americas, swim in Lake Granada, hike up the dormant Mombacho Volcano, or visit vibrant markets such as Mercado Municipal for cheap and fresh produce.

All in all, if you strictly adhere to your budget, you can realistically survive with $500 or less in Granada.

Cienfuegos, Cuba

If you have wanted to live in a coastal city on an extremely small budget, consider Cienfuegos in Cuba. According to Numbeo, a 1-bedroom apartment in Cienfuegos city center costs around $360. A 3-bedroom apartment outside the city center, which you can cost-share with two other people, costs $605. You may also consider private homestays, which offer more cost-saving opportunities and are quite common in Cienfuegos. With careful planning and bargain hunting, there is a reasonable opportunity to live off $500.

You will, however, be mistaken to spend all your time hunting for bargains, as Cienfuegos has a lot to explore. You can stroll along Malecón de Cienfuegos, a scenic waterfront that offers beautiful sunsets, or hike and swim in the nearby El Nicho Waterfalls. An evening stroll just admiring the city’s stunning architecture is relaxing enough.

Of all the many things you enjoy in Cienfuegos, do not miss out on Rancho Luna Beach.

Trinidad, Cuba

Here is another Cuban destination because Cuba is one of those countries that is very affordable despite being so beautiful. Trinidad, a UNESCO World Heritage Site, is one of Cuba’s best-preserved colonial towns. This town’s architecture offers a glimpse into the country’s Spanish colonial era.

If you are an outdoor enthusiast, you will like that Trinidad is near the Caribbean Sea and the Escambray Mountains. If you are into beaches, you can always go to Playa Ancón, just a short drive from the town center.

Save this

We'll email this post to you, so you can come back to it later.

However, when in the town, you can explore Plaza Mayor, a charming square surrounded by historic buildings, museums, and churches; Museo Romántico, a museum showcasing 19th-century decor and furniture; and Valle de los Ingenios, a series of valleys once filled with sugar plantations, now a fascinating area to explore historical sites and ruins.

With just $500 monthly, you can rent a 1-bedroom apartment outside the city center and pay for your groceries and utilities.

Santa Marta, Colombia

Santa Marta is a charming destination for every type of traveler. If you are a history buff, you will like that Santa Marta is the oldest surviving city in Colombia. If you are a nature enthusiast, you will enjoy its proximity to the Sierra Nevada Mountains and its beautiful Caribbean coastline.

Your favorite spot could easily become the Tayrona National Natural Park, which features pristine beaches, lush jungles, and archaeological sites.

Budget travelers and digital nomads will love how incredibly affordable Santa Marta is. International Living states Santa Marta is 73% cheaper than Miami, with three-bedroom apartments going for as low as $400-$1,000. Flatsharing the 3-bedroom apartment with other digital nomads, retirees, or travelers would help you live off $500.

Bocas del Toro, Panamá

Places in the Caribbean Where You Can Live for Less Than $500 a Month_Bocas del Toro, Panamá — © JUAN CARLOS MUNOZ / Adobe Stock

Bocas del Toro is an archipelago on the Caribbean coast of Panama, known for its stunning beaches, vibrant coral reefs, and easygoing island lifestyle. Some of the most popular beaches in the area include Red Frog Beach, Playa Bluff, and Starfish Beach. If you are not swimming or relaxing on these beaches, you can explore vibrant coral reefs at sites like Zapatilla Cays and Hospital Point or go dolphin watching at Dolphin Bay.

With so much nature to explore, you will love that Bocas del Toro still offers affordable housing and a generally low cost of living. You could rent an island-style house for as low as $600 and share it with your partner to keep costs below the $500 limit per person. Or, you could go a little lower by renting an apartment outside touristy spots and still get to enjoy the island’s beaches and lush rainforests while living off of $500.

Among the things you will like about Bocas del Toro is that people typically get around on foot or bike. While you may see it as a good way to explore the islands, it is also a great way to reduce transportation costs. You will also like that the markets have abundant fresh produce, going for much less than in regular cities and towns.

Negril, Jamaica

Negril is renowned for its stunning Seven Mile Beach and vibrant local culture, which are waiting to be discovered. You can spend your days sunbathing, swimming, or enjoying watersports on the long, white sandy Seven Mile Beach. Or, you could go cliff diving and snorkeling at Negril Cliffs. Do not miss out on Blue Hole Mineral Spring, a natural spring where you can swim in mineral-rich waters. Negril is truly a nature lover’s haven.

According to Numbeo, a one-bedroom apartment just outside Negril’s center can go for as low as $227, while a three-bedroom apartment can go for $390. If you don‘t mind flat-sharing, you could go for the 3-bedroom apartment and cost-share with other budget hunters. You, however, could still live comfortably in your one-bedroom apartment and still be left with enough for utilities and other living costs.

Ocho Rios, Jamaica

Ocho Rios is another destination where a little sacrifice can see you live modestly off $500. This vibrant town offers a mix of natural beauty, endless adventure, and rich Jamaican culture. With its famous waterfalls, botanical gardens, and rich musical heritage, Ocho Rios is a prime destination for relaxation and exploration.

Some noteworthy highlights include Dunn’s River Falls, perfect for swimming; Mystic Mountain, an adventure park offering a rainforest canopy tour, ziplining, and the famous bobsled ride; James Bond Beach, renowned for its beautiful views and appearance in the James Bond film Dr. No; and Dolphin Cove, where you can swim with dolphins, sharks, and stingrays.

According to Expat Living, one-bedroom apartments start at around $400. Pulling off the $500 limit as a single person can be quite a stretch. It is, however, very doable if you live with your partner. If you are single, getting into a flat-share would be your best route. You could alternatively rent a room in a local’s home, which is pretty common in Ocho Rios. You will save money while at it and fully immerse yourself in the Jamaican lifestyle.

Bluefields, Nicaragua

Lying on Nicaragua’s Caribbean coast, Bluefields is known for its beauty and rich cultural heritage. Its remote location and lush surroundings make it an off-the-beaten-path destination with much to offer.

A small one-bedroom apartment in an average neighborhood costs around $285, leaving you with just enough for other expenses.

For your exploration, head out to Pearl Lagoon, a spot for kayaking, fishing, and exploring small, picturesque villages, or Indio Maíz Biological Reserve, a protected area with diverse wildlife and pristine rainforest.

For a quick break, Bluefields Bay awaits with its beautiful waterfront and charming seafood restaurants.

Hopkins, Belize

If you love the slow pace of a coastal village, Hopkins would let you enjoy the best of it. This charming village features beautiful beaches with numerous active exploration opportunities awaiting. Hopkins Beach stretches for over five miles, offering endless opportunities to swim, sunbathe, or watch sunsets. The Hopkins Lagoon is great for birdwatching and kayaking. You could also visit Cockscomb Basin Wildlife Sanctuary, which is home to over 200 jaguars, hiking trails, and waterfalls.

With so much nature to take in, food, accommodation and day-to-day expenses are super affordable in Hopkins. Rent for a 1-bedroom unit starts at $300, leaving you with sufficient funds to juggle around the other costs.