What is the cheapest city (or town) in mexico to live in?

Question

cost of living?

Answer 1

Cheapest large city I have seen was Merida, Yucatan.  It is a depressed area with many thousands of immigrants from Central America.  

The city itself is old and beautiful and is surrounded by awesome jungle and beautiful ocean beaches.  You could rent a large house for as little as $150 a month - but it might not have complete indoor plumbing and the outdoor courtyard may be your kitchen area where the running water is located.  Don't expect air conditioning unless you are willing to pay top dollar for a place.  Food and transportation is dirt cheap and the local restaurants are very inexpensive and serve great food.  Labor is very cheap if you hire domestic help.

I found even more beautiful economic locations in parts of Central America (Costa Rica, Honduras) and the cost of living there is even more reasonable.  In Honduras you can rent a luxurious home ( including servants) for less than you can rent an apartment in an American city.  

The downside would be that you are in a foreign country: medical services, utilities, trash collection, libraries, schools, laws - everything is different and you will have to adjust.  Many folks I know who lived in C. Amer. had plane fare as their largest expense when they had to come to the U.S. for medical needs.