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By Suzan Haskins, International Living

“Merida is like the French Quarter, but cleaner and safer…like Santa Fe, but cheaper…and it’s what Key West used to be,” says my friend Eric Partney as we linger over cocktails on his terrace one evening.

We’re listing all the things we like about Merida…the reasons we moved here ourselves. We talk about the low cost of living, the practically nonexistent property taxes, the excellent medical care, and the warmth of the people. Merida, the capital of Mexico’s Yucatan state, is at the heart of what once was a vast Mayan empire, and the Mayan influence is everywhere, from food to architecture to attitude. This is a place where no one gets too riled up over anything…a passiveness that may have as much to do with the climate as it does with any genetic predisposition.

The weather is always warm, you see; from October to April, it’s hard to beat…highs are about 85 degrees Fahrenheit during the day and nighttime temperatures drop to a near-perfect 70 degrees. Summers, though, can be too hot for some, as the thermometer can easily reach 100 degrees in the day, and humidity is high. Those who live here spend these hot days inside or in the pool…but always venture out to enjoy the sultry Merida evenings.

Every night of the week—whatever the time of year—you will find live music of a different variety in a different plaza around town. The food vendors will be there, selling freshly made hotdogs, hamburgers, or tacos for a buck or two, and for dessert, a cone filled with homemade ice cream will set you back another dollar.

During the day, you’ll often find students in these same plazas (Merida is known for its fine high schools, technical schools, colleges, and universities), some diligently tapping away on laptop keyboards. The mayor is installing free wireless Internet service in 50 locations around the city, including parks. And 60 million pesos (about $5 million) have been allocated to beautify Centro, the central historic district. Workers are busily restoring and painting facades, removing overhead power lines, and placing them underground. Some city streets will be inaccessible to bus traffic.

The best of genteel, easygoing Old Mexico, Merida offers the sophistication you’d expect of a city with 800,000 inhabitants. There’s great shopping, with several mega malls to choose from. (One features an ice skating rink!) There’s a lively cultural scene, with several theaters, where you can take in a play, the symphony, or the ballet. And there are many excellent health care facilities, including the Clinica Merida and the new Star Medica, with its state-of-the-art laboratory and diagnostic equipment.

There is much to like about Merida. My husband Dan calls it a “town that works.” Compared with many places in Latin America where we have lived or visited, Dan marvels that, in Merida, the streetlights, traffic signals, and fountains all work. It appeals to his Germanic sensibilities that the traffic police here write tickets and tow vehicles that are illegally parked. (And no, they’re not out to get foreigners or solicit bribes.)

Housing is affordable. If you rent a house or apartment from a local in a part of town that isn’t being gentrified by gringos, you can pay $150 or less per month. A two-bedroom colonial home needing renovation near the bustling center of things will run you as little as $29,900. A renovated, move-in-ready one-bedroom lists for $53,000. Or go upscale…a fully renovated three-bedroom, four-bath house with pool and roof terrace (and all appliances) is now selling for $185,000.

The cost of living in Merida is low overall. Your biggest expense will be electricity for your air conditioners. If you use them conservatively (only in bedrooms for sleeping) you may be facing a monthly bill of $100 to $150.

You will save on food if you cook at home or eat like a local in many of the cocinas economicas found around town. A full meal will set you back about $4. A full-time housekeeper will cost you $100 per week. Someone who cleans for a full day once a week gets $20. Best of all, annual property taxes are extraordinarily low. I recently paid the annual taxes for our 6,400-square-foot property: $139.