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Plenty of Mexicans live on that or less every month... but your biggest issue will be finding a place to live that you can afford. Inexpensive housing is difficult next to the coast and in popular tourist areas.

Have you considered the beach areas north of Merida? They are cheaper and also lovely... on the Gulf of Mexico instead of the Caribbean, but the same weather.

My dear baggyman: You are more than welcome to Mexico and right now your disability pension comes around to $16,000 mexican pesos (and more if you find a good currency exchange rate)

That´s a very good income considering the following:

1.- You live alone; I mean, you have no family, relatives with you.
2.- You rent a modest place away from "american's"; this is, no at the coast, beach... basicly in nearest typical towns.
3.- Most of the people (families) live with much less than that.
4.- You will not be able to afford luxory cars, luxory homes but you could have a very cheap and decent life down here.

Said that... if you are willing to explore land and suffer a little learning spanish, do your lugage and move on!

Consider your health, transport, grocery and many other expenses... you will not live like rich foreigner but like an average mexican.  Lol!

Have a nice day.