Best Affordable Places to Live in Arizona in 2024
(Last Updated – 11/2023)
With a statewide cost of living standing at about 107% of the national average, Arizona offers a relatively affordable piece of southwestern paradise — especially when you consider that the average is driven up by expensive towns like Sedona. There are plenty of cheap places to live in the Grand Canyon State, and residents can enjoy year-round sun and sprawling desert vistas.
Plus, with a top marginal state income tax rate of just 2.5%, Arizona is one of the least-taxed states in the southwest (outside of neighboring Nevada, which doesn’t have any state income tax at all).
In short, there are plenty of reasons to consider a move to this somewhat-undersung hero of a state. But which cities are the best place in Arizona to live?
Best Places to Live in Arizona
From the wild and wonderful communities in the heart of the state to the shores of Lake Havasu and its major metropoles, too, Arizona truly has something for everyone when it comes to affordable places to live.
Below, we’ve broken these out into several lists depending on your personal needs and life circumstances. In some cases, the same city appears on more than one list. What can we say? Some places in Arizona are just that awesome.
💡 Quick Tip: SoFi’s Lock and Look + feature allows you to lock in a low mortgage financing rate for 90 days while you search for the perfect place to call home.
Best Affordable Places to Live in Arizona
What are the cheapest places to live in Arizona? Glad you asked. Arizona’s statewide cost of living is attractive, but some cities and towns stand out. (Remember that if you are choosing from among several locations to make your new home, you can examine the cost of living by state for each.)
1. Tucson
Photo credit: iStock/DenisTangneyJr
Although there are more affordable (albeit much smaller) communities in Arizona, when it comes to bang for your buck, Tucson takes the cake. Offering a heady combination of cosmopolitan features, a large population, and easy access to some of the most beautiful wildernesses in the country — including Saguaro National Park — Tucson is our pick for those looking to live affordably in Arizona.
Population: 546,574
Median Household Income: $48,058
Cost of Living: 103.7% of U.S. average
Median Rent Price: $1,550
Home Price-to-Income Ratio: 6.7
Average Property Tax: 1.00%
Housing Affordability: An average home value of under $350,000 and median rentals hovering at $1,550 make Tucson a great alternative for those who want affordable housing in a big-city environment — particularly in the west. Plus, a cooling market puts those seeking housing in a favorable position.
2. Sierra Vista
Photo credit: iStock/CochiseVista
Just over an hour southeast of Tucson, Sierra Vista offers another, even more affordable southern Arizona option perfect for those who want all of the above — but with a slower pace of life. With a plethora of outdoor to-dos like Garden Canyon and the Coronado National Museum, coupled with just the right amount of city amenities, Sierra Vista is a hidden gem that’s easy on the eyes and the wallet.
Population: 45,439
Median Household Income: $66,129
Cost of Living: 103.7% of U.S. average
Median Rent Price: $1,100
Home Price-to-Income Ratio: 4.3
Average Property Tax: 0.80%
Housing Affordability: Average home values in Sierra Vista don’t yet top $300,000, making it an accessible option for Arizona first-time homebuyers trying to break into the market. Rent remains affordable at a median $1,100, but prices have increased year-over-year, so the market may soon be warming. If you’re making your debut home purchase, study this first-time homebuyer guide to learn more about the process.
3. Payson
Photo credit: iStock/Danielle Leonard
Sometimes called “the heart of Arizona” thanks to its location very close to the state’s geographical center, Payson is an excellent small-town option for those who are happy to trade big skies for big city lights. Surrounded by endless wilderness opportunities, Payson could be considered the affordable alternative to Sedona — and although its prices are a little higher than, say, Tucson’s or Prescott’s, the scenic locale makes it all worthwhile for some.
Population: 16,653
Median Household Income: $58,109
Cost of Living: Data unavailable
Median Rent Price: $2,000
Home Price-to-Income Ratio: 7.3
Average Property Tax: 0.72%
Housing Affordability: Home values average just over $425,000 right now, which isn’t the cheapest in the state — but is far less expensive than Sedona’s $800,000+. While rents have recently been on the rise, the market remains cool and accessible overall.
4. Lake Havasu City
Photo credit: iStock/DenisTangneyJr
The closest you can get to a California shoreline in landlocked Arizona — both literally and figuratively — Lake Havasu City, as its name suggests, sits along the banks of Lake Havasu, creating a year-round vacation vibe. Along with its plentiful watersports opportunities, the city is famous for its London Bridge. (Yes, that one; originally spanning the Thames in the 1830s, it was reconstructed with the same masonry in 1971.)
Population: 58,926
Median Household Income: $59,817
Cost of Living: 131.9% of U.S. average
Median Rent Price: $1,800
Home Price-to-Income Ratio: 7.7
Average Property Tax: 0.70%
Housing Affordability: Average home prices hover just over $450,000, which isn’t bad for Arizona’s best whack at tropical paradise. Plus, a relatively low property tax rate of only 0.70% helps homeowners keep more of their money in their pocket.
5. Phoenix
Photo credit: iStock/4kodiak
By far the most populous city in Arizona — not to mention its capital — Phoenix might be accused of urban sprawl, but what it really offers is a multiplex of communities that truly mean there’s something for everyone. Plus, with a cost-of-living index only 4% higher than the U.S. average, it’s hard to beat for those looking to live in a big city on a budget.
Population: 1,644,409
Median Household Income: $64,927
Cost of Living: 104.3% of U.S. average
Median Rent Price: $2,031
Home Price-to-Income Ratio: 6.3
Average Property Tax: 0.64%
Housing Affordability: Both rent and purchase prices are higher than in many of Arizona’s smaller communities, but for a big city, they’re comparably very low — and even with a median household income slightly below the U.S. average, the home price-to-income ratio (which succinctly measures the affordability of housing based on how much residents earn) remains at a reasonable 6.3.
Best Places to Live in Arizona for Families
If you’re raising a family, affordability is key — but so are other factors, like the quality of the local school system. Here are some of the most affordable cities in Arizona that are worth a closer look if you’ve got kids.
1. Gilbert
Photo credit: iStock/halbergman
Families looking at Gilbert might appreciate its well-ranked public school system and easy access to all the amenities greater Phoenix has to offer. Gilbert is also a star choice because its overall cost of living remains just under the national average. It’s also one of the closest Phoenix communities to the airport, which is key when it’s time to visit the grandparents. To compete more effectively in the Gilbert market (or any market) as a homebuyer, think about going through the mortgage preapproval process before your search heats up.
Population: 275,346
Median Household Income: $105,733
Median Rent Price: $2,450
Home Price-to-Income Ratio: 5.3
Average Property Tax: 0.64%
Housing Affordability: Even with an average home value of just over half a million dollars, a relatively high median household income of $105,733 keeps Gilbert’s home price-to-income ratio low. A warming rental market means the area is likely to continue growing and expanding as more people decide this is one of the best places to live in Arizona for families. The good news is, this likely means more attractions for kids and adults alike.
Recommended: Mortgage Prequalification vs. Preapproval
2. Peoria
Photo credit: iStock/halbergman
On the other end of the greater Phoenix area, Peoria offers the quintessential suburb experience with an outdoorsy bent: the city extends far enough north to include Lake Pleasant Regional Park, not to mention a stretch of Agua Fria riverfront.
Population: 197,866
Median Household Income: $81,017
Median Rent Price: $2,278
Home Price-to-Income Ratio: 5.9
Average Property Tax: 0.64%
Housing Affordability: Slightly less expensive than Gilbert with the average home price not yet topping half a million dollars, Peoria’s home price-to-income ratio also benefits from a relatively high median household income. The average property tax rate in Maricopa county (which not all of Peoria lies within) is one of the lowest in Arizona at just 0.64%.
3. Tucson
Photo credit: iStock/DenisTangneyJr
Tucson makes the list yet again — for all the reasons we’ve named above, which are even better with kids in tow. Families can enjoy outings to the area’s many beautiful wilderness areas while also taking advantage of in-town to-dos like the Pima Air and Space Museum and Tucson Botanical Gardens. Plus, a low cost of living gives parents the extra funds they need to make ends meet while keeping everyone fed.
Population: 546,574
Median Household Income: $48,058
Cost of Living: 103.7% of U.S. average
Median Rent Price: $1,550
Home Price-to-Income Ratio: 6.7
Average Property Tax: 1.00%
Housing Affordability: It’s hard to beat a median rental price of just $1,550 for a city of this size — and although the 1% average property tax rate is high relative to some other areas of Arizona, it’s still affordable overall, especially when coupled with an average home value of under $325,000.
4. Prescott
Photo credit: iStock/DenisTangneyJr
A central Arizona gem about equidistant from Flagstaff and Phoenix — but off the beaten path — Prescott is a well-forested oasis with lots of charm and great educational opportunities for kids. It’s home to cultural attractions like the Museum of Indigenous People and the Sharlot Hall Museum along with bird-watching opportunities at nearby Watson Lake. Families might be attracted to Prescott as much for its well-regarded public school system.
Population: 47,603
Median Household Income: $61,090
Cost of Living: 116% of U.S. average
Median Rent Price: $2,025
Home Price-to-Income Ratio: 9.6
Average Property Tax: 0.58%
Housing Affordability: While home values do hover over half a million dollars, they’ve been decreasing year-over-year, good news for buyers. Plus, property tax rates are lower even than Maricopa county’s, only slightly above half a percent. Considering a purchase in Prescott? Visit the SoFi Home Loan Help Center to find out more about mortgage options.
5. Flagstaff
Photo credit: iStock/ChrisBoswell
We’ll be frank: Flagstaff is not the most affordable city in the state of Arizona. But for what you get, it’s one of the most affordable midsize-town options in the country, especially if you factor in its proximity to the Grand Canyon (which is just over an hour’s drive away). That makes knocking one big bucket list item off the kids’ list about as easy as possible and helps land Flagstaff on our list of best places to live in Arizona for families.
Population: 75,907
Median Household Income: $61,026
Cost of Living: 114.8% of U.S. average
Median Rent Price: $2,500
Home Price-to-Income Ratio: 10.3
Average Property Tax: 0.63%
Housing Affordability: With an average home value of more than $620,000, Flagstaff is one of the most expensive housing markets we’ve included on this list. The good news? Aside from housing, overall cost of living sits only 14% higher than the U.S. average, which is low relative to many other quaint western mountain towns.
💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.
Best Places to Live in Arizona for Young Adults
For adults between ages 20 and 40, a great place to live is often about job opportunities, social opportunities — and, yes, affordability. Here are some Arizona cities that balance it all.
1. Tucson
Photo credit: iStock/DutcherAerials
Once again, Tucson tops the list — and with all its benefits, how could it not? The substantial population size means plenty of opportunities to mix, mingle, and network, and the proximity to outdoor spaces mean plenty of affordable first dates. Tucson’s median age is under 35 and the city offers plenty of job opportunities in fields ranging from aerospace engineering to healthcare. And — again — it’s about as affordable as big cities come.
Population: 546,574
Median Household Income: $48,058
Cost of Living: 103.7% of U.S. average
Median Rent Price: $1,550
Home Price-to-Income Ratio: 6.7
Average Property Tax: 1.00%
Housing Affordability: Rental prices are low enough that young adults may not need to rely on roommates, and the housing market has plenty of great options for starter homes. Although home values have recently dropped, there’s plenty of room for an upward trajectory.
2. Yuma
Photo credit: iStock/MattGush
With a cost of living about 5% lower than the U.S. average, Yuma is one of the most affordable cities in Arizona overall — and it has a larger population base, which means plenty of opportunities to make friends. Almost always sunny and with lots of outdoor adventures awaiting, Yuma also boasts a growing art scene. Yuma is close to the Mexican border and nearly 60% of county residents are of Hispanic heritage.
Population: 98,527
Median Household Income: $56,292
Cost of Living: 95.8% of U.S. average
Median Rent Price: $1,600
Home Price-to-Income Ratio: 5.0
Average Property Tax: 0.84%
Housing Affordability: Even with a median household income substantially lower than the U.S. median overall, Yuma’s home price-to-income ratio remains at a very reasonable 5.0, thanks to average home values that haven’t topped $300,000. Although the rental market remains cool for now, prices are on the rise, so don’t be too surprised if you see these values travel upward.
3. Cottonwood
Photo credit: iStock/Amanda Wayne
Sweeping mountain vistas, plenty of wineries, and hiking opportunities galore make Cottonwood a first-choice pick for young adults looking for a relaxed and sophisticated lifestyle. A smaller town, Cottonwood is within an easy drive of both Sedona and Prescott, which opens up more amenities and resources — and it’s more affordable to live in than either of those cities.
Population: 12,943
Median Household Income: $39,437
Median Rent Price: $2,250
Home Price-to-Income Ratio: 9.9
Average Property Tax: 0.58%
Housing Affordability: The average home value in Cottonwood is currently around $390,000, whereas nearby Prescott’s values are over half a million dollars — which still pales in comparison to Sedona’s over-the-top prices. All told, for a young adult looking to live in this part of the state, Cottonwood is a solid option.
4. Bisbee
Photo credit: iStock/DenisTangneyJr
For young adults who are willing to live in a truly small town, Bisbee pays dividends — and not just because it’s affordable. A tiny, artsy city situated right along the Mexican border, Bisbee is a great place to live out your bohemian dreams. That said, you might need a remote job based somewhere bigger to make it work.
Population: 5,008
Median Household Income: $41,094
Median Rent Price: $900
Home Price-to-Income Ratio: 5.2
Average Property Tax: 0.80%
Housing Affordability: Bisbee’s median rent price of just $900 is among the lowest on our list, although in such a small community, the rental market is still likely to be tight. Those looking to buy can get in for just over $200,000, which is why the town’s home price-to-income ratio, despite a lower-than-average median household income, remains so low — and why it landed on our list of best places to live in Arizona for young adults.
5. Tempe
Photo credit: iStock/JeffreyRasmussen
While most any Phoenix-area suburb would serve young adults, thanks to the city’s large size and plentiful attractions, Tempe is our pick due to its central location and its plethora of entertainment options, including the concerts and shows that file through Tempe Center for the Arts as well as yearly outdoor festivals at Tempe Beach Park. As the largest metropolitan area in Arizona, Phoenix has some of the most extensive job prospects in the state. Plus, the median age in Tempe is just 29.6, so young adults will find plenty of peers with whom they can enjoy all these offerings.
Population: 185,950
Median Household Income: $64,080
Median Rent Price: $2,185
Home Price-to-Income Ratio: 7.3
Average Property Tax: 0.64%
Housing Affordability: While a median rent price of $2,185 isn’t the lowest in the state by any stretch, prices have been falling year-over-year, which means there may be some wiggle room for those looking to get on the market. For buyers, the low average property tax rate is a plus.
Best Places to Live in Arizona for Retirees
Where better to live out one’s golden years than in a land of golden sands and sunsets? (And did we mention that Arizona, as a whole, doesn’t tax Social Security benefits?) Of course you could visit (some cities in Arizona see their population double between December and March). But why not settle down in one of these best places in Arizona for retirees?
1. Sierra Vista
Photo credit: iStock/Cheri Alguire
With southerly climes staying warm all year long — no shoveling — and an easy proximity to the bigger-city resources of Tucson, Sierra Vista is the perfect locale for seniors. Sierra Vista offers a sleepier lifestyle and lower prices than its bigger-city cousin, and almost a fifth its population is aged 65 or over.
Population: 45,439
Median Household Income: $66,129
Median Rent Price: $1,100
Home Price-to-Income Ratio: 4.3
Average Property Tax: 0.80%
Housing Affordability: Sierra Vista’s home price-to-income ratio is one of the lowest on our list at just 4.3, thanks to home values hovering under $300,000. Rentals are fairly affordable, too, with a median price of just $1,100.
2. Prescott
Photo credit: iStock/DenisTangneyJr
Another mid-sized city that might appeal to older residents, Prescott boasts a population that’s almost 40% aged 65 or over — and given its tranquil pace of life and gorgeous surroundings, it’s no surprise why. Multiple clubs and activities geared towards seniors mean a retirement in Prescott should be anything but boring.
Population: 47,603
Median Household Income: $61,090
Cost of Living: 116% of U.S. average
Median Rent Price: $2,025
Home Price-to-Income Ratio: 9.6
Average Property Tax: 0.58%
Housing Affordability: Average home values of over half a million dollars do push Prescott’s home price-to-income ratio up, but the average property tax rate is nice and low, which is good for those on a fixed income. For retirees looking to downsize from a larger house in a bigger city, Prescott could still be an affordable option.
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3. Cottonwood
Photo credit: iStock/Cheri Alguire
Yes, Cottonwood is just as appealing for those at the end of their careers as those at the beginning — because who doesn’t want to relax with a beautiful glass of wine in front of a gorgeous vista at the end of the day? With a median age of 54, it’s clear that Cottonwood appeals to those thinking about retiring.
Population: 12,943
Median Household Income: $39,437
Median Rent Price: $2,250
Home Price-to-Income Ratio: 9.9
Average Property Tax: 0.58%
Housing Affordability: Although Cottonwood’s home price-to-income ratio looks high, the figure is inflated by the city’s relatively low median household income. Average home prices currently sit below $400,000, making this market accessible for many retirees and young adults alike.
4. Casa Grande
Photo credit: iStock/MattGush
For Phoenix-area retirees looking to get some distance from the hustle and bustle — or those from anywhere just looking for an affordable, sunshiney place to live — Casa Grande is an excellent pick for a retirement option near Arizona’s capital. Plus, it’s home to the well-rated Banner Casa Grande Medical Center and Hospital.
Population: 60,032
Median Household Income: $59,175
Median Rent Price: $1,902
Home Price-to-Income Ratio: 5.5
Average Property Tax: 0.75%
Housing Affordability: Average home values under $400,000 keep Casa Grande’s home price-to-income ratio at a very reasonable 5.5. For those in the rental market, prices have dropped year-over-year, and a cool market means not too much competition.
5. Lake Havasu City
Photo credit: iStock/DenisTangneyJr
Why not retire where others vacation? Lake Havasu City offers retirees the opportunity to enjoy the waterfront every day of their golden years, if they like, and it’s a whole lot cheaper than moving to Malibu. Look north of Lake Havasu, in Bullhead City, for less costly lake-adjacent lodgings and a noticeably lower cost of living.
Population: 58,926
Median Household Income: $59,817
Cost of Living: 131.9% of U.S. average
Median Rent Price: $1,800
Home Price-to-Income Ratio: 7.7
Average Property Tax: 0.70%
Housing Affordability: Even with average home prices creeping up on half a million dollars, Lake Havasu City is one of the most affordable beachfront retirement options in the book — consider Miami’s prices, which are closer to $600,000. The rental market is cool, which means plenty of opportunities to find your dream space without cutthroat competition.
Best Places to Live in Arizona Near the Mountains
Arizona’s beautiful in so many different ways, just about everywhere you go. But some people get so caught up in its canyons that they forget about its stunning mountains — which are also home to plenty of wonderful, affordable communities to choose from.
1. Prescott
Photo credit: iStock/benedek
Once again, Prescott makes our list, this time for its proximity to the Bradshaw Mountains and the Granite Mountain Wilderness area. Both make for a beautiful backdrop to day-to-day life in the city — and offer excellent outdoor recreational opportunities for those who feel called to explore them.
Population: 47,603
Median Household Income: $61,090
Cost of Living: 116% of U.S. average
Median Rent Price: $2,025
Home Price-to-Income Ratio: 9.6
Average Property Tax: 0.58%
Housing Affordability: Again, while Prescott doesn’t boast the cheapest housing market on this list, it is far more affordable than, say, Sedona, where a jumbo mortgage loan might be needed. And you can get to Sedona in just under 90 minutes. Although rental prices have dropped over the last year, the market is warming.
2. Payson
Photo credit: iStock/Danielle Leonard
The perfect option for people who want to live within a stone’s throw of a big city — but far enough away to see the stars at night — Payson is just an hour and a half from the heart of Phoenix, but totally surrounded by untouched wildernesses. The vast expanse of Tonto National Forest is just one option; Payson is also close to several gorgeous mountain ranges.
Population: 16,653
Median Household Income: $58,109
Median Rent Price: $2,000
Home Price-to-Income Ratio: 7.3
Average Property Tax: 0.72%
Housing Affordability: Home values in Payson average about $425,000, but that figure has dropped about 4% over the last year. The rental market, on the other hand, has seen some price increases, but overall remains cool with decent availability.
3. Bisbee
Photo credit: iStock/DenisTangneyJr
Located right alongside the Mule Mountain range, Bisbee offers a smaller and more laidback opportunity to enjoy an outdoorsy life with a small but mighty home base — in a community of only 5,000 or so, you’ll be sure to know your neighbors. If you need bigger city resources, Sierra Vista is just a half hour away.
Population: 5,008
Median Household Income: $41,094
Median Rent Price: $900
Home Price-to-Income Ratio: 5.2
Average Property Tax: 0.80%
Housing Affordability: Bisbee remains one of the most affordable housing markets on this list, though those who move there must be prepared for a remote, very small-town existence. Home prices average about $211,000 at the time of this writing, and have been on the upswing.
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4. Douglas
Photo credit: iStock/JeffGoulden
A border town just across the way from Mexico’s Agua Prieta, Douglas boasts the beautiful view of the Chiricahua Mountains to the northeast. And with median rental prices sitting at just $500, this is by far one of the most affordable communities on the list.
Population: 15,589
Median Household Income: $39,479
Median Rent Price: $500
Home Price-to-Income Ratio: 3.8
Average Property Tax: 0.80%
Housing Affordability: Even with a much lower than average median household income, Douglas enjoys a home price-to-income ratio of only 3.8 — after all, average home values are about $150,000. It is a town with little to do outside of activities in the great outdoors, however, so it’s an option best kept for those who feel better on a trail than at a nightclub.
5. Flagstaff
Photo credit: iStock/Stephen J Taylor
Although it’s not the most affordable city in Arizona by a long shot, we couldn’t not include Flagstaff on this list of the best places to live in Arizona near the mountains. Just a little over an hour away from the Grand Canyon, Flagstaff is an outdoor lover’s delight — and there are plenty of wild adventures to get into outside of the national park. The right loan terms can make all the difference in whether a place like Flagstaff is affordable to your family, so study up on the different types of home mortgages.
Population: 75,907
Median Household Income: $61,026
Cost of Living: 114.8% of U.S. average
Median Rent Price: $2,500
Home Price-to-Income Ratio: 10.3
Average Property Tax: 0.63%
Housing Affordability: Although average home values are more than $600,000, Flagstaff’s rental market remains cool, and prices have dropped since last year. Plus, its average property tax rate is low at just 0.63%. And for some, the surrounding nature is simply worth it.
The Takeaway
With an overall cost of living just about on par with the American average, Arizona is home to several cities with a much lower cost of living than other western options. Relatively low income tax rates and sunny days make the Copper State well worth the move for many.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
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FAQ
Where is the cheapest and nicest place to live in Arizona?
While “nicest” is subjective, Tucson is one of the cheapest cities in Arizona — and for those who are okay with a slightly smaller-town vibe, Yuma is another affordable option.
How much money do you need to live comfortably in Arizona?
Everyone has their own definition of living comfortably, but a living wage in Arizona could range from $36,985 for a single adult to $99,853 for two adults with two children.
Are Arizona home prices coming down?
In some communities, Arizona home prices are falling, but in others, they’re on the rise. The housing market is a dynamic ecosystem that constantly changes, so check in the specific area you’re considering for an up-to-the-minute view of what’s going on.
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