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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Premium market, smart picks: while Arizona trends above the national average, the gap between the most and least expensive cities here is wider than you'd think. Tucson at index 97 is the standout — offering meaningful savings without leaving Arizona.
Premium market, smart picks: while Arizona trends above the national average, the gap between the most and least expensive cities here is wider than you'd think. Tucson at index 97 is the standout — offering meaningful savings without leaving Arizona.
Tucson earns its position at #1 through a combination that's hard to replicate. The 97 cost index sits 15 points below the national baseline, and the $54,546 median income means purchasing power here is amplified by the low cost base. Homes list at $321,688 — $145,682 below the national median — a genuine ownership opportunity. On the cost side, Utilities leads the way at 89, while Healthcare trails at 100.
An outlier in the best sense.
Now zoom in on the cost categories. Arizona — desert sun, retiree magnet, and fast growth. The 12 cities we track here average a cost index of 110 and median income of $89,827. It lands right near the national baseline, which makes the differences between individual cities all the more important. The typical rent runs $1,772/month, which is $123 less than the national median.
Bottom line: Tucson leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
#1 Ranked: Tucson — cost index 97, rent $1,399/mo, income $54,546
9 of 12 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
547,239 residents · Arizona
The #1 spot goes to Tucson, and the breakdown explains why. Renters here pay $1,399/month — saving renters $5,952 per year compared to the national average. Meanwhile, Utilities is the standout at index 89, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 100. The 31% rent-to-income ratio is a pressure point — for median earners, housing takes more than recommended.
187,050 residents · Arizona
Glendale comes in at #2. Rent is $1,544 a month. Household income is $70,139. The cost of living index is 103. That's about what we'd expect given the state context.
1,650,070 residents · Arizona
Dive into Phoenix's numbers: cost index 104 — a detail that tends to get overlooked — (8 points below national average), rent $1,556/month, income $77,041, and a home price of $407,665. The city's cost profile isn't flat — Utilities is the cheapest category at 95, while Housing runs 109. As a major city with 1,650,070 residents, amenities and job markets are robust.
511,648 residents · Arizona
Dive into Mesa's numbers: cost index 105 (7 points below national average), rent $1,554/month, income $78,779, and a home price of $432,764. The city's cost profile isn't flat — Utilities is the cheapest category at 96, while Housing runs 112. As a major city with 511,648 residents, amenities and job markets are robust.
189,834 residents · Arizona
Why Tempe ranks #5: the numbers tell a clear story. At 108 on the cost index, residents save roughly 4% less than the typical American. Rent sits at $1,679/month while the median household pulls in $77,643/year. The Utilities category is particularly strong at 100, though Housing (120) lags behind. Home prices average $466,198 — $1,172 below the national median.
| Rank | City | Housing Index | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Tucson | 93 | 97 | $1,399 | Details |
| 2 | Glendale | 108 | 103 | $1,544 | Details |
| 3 | Phoenix | 109 | 104 | $1,556 | Details |
| 4 | Mesa | 112 | 105 | $1,554 | Details |
| 5 | Tempe | 120 | 108 | $1,679 | Details |
| 6 | Goodyear | 124 | 110 | $1,767 | Details |
| 7 | Surprise | 125 | 110 | $1,926 | Details |
| 8 | Buckeye | 125 | 110 | $2,004 | Details |
| 9 | Peoria | 128 | 111 | $1,821 | Details |
| 10 | Chandler | 134 | 113 | $1,848 | Details |
| 11 | Gilbert | 147 | 119 | $2,049 | Details |
| 12 | Scottsdale | 182 | 133 | $2,113 | Details |
Tucson ranks #1 in Arizona for this analysis with a cost index of 97 and median income of $54,546.
Tucson, AZ has the lowest housing index at 93, compared to the national average of 100.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Tucson (ranked #1) has a cost index of 97 and rent of $1,399/mo, while Scottsdale (ranked #12) has a cost index of 133 and rent of $2,113/mo — a 36-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Tucson is $1,399/month as of 2026, based on Zillow's Observed Rent Index. This is $496 below the national median of $1,895/month.
The median home price in Tucson is $321,688, which is 5.9× the local median income. Most median-income households would stretch to buy at this ratio. The national median home price is $467,370.
Arizona has a 2.5% state income tax rate. Combined state and local sales tax averages 8.37%, and the effective property tax rate is 0.51%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.