Cost of Living in Cottonwood, AZ
Population 12,547 · Arizona · Data vintage 2023
(100 = US avg)
Cottonwood skews considerably older than the national median, with an average age of 56. Reported household income of $47,162 often reflects pension and investment income rather than wages, which makes the local tax picture — especially property tax treatment — a larger factor than in working-age cities. An unemployment rate of 2.4% points to a labor market well on the tight side of the national distribution.
Cottonwood is about 70 miles north of Peoria, the nearest large metro — close enough that regional housing and labor patterns are shaped largely by the larger market. Median home values run roughly 33% lower than Peoria's $429,000.
Cost Overview
Scale: 100 = US national average. Green < 90, Red > 110.
About the Cost of Living in Cottonwood
The median home value in Cottonwood is $286,000 — 6% below the national median of $305,000. Median rent runs $1,080/month, 18% lower than the national median of $1,314/month. The median household income of $47,162/year is 37% lower than the US median of $74,580. The local unemployment rate is 2.4%, below the national average of 4.8%. Arizona's top state income tax rate is 2.5% and the combined sales tax is 8.4%. Overall, Cottonwood has a cost of living index of 89 versus the US average of 100, meaning it is 11% less expensive.
🏠 Housing
HUD Fair Market Rents by Bedroom
💰 Estimated Monthly Budget
Estimates based on median data and national averages. Actual costs vary.
🛒 Food & Groceries
National BLS average prices (2023). Local prices may vary.
🚗 Transportation
Commute Mode
⚡ Utilities
📋 Taxes
💼 Income & Employment
🎓 Education
👥 Demographics
💨 Air Quality
EPA AQS 2023 — county-level monitoring data
Frequently Asked Questions
What is the cost of living in Cottonwood, AZ?
Cottonwood has a cost index of 89 (100 = national average). It is 11% below the national average.
What is average rent in Cottonwood, AZ?
The median gross rent in Cottonwood is $1,080 per month based on 2023 Census data.
What is the average home price in Cottonwood?
The median home value in Cottonwood is $286,000 according to Zillow and Census data.
What is the median income in Cottonwood?
The median household income in Cottonwood is $47,162 per year (2023 ACS 5-year estimates).
What is the sales tax in Cottonwood, AZ?
The combined state and local sales tax rate in Cottonwood is 8.4%. The Arizona state income tax top rate is 2.5%.
Is Cottonwood, AZ affordable?
Yes, Cottonwood is generally considered affordable, with a cost of living index of 89 — about 11% below the US national average of 100.
Cottonwood at a Glance
- Population
- 12,547
- Median Income
- $47,162
- Home Value
- $286,000
- Median Rent
- $1,080/mo
- Unemployment
- 2.4%
- Sales Tax
- 8.4%
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Arizona Rankings
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