Cost of Living in Tempe, AZ

Population 186,419 · Arizona · Data vintage 2023

132

Cost Index
(100 = US avg)

Page updated: April 2026 · Data vintage: 2023 ACS 5-Year

Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Most of Tempe's cost indicators track within a reasonable band of national figures, with median household incomes near $77,643 — a more representative starting point for relocation math than the headline-expensive or headline-cheap cities on either tail.

Cost Overview

Housing 138

Rent 124

Scale: 100 = US national average. Green < 90, Red > 110.

About the Cost of Living in Tempe

The median home value in Tempe is $421,900 — 38% above the national median of $305,000. Median rent runs $1,623/month, 24% higher than the national median of $1,314/month. The median household income of $77,643/year is 4% higher than the US median of $74,580. The local unemployment rate is 5.7%, above 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, Tempe has a cost of living index of 132 versus the US average of 100, meaning it is 32% more expensive.

🏠 Housing

Median Home Value

$421,900

38% above avg

Zillow Home Value

$466,198

Zillow ZHVI

Median Rent

$1,623/mo

24% above avg

Zillow Rent

$1,678/mo

Zillow ZORI

Price-to-Rent Ratio

21.7x

Favors renting

Property Tax Rate

0.6%

Effective rate

HUD Fair Market Rents by Bedroom

Studio

$985

1 BR

$1,055

2 BR

$1,373

3 BR

$1,877

4 BR

$2,092

Owner-occupied 41.6%

Renter-occupied 58.4%

💰 Estimated Monthly Budget

Rent median rent

$1,623

Groceries national estimate

$400

Utilities local estimate

$88

Transportation local gas prices

$126

Estimated Total $2,237/mo

Estimates based on median data and national averages. Actual costs vary.

🛒 Food & Groceries

National BLS average prices (2023). Local prices may vary.

🥚

Eggs (dozen)

$0.548

🍞

White Bread (lb)

$1.912

🥩

Ground Beef (lb)

$5.61

🚗 Transportation

Avg Commute

23.3 min

14% below avg

Gas Price

$3.145/gal

0% below avg

Work From Home

19.4%

Commute Mode

Drove alone

60.6%

Carpooled

8.1%

Public transit

3.3%

Walked

3.9%

Bicycle

2.4%

Work from home

19.4%

⚡ Utilities

Electricity

$0.176/kWh

0% below avg

📋 Taxes

State Income Tax (flat) 2.5%

Total Sales Tax 8.4%

State rate 5.6%

Avg local rate 2.8%

Property Tax 0.6%

💼 Income & Employment

Median Household Income

$77,643

4% above avg

Per Capita Income

$42,371

Unemployment Rate

5.7%

17% above avg

Poverty Rate

16.2%

Labor Force Participation

71.2%

🎓 Education

Bachelor's degree+ 28.9%

Graduate degree 20.6%

👥 Demographics

Median Age 29.9

Male median age 29.3

Female median age 30.5

💨 Air Quality

EPA AQS 2023 — county-level monitoring data

Median AQI 72 — Moderate

11.2%

Good air days/yr

183

Max AQI recorded

PM2.5 days

193

Ozone days

Frequently Asked Questions

What is the cost of living in Tempe, AZ?

Tempe has a cost index of 132 (100 = national average). It is 32% above the national average.

What is average rent in Tempe, AZ?

The median gross rent in Tempe is $1,623 per month based on 2023 Census data.

What is the average home price in Tempe?

The median home value in Tempe is $421,900 according to Zillow and Census data.

What is the median income in Tempe?

The median household income in Tempe is $77,643 per year (2023 ACS 5-year estimates).

What is the sales tax in Tempe, AZ?

The combined state and local sales tax rate in Tempe is 8.4%. The Arizona state income tax top rate is 2.5%.

Is Tempe, AZ affordable?

Tempe is above average in cost of living, with an index of 132 — about 32% higher than the national average.

Tempe at a Glance

Population: 186,419
Median Income: $77,643
Home Value: $421,900
Median Rent: $1,623/mo
Unemployment: 5.7%
Sales Tax: 8.4%

View all cities in Arizona →

Nearby Cities

🗺️ County data for Arizona

Explore county-level cost of living data

Arizona Rankings

Similar Cost Cities

Cities in other states with comparable housing costs