Cottonwood, AZ

Below Avg · 79

Arizona · Population 12,547 · Updated March 2026

$1,080
Median Rent / Month
$47,162
Median Income
$286,000
Median Home Value
$940
Owner Costs / Month

Affordability

How far your income goes in Cottonwood

27.5%
Rent-to-Income Ratio
Moderate
Rent takes 25-35% of median income — moderate affordability.

Tax Burden in Arizona

State-level tax rates that affect your costs

2.5%
Income Tax (Top Rate)
5.6%
Sales Tax
0.62%
Property Tax Rate

Estimated Annual Costs

$12,960
Annual Rent
$1,179
State Income Tax
$1,773
Property Tax (est.)

Cost of Living Overview

Cottonwood is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 79 (where 100 equals the national median), Cottonwood residents can expect to pay median rent of $1,080/month while earning a median household income of $47,162/year.

The median home value in Cottonwood, AZ is $286,000, with typical monthly owner costs around $940 including mortgage, insurance, and taxes. With a rent-to-income ratio of 27.5%, Cottonwood falls within the generally affordable range, though it's approaching the 30% burden threshold.

Arizona has a moderate income tax rate of 2.5%. Combined with a 5.6% sales tax rate and 0.62% effective property tax rate, the overall tax environment is a factor in the total cost of living in Cottonwood.

Frequently Asked Questions

Common questions about living costs in Cottonwood

What is the cost of living in Cottonwood, AZ?
The cost of living index in Cottonwood, AZ is 79 (US average = 100). Median monthly rent is $1,080, median household income is $47,162/year, and the median home value is $286,000.
Is Cottonwood, AZ affordable?
Yes, Cottonwood is more affordable than the national average with a cost index of 79. The rent-to-income ratio is 27.5%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Cottonwood, AZ?
The median gross rent in Cottonwood, AZ is $1,080 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $12,960.
What is the median household income in Cottonwood?
The median household income in Cottonwood, AZ is $47,162 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Arizona?
Arizona has a top income tax rate of 2.5%, a sales tax of 5.6%, and an effective property tax rate of 0.62%.