Paradise Valley, AZ

Very High · 378

Arizona · Population 12,621 · Updated March 2026

$3,501
Median Rent / Month
$236,250
Median Income
$2,000,001
Median Home Value
$3,263
Owner Costs / Month

Affordability

How far your income goes in Paradise Valley

17.8%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

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

$42,012
Annual Rent
$5,906
State Income Tax
$12,400
Property Tax (est.)

Cost of Living Overview

Paradise Valley has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 378 (where 100 equals the national median), Paradise Valley residents can expect to pay median rent of $3,501/month while earning a median household income of $236,250/year.

The median home value in Paradise Valley, AZ is $2,000,001, with typical monthly owner costs around $3,263 including mortgage, insurance, and taxes. The median rent-to-income ratio of 17.8% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

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 Paradise Valley.

Frequently Asked Questions

Common questions about living costs in Paradise Valley

What is the cost of living in Paradise Valley, AZ?
The cost of living index in Paradise Valley, AZ is 378 (US average = 100). Median monthly rent is $3,501, median household income is $236,250/year, and the median home value is $2,000,001.
Is Paradise Valley, AZ affordable?
No, Paradise Valley is more expensive than the national average with a cost index of 378. The rent-to-income ratio is 17.8%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Paradise Valley, AZ?
The median gross rent in Paradise Valley, AZ is $3,501 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $42,012.
What is the median household income in Paradise Valley?
The median household income in Paradise Valley, AZ is $236,250 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%.