Cost Of Living in Cottonwood CDP, AZ

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15%

Overall NAT. AVG.

3%

Groceries NAT. AVG.

56%

Housing NAT. AVG.

Date & Last Updated: These cost of living estimates reflect 2026 modeled data using U.S. Census housing inputs and AI-assisted city-level pricing models.

The cost of living index is based on a national average of 100. For example, if the cost of living score is 90, then the estimated cost of living is 10% lower than the national average. If the score is 110, then the estimated cost of living is 10% higher than average. The overall index is calculated using weighted estimates across major everyday expense categories, including housing (30%), groceries (16%), transportation (12%), healthcare (10%), utilities (8%), lifestyle and entertainment (8%), household expenses (8%), and education and childcare (8%). All values are AI-assisted city-level estimates designed for directional comparisons.
Index	Cottonwood CDP	Arizona	National
Cost of living	85	101	100
Groceries	103	101	100
Health care	102	101	100
Housing	44	96	100
Transportation	101	102	100
Utilities	111	111	100
Lifestyle & Entertainment	102	103	100
Household Items	103	101	100
Education & Childcare	99	103	100

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Cost Of Living Quick Facts

The cost of living in Cottonwood CDP is 16% lower than the Arizona average
The cost of living in Cottonwood CDP is 15% lower than the national average
Cottonwood CDP housing is 56% lower than the national average
Arizona general sales tax is 10% higher than the national average
Arizona state income tax is 4% lower than the national average

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Price difference in compared to

Cost of living index
Groceries index
Health care index
Housing index
Transportation index
Utilities index
Lifestyle index
Household index
Educare index

Median Income & Debt-To-Income Ratio

Median Income	Per Year	Per Month	Max Budget (28% DTI)	Max Budget (36% DTI)
Owners	$51,660	$4,305	$1,205	$1,550
Renters	$52,139	$4,345	$1,216	$1,564

A good way to judge both the affordability of the housing and the cost of living in Cottonwood CDP is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Cottonwood CDP has a median income of about $51,660 for people who own homes. Based on that number, a maximum of $1,205 should be spent on expenses related to housing. Renters have a slightly different median income, which is $52,139. Based on this average, renters should spend no more than $1,216 on all rental costs if they want to maintain a non-impoverished standard of living.

Arizona Sales Tax

State	General Sales Tax	With Max Surtax
Arizona	5.6%	10.725%

Arizona Income Tax

State	Income Tax (Low)	Income Tax (High)
Arizona	2.5%	2.5%

Nearby cities with low cost of living

City	Population	Cost of Living Index	National Avg.
Cottonwood, AZ	12,640	104	3.7%
Camp Verde, AZ	11,524	104	3.7%
Lake Montezuma, AZ	4,882	105	5.1%
Dewey-Humboldt, AZ	4,281	106	6.2%
Verde Village, AZ	13,203	108	7.6%
Cottonwood CDP, AZ	192	85	14.9%

Cities with similar population

City	Population	Cost of Living Index	National Avg.
Nikolaevsk, AK	192	106	5.5%
Bluff City, AR	192	78	21.8%
Lewis, CO	192	112	11.6%
Avalon, GA	192	88	12.0%
Kamrar, IA	192	95	5.3%
Cottonwood CDP, AZ	192	85	14.9%