The Most Affordable Places to Retire in Arizona

Arizona has long been a top retirement destination, attracting snowbirds and retirees with its sunny weather, low property taxes, and no state tax on Social Security benefits. But with the rising costs of housing, groceries, and gas, finding an affordable place to retire in the Grand Canyon State is getting trickier.

A recent GoBankingRates study analyzed various factors—including home values, household income, and overall cost of living—to identify the most budget-friendly retirement destinations in Arizona. Here are the top four places where retirees can still live comfortably without breaking the bank.

1. Bisbee – A Historic & Artsy Escape

• Retirement Population: 38% (1,900+ residents aged 65+)

• Average Monthly Cost of Living: $3,000

• Average Mortgage Payment: $1,360

• Median Home Value: $228,221

Bisbee, a former copper mining town in Southeast Arizona, has evolved into a vibrant arts community with historic charm, ghost tours, museums, and hiking trails. It has the lowest cost of living on this list, making it an ideal spot for retirees looking for affordability and character.

 2. Tucson – A Balance of Culture & Affordability

• Retirement Population: 15% (82,000+ residents aged 65+)

• Average Monthly Cost of Living: $3,700

• Average Mortgage Payment: $2,036

• Median Household Income: $52,049

As Arizona’s second-largest city, Tucson blends urban amenities with natural beauty, offering museums, theaters, botanical gardens, and active retirement communities. With a lower cost of living than Phoenix and access to top healthcare providers, Tucson is a fantastic option for retirees seeking affordability, culture, and great weather year-round.

3. Cottonwood – The Heart of Arizona Wine Country

• Retirement Population: 34% (4,000+ residents aged 65+)

• Average Monthly Cost of Living: $4,315

• Average Mortgage Payment: $2,400

• Median Household Income: $43,273

Located between Prescott and Sedona, Cottonwood is known for its mild climate, wineries, and outdoor activities like kayaking, fishing, and hiking. It offers a quieter, small-town feel while still providing modern conveniences and stunning landscapes.

4. Tubac – A Small Town with Big History

• Retirement Population: 61% (842 residents aged 65+)

• Average Monthly Cost of Living: $4,700

• Average Mortgage Payment: $3,123

For retirees looking for a peaceful retreat, Tubac offers art galleries, golf courses, and historic sites. It has the highest percentage of retirees on this list, making it a true retirement community. If you love history, art, and a slower pace of life, Tubac might be the perfect fit!

Final Thoughts: Where Should You Retire in Arizona?

If you’re looking for the most affordable retirement option, Bisbee tops the list. If you want a balance of affordability and cultural amenities, Tucson is a strong choice. For wine lovers, Cottonwood is a dream, while Tubac offers an artsy, quiet lifestyle.

Wherever you choose, Arizona’s sunshine, tax benefits, and stunning landscapes make it a fantastic place to retire!