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Arizona starts in downtown Phoenix, on Roosevelt Street, where the artists who took over cheap bungalows and blank walls built the Roosevelt Row arts district.
One Arizona cost runs through every report in the state: low property tax and a flat income tax. Arizona taxes income at one flat rate of 2.5 percent, and property tax is levied on a limited property value that cannot rise more than 5 percent a year, which keeps effective rates low: 0.46 percent at the Maricopa County median and 0.56 percent in downtown Phoenix's ZIP 85004. Sales tax carries more of the load, 9.1 percent combined in Phoenix in 2026, and since January 1, 2025 no Arizona city may tax residential rent on leases of 30 days or more.
Metros
Phoenix
The downtown core and its historic districts: arts blocks, bungalow streets, and the light rail spine up Central Avenue.
Tucson
Barrio streets, streetcar suburbs around the university, and adobe blocks under the Catalinas.
Flagstaff
A mountain town's downtown and railroad era neighborhoods at 7,000 feet.
Sedona
Red rock neighborhoods where the views set the prices.
Latest Arizona Report
Roosevelt Row, Phoenix
Phoenix's downtown arts district, made by the artists who moved into its cheap bungalows and blank walls: murals down Roosevelt Street, galleries in restored houses, First Fridays filling the blocks each month, and the light rail and the downtown core at its door.
Median $470,000Walk Score 94About 0.6 miles to the downtown core
Photo: Chris English, CC BY-SA 3.0, Wikimedia Commons