4 Arizona cities where you can still afford to retire

Loved by snowbirds who migrate down to sunny Arizona in the spring, fall and winter months, The Grand Canyon State has been a popular retirement destination for years. One reason for that is Arizona’s relatively retiree-friendly tax policies, which include no state taxes on Social Security benefits and relatively low property taxes.

But as more and more people move into the state — and as Arizona faces increases in housing, grocery and gas costs — retiring here has become less and less of an affordable option.

So, where in Arizona can you still retire affordably? A study from GoBankingRates aimed to find out. The company examined a number of factors in various Arizona locales — including average home values, household income, mortgage payment and cost of living — to determine the most cost-effective places to retire in the state.

The places you’re likely thinking of don’t make the list. While popular with older folks, Scottsdale, Paradise Valley and even Phoenix aren’t among the company’s top four. Nor are retirement-oriented communities such as Sun City. If you want to retire on the cheap, you may have to go off the beaten path. Or to Tucson.

Here, according to GoBankingRates, are the four most budget-conscious retirement destinations in Arizona.

Bisbee

This free-spirited historical copper mining city in the Mule Mountains of southeast Arizona is home to almost 1,900 retirement-aged people — those ages 65 and older — who comprise 38% of its population.

The county seat of Cochise County offers history museums, ghost tours, art galleries, restaurants and hiking destinations. Its average cost of living — just more than $3,000 a month — is the lowest of the four cities in Arizona on GoBankingRates’ list.

Bisbee also leads the pack in other metrics. While the median household income of Bisbee residents is on the low end — almost $45,000 a year, which is slightly more than Cottonwood’s $43,000 — costs are low, as well. The average monthly mortgage is $1,360, and home values average around $228,221.

But don't take just the study's word for it. Bisbee also has been named one of the best places to live or visit in the U.S. by several outlets, including finance magazine Money. It was the only Arizona city to make the publication’s list in April.

Tucson

The home of the University of Arizona has a significantly larger population than Bisbee. With more than half a million people, it’s the second-largest city in Arizona.

Despite being a college town, more than 82,000 of Tucson residents are retirement-aged, representing 15% of the population. In fact, there are more than double the number of retirement-aged people in Tucson than there are U of A students. There's plenty for retirees to love, too, including numerous retirement communities, art and history museums, theaters, gardens — and Southern Arizona's balmy year-round weather,

Tucson retirees can expect an average cost of living of roughly $3,700 a month. The Pima County seat also has a median household income of $52,049 a year, with an average mortgage cost of $2,036 a month.

Cottonwood

For retirees interested in settling in northern Arizona, Cottonwood may be their best option financially. Situated between Prescott and Sedona, this Yavapai County city calls itself the “heart of Arizona wine country,” according to its website, and boasts an average monthly cost of living of $4,315.

More than 4,000 retirement-aged people reside in Cottonwood, which represents 34% of the population. Cottonwood residents have a median household income of $43,273 a year and pay around $2,400 monthly for mortgage costs.

Popular attractions include state parks and historic monuments, kayaking, fishing and hiking, exploring museums and, of course, wine-tasting — the city is the heart of the Verde Valley Wine Trial.

Tubac

This relatively unknown historic town is technically a census-designated place, and it’s the last city — that’s not a city – on GoBankingRates’ list. A whopping 61% of its residents are older than age 65. But because Tubac is tiny, that amounts to only 842 people.

Situated in southern Arizona’s Santa Cruz County, the small community was the first European settlement in Arizona, You can learn about its length history at Tubac Presidio State Historic Park. Tubac also has a smattering of art galleries in its town square.

Perhaps if you’re not a fan of crowds, enjoy the occasional history museum, art gallery and golf course — and don’t mind going through a U.S. Border Patrol Checkpoint in and out of town — this could be the retirement destination for you.

The average cost of living in Tubac is around $4,700 per month in the community and the monthly mortgage cost is $3,123, slightly more than the other cities on the list.