Housing Costs in Tempe
Housing is typically the largest expense for Tempe residents. As of 2025, the median rent for a 2-bedroom apartment in Tempe is approximately $1,850 per month. For those looking to purchase a home, the typical mortgage payment for a 3-bedroom house falls in the range of $2,100 to $2,600 monthly, assuming a 20% down payment.
It’s important to note that many Tempe neighborhoods have Homeowners Associations (HOAs). While not mandatory, choosing a home with an HOA will add to your monthly costs. Typical HOA fees in Tempe range from $200 to $400 per month.
For comparison, here is a table of housing costs in Tempe:
| Housing Type | Median Monthly Cost |
|---|---|
| 2-Bedroom Apartment Rent | $1,850 |
| 3-Bedroom House Mortgage | $2,100 – $2,600 |
| Typical HOA Fee | $200 – $400 |
Utilities and Energy Bills in Tempe
Utility costs in Tempe are relatively affordable compared to other major metros in the U.S. However, due to the hot desert climate, cooling costs can spike significantly in the summer months.
For an average 2-bedroom apartment, residents can expect to pay around $150 per month for electricity, with summer bills reaching $250 or more. Gas bills are more consistent, averaging $40-$60 monthly. Water, sewer, and trash are often bundled into one bill, which typically falls between $70 and $120.
Here is a monthly estimate of utility costs in Tempe:
- Electricity: $150 (up to $250 in summer)
- Gas: $40 – $60
- Water, sewer, trash: $70 – $120
- Total: $260 – $430 per month
Groceries and Daily Expenses
Tempe residents spend an average of $350 per person on groceries each month. This assumes a mix of dining out and cooking at home. Eating out more frequently or opting for pricier grocery items can easily increase this budget.
In addition to food, it’s wise to factor in costs for household essentials like cleaning supplies, toiletries, and paper goods. A safe estimate is an extra $50 to $150 per month, depending on household size.
To give an idea, here is an example “typical monthly basket” for a Tempe resident:
- Groceries for cooking at home: $250
- Dining out and takeout: $100
- Household essentials: $75
- Monthly total: $425 per person
Taxes and Fees in Tempe
Tempe’s property tax rate is 0.55%, slightly lower than the national average of 0.58%. For a home valued at $400,000, annual property taxes would be approximately $2,200 or $183 per month.
Arizona’s base sales tax rate is 5.6%, with Maricopa County adding 0.7% and Tempe adding an additional 1.8%. In total, Tempe residents pay 8.1% in sales tax on most purchases.
Vehicle registration fees in Arizona are $8 per $100 of assessed value. For example, a car valued at $15,000 would have an annual registration fee of $1,200 or $100 per month. Tempe residents must also pay for trash pickup, which averages $20-$25 monthly.
Monthly Cost of Living in Tempe
To summarize, here is a table showing estimated monthly expenses for three different household types in Tempe:
| Expense | Single Person | Couple | Family of 4 |
|---|---|---|---|
| Housing (rent/mortgage) | $1,400 | $1,850 | $2,400 |
| Utilities | $200 | $300 | $430 |
| Groceries and dining out | $425 | $850 | $1,500 |
| Transportation | $200 | $350 | $600 |
| Healthcare | $250 | $500 | $800 |
| Taxes and fees | $300 | $400 | $500 |
| Total | $2,775 | $4,250 | $6,230 |
Note: These figures represent estimated pre-tax monthly income needed to maintain each standard of living in Tempe.
Lifestyle Considerations in Tempe
When deciding where to live in Tempe, it’s important to weigh factors beyond just cost. Commute times, access to amenities, and quality of life are all important considerations.
Tempe offers a range of living options, from dense urban apartments near Arizona State University to quieter suburban neighborhoods in South Tempe. In general, living closer to downtown provides more walkability and shorter commutes, but comes with higher housing costs. Choosing a home farther from the city center often allows for more space at a lower price, but may mean dealing with longer commutes.
Access to parks, shopping, and good schools is another important factor for many. Tempe has an extensive park system, with over 50 parks citywide. Most neighborhoods are served by the well-regarded Tempe Elementary and Tempe Union High School districts. Tempe Marketplace and Arizona Mills provide ample shopping and dining options.
Frequently Asked Questions
- What salary do you need to live comfortably in Tempe?
To live comfortably in Tempe, a single person needs a pre-tax monthly income of at least $2,800. For a couple, a combined gross monthly income of $4,200 or more is recommended. - Is Tempe cheaper than Phoenix?
Tempe is slightly more affordable than Phoenix overall. Median rent in Tempe is about 5% lower than in Phoenix. However, some expenses like transportation and utilities are comparable between the two cities. - What is the cheapest area to live in Tempe?
The most affordable neighborhoods in Tempe are located in the southern part of the city, farther from downtown and Arizona State University. Areas like Alameda Estates and Tempe Royal Palms offer lower housing costs. - How much money do you need to buy a house in Tempe?
To comfortably afford a median-priced home in Tempe (around $450,000 in 2025), you’ll need a gross household income of at least $100,000, assuming a 20% down payment. This factors in mortgage payments, taxes, insurance, and upkeep. - What are the hidden costs of living in Tempe?
Some hidden costs to consider in Tempe include HOA fees ($200-$400/month), high summer electric bills (up to $250/month), and vehicle registration fees ($100/month). Sales tax of 8.1% can also add up on larger purchases.