Cost of Living in Bagdad, AZ

With a cost of living index of 77, Bagdad, AZ is a very affordable place to live. Living here is 23% cheaper than the national average and 12% below the Arizona state average of 89. Bagdad is a small community of 2,757 residents.

The median household income in Bagdad is $98,641, which is 31% higher than the national median of $75,149. Residents spend roughly 7% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum.

Climate is another factor for anyone considering a move to Bagdad. The area sees an average annual temperature of 56.7°F, with summers averaging 74°F and winters around 40°F. Annual rainfall totals 12.9 inches spread over roughly 61 days.

Everyday prices in the Prescott Valley-Prescott, AZ (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 6 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.