Amarillo vs Tempe
Cost of Living Comparison · 2026
Amarillo
Tempe
The Verdict
The cost gap between these cities is 30.2%, with Amarillo being the more affordable option. A $75,000 income in Amarillo has equivalent purchasing power to $107,432 in Tempe.
Category-by-Category Breakdown
Index values · National average = 100 · Lower is more affordable
Salary Equivalence
A $75,000 salary in Amarillo has the same purchasing power as $107,432 in Tempe.
Conversely, $75,000 in Tempe equals $52,358 in Amarillo.
Living in Amarillo vs Tempe
Housing Costs
Amarillo's housing index of 59 is lower Tempe's 114, translating to median home prices of $195,000 vs $400,000. The $205,000 difference in home prices means roughly $13,320 per year in additional mortgage costs at current rates. Renters face a similar gap: $975/mo in Amarillo compared to $1,600/mo in Tempe, a monthly difference of $625.
Grocery & Food Costs
Grocery expenses index at 92 in Amarillo and 100 in Tempe. A household spending the national average of $475/month on groceries would pay approximately $437/month in Amarillo vs $475/month in Tempe. Amarillo offers a meaningful advantage on everyday food costs, saving roughly $456/year.
Utility Expenses
Utility costs — electricity, gas, water, internet — index at 94 in Amarillo and 96 in Tempe. Monthly utility bills average approximately $376 in Amarillo vs $384 in Tempe. Utility costs are relatively comparable between these two cities.
Healthcare
Healthcare costs index at 104 in Amarillo and 95 in Tempe. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. The 9-point gap reflects real differences in provider costs, insurance market competition, and regional healthcare infrastructure.
Income & Purchasing Power
Median household income is $58,500 in Amarillo and $56,068 in Tempe. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $79,054 and $52,894 respectively. Amarillo residents enjoy stronger real purchasing power despite higher nominal wages.
Relocation Considerations
Under the standard 28% rule, a median-income household can allocate $1,365/month to housing in Amarillo vs $1,308/month in Tempe. In Amarillo, median rent of $975/mo fits within this budget. In Tempe, median rent of $1,600/mo pushes past the recommended limit. The biggest category-level difference between these two cities is Housing, where the gap is 55 index points — focus your budget analysis there.
Frequently Asked Questions
Moving & Relocation Resources
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