Payson, AZ is not a bad choice. It is at 5000ft so is much cooler than Phoenix. It has a decent hospital and is 1hr 15min from Pheonix International.
Real estate is not over the top expensive.
I disagree. Payson is terrible, just terrible. You would hate it there. Go to Prescott.
Payson is close to the rim and the lakes and woods. If you like fishing, the lakes are stocked with trout, and Woods canyon is pretty:)
Prescott’s got Whisky Row, from the old wild west days:)