It could be a combination of factors, one being how you're calculating MPG but also the slow speed stop and go till you get to the highway. Other things that can reduce real MPG are low tire inflation, heavier and/or aggressive terrain tread tires, or larger than stock diameter tires which can reduce apparent MPG by the vehicle traveling further than the odometer indicates, though these latter tire factors would have been present with the prior owner's reported MPG if you haven't changed tires, except he could have factored for a diameter difference in a MPG calculation.
Suppose you're only putting in 19 gallons at a fillup, that puts you at 220/19 = 11.6MPG. Suppose stop and go and neighborhood travel takes it down to 10MPG 1/3rd if your commute time, but it still takes 10 minutes to go 7 miles so your expected MPG could drop to around 15MPG. That is consistent with owner reports with the V8 on sites like this:
Gas Mileage of 2003 Ford Explorer
Tire differences could knock another 1-2MPG off that, old O2 sensors maybe another 1MPG, and this could bring it down to 12-13MPG which isn't far off from 11.6MPG. You mentioned you "cleaned" your air filter. Is it one of those oiled types that maybe fouls the MAF sensor or the MAF sensor just needs cleaned anyway?
It still seems like there might be a couple MPG missing somewhere, which is where getting the fuel trims to see if it's running rich come in if none of the above are issues, or if there's an intermittent misfire, not enough to set a code (maybe pending code?).