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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
These cities are a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. Albuquerque leads at an index of 85 with rent at just $1,457/month — 23% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026 (tha…
These cities are a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. Albuquerque leads at an index of 85 with rent at just $1,457/month — 23% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026 (that's pre-tax, of course).
So, Albuquerque. Cost index of 85, rent at $1,457/month. It's lower than the national average. Median income is $65,604, which is below the national median. About what you'd guess.
Against the national baseline, though: The national baseline: 111 cost index, $1,895/month rent, $80,367 household income. That's the yardstick. The cities ranked here blow past it — starting with Albuquerque at just 85 on the index.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
#1 Ranked: Albuquerque, NM — cost index 85, rent $1,457/mo, income $65,604
2 of 2 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | AlbuquerqueNM | 85 | $1,457 | Details |
| 2 | TucsonAZ | 82 | $1,399 | Details |
560,274 residents · New Mexico
Albuquerque earns its position at #1 through a combination that's hard to replicate. The 85 cost index sits 26 points below the national baseline, and the $65,604 median income means purchasing power here is amplified by the low cost base. Homes list at $338,329 — $129,041 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 85, while Healthcare trails at 97.
547,239 residents · Arizona
Why Tucson ranks #2: the numbers tell a clear story. At 82 on the cost index, residents save roughly 29% less than the typical American. Rent sits at $1,399/month while the median household pulls in $54,546/year. The Housing category is particularly strong at 82, though Healthcare (96) lags behind. Home prices average $321,688 — $145,682 below the national median.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Albuquerque (ranked #1) has a cost index of 85 and rent of $1,457/mo, while Tucson (ranked #2) has a cost index of 82 and rent of $1,399/mo — a 3-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Albuquerque is $1,457/month as of 2026, based on Zillow's Observed Rent Index. This is $438 below the national median of $1,895/month.
The median home price in Albuquerque is $338,329, which is 5.2× the local median income. Most median-income households would stretch to buy at this ratio. The national median home price is $467,370.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.