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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Dollar for dollar, few states match New Mexico's value. 2 out of 3 cities undercut the national cost index of 111. Leading the pack: Albuquerque at index 85, where median rent of $1,457/month saves renters $5,256/year versus the national median (we double-checked this one).
#1 Ranked: Albuquerque — cost index 85, rent $1,457/mo, income $65,604
2 of 3 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
Dollar for dollar, few states match New Mexico's value. 2 out of 3 cities undercut the national cost index of 111. Leading the pack: Albuquerque at index 85, where median rent of $1,457/month saves renters $5,256/year versus the national median (we double-checked this one).
Here's Albuquerque by the numbers — and there's a lot to like (and a little to watch). Cost index: 85. Rent: $1,457/month. Income: $65,604/year. Home price: $338,329. Population: 560,274. The strongest category is Housing at 85; the most expensive is Healthcare at 97. Translate that rent to annual numbers, and residents are saving renters $5,256 per year vs. the national median. This combination is rare — and valuable.
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 (and that gap widens if you factor in state taxes).
| Rank | City | Population | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Albuquerque | 560,274 | 85 | $1,457 | Details |
| 2 | Las Cruces | 114,892 | 75 | $1,290 | Details |
| 3 | Rio Rancho | 110,660 | 111 | $1,902 | Details |
560,274 residents · New Mexico
Real talk: Albuquerque is one of the cheaper options here. Rent is $1,457/month, which is lower than most cities in this ranking. The cost index is 85. Income sits at $65,604. It's fine. Not great, not bad.
114,892 residents · New Mexico
Here's Las Cruces by the numbers — and there's a lot to like (and a little to watch). Cost index: 75. Rent: $1,290/month. Income: $55,176/year. Home price: $286,242. Population: 114,892. The strongest category is Housing at 75; the most expensive is Healthcare at 95. Translate that rent to annual numbers, and residents are saving renters $7,260 per year vs. the national median. This is worth factoring into any relocation decision.
110,660 residents · New Mexico
Rio Rancho is one of the cheaper options here. Rent is $1,902/month, which is lower than most cities in this ranking. The cost index is 111. Income sits at $85,755. It's fine. Not great, not bad.
Cities are ranked by total population from the latest Census estimates. Growing populations typically signal economic opportunity — but also rising costs. We pair population data with affordability metrics for context. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Albuquerque ranks #1 in New Mexico for this analysis with a cost index of 85 and median income of $65,604.
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 Rio Rancho (ranked #3) has a cost index of 111 and rent of $1,902/mo — a 26-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.
New Mexico has a 5.9% state income tax rate. Combined state and local sales tax averages 7.595%, and the effective property tax rate is 0.67%.
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.