New Mexico
NMWest · 6 cities tracked · Updated 2026
New Mexico is cheaper than the national average. Across the 6 cities we track, the cost of living index averages 90 (US = 100) and typical rent averages $1,551 a month, 20% below the national figure of $1,932.
State Averages
Avg Gas Price
$3.84
Regular unleaded
Avg Rent
$1,551
All units/mo
Avg COL Index
90
vs. 100 national avg
New Mexico Cost of Living Analysis
Where the money goes
The biggest break is rent, at 20% below it.
Rent trend
Rent rose an average of 3.8% over the past year across the 6 cities we track, faster than the 2.7% national change. Hobbs saw the biggest move (up 9.1%), while Santa Fe was up just 0.7%.
City to city
Where you live inside New Mexico matters. Typical rent runs from $1,399 in Farmington to $1,953 in Santa Fe, a gap of $554 a month or about $6,648 a year.
Affordability
Rent, gas, groceries, electricity and car insurance take about 49% of median household income in the counties we track, which ranks the 7th highest of 51 states. Median household income there averages $63,961 (Census ACS 2023). Groceries are counted at what the average household in the region spends on food at home (BLS Consumer Expenditure Survey).
Energy and driving
Regular gas costs $3.84 a gallon, 4% below the $3.98 national average. A typical electric bill runs about $149 a month versus $166 nationally, and full coverage car insurance averages $1,980 a year versus $2,150.
Groceries
Grocery prices in the West rose 2.4% over the past year (BLS food at home), compared with 1.8% nationally. Item prices on our city pages are national BLS averages, so local stores may be higher or lower.
Built from the AAA, Zillow, EIA, Bankrate, BLS and Census data on this site. National comparisons use typical rent of $1,932 a month and gas of $3.98 a gallon. See the methodology.
Cities in New Mexico
Albuquerque
New Mexico
Gas
$3.84
Rent
$1,490
Food ↑
+1.8%
Santa Fe
New Mexico
Gas
$3.84
Rent
$1,953
Food ↑
+1.8%
Las Cruces
New Mexico
Gas
$3.84
Rent
$1,472
Food ↑
+1.8%
Farmington
New Mexico
Gas
$3.84
Rent
$1,399
Food ↑
+1.8%
Hobbs
New Mexico
Gas
$3.84
Rent
$1,469
Food ↑
+1.8%
Alamogordo
New Mexico
Gas
$3.84
Rent
$1,524
Food ↑
+1.8%
Median Household Income by County
Source: Census ACS 5-Year 2023 · 33 counties
| County | Median Income |
|---|---|
| 1Los Alamos County | $143,188 |
| 2Sandoval County | $84,053 |
| 3Eddy County | $79,605 |
| 4Santa Fe County | $74,689 |
| 5Lea County | $68,750 |
| 6Bernalillo County | $66,514 |
| 7Taos County | $58,908 |
| 8Valencia County | $58,333 |
| 9Curry County | $56,259 |
| 10Doña Ana County | $55,663 |
| 11Rio Arriba County | $53,901 |
| 12San Juan County | $53,020 |
| 13Otero County | $52,717 |
| 14Colfax County | $52,690 |
| 15Roosevelt County | $52,445 |
| 16Chaves County | $52,029 |
| 17Cibola County | $51,765 |
| 18Lincoln County | $51,643 |
| 19Mora County | $50,178 |
| 20Hidalgo County | $49,076 |
| 21Socorro County | $47,556 |
| 22San Miguel County | $47,400 |
| 23Catron County | $46,439 |
| 24Torrance County | $46,250 |
| 25Grant County | $45,921 |
| 26Union County | $45,319 |
| 27McKinley County | $44,496 |
| 28Quay County | $43,698 |
| 29Harding County | $41,250 |
| 30De Baca County | $40,804 |
| 31Guadalupe County | $40,149 |
| 32Luna County | $37,917 |
| 33Sierra County | $37,840 |
New Mexico Cost of Living FAQ
Is New Mexico expensive to live in?
New Mexico is about 10% cheaper than the national average. Across the 6 cities we track, the cost of living index averages 90, where 100 is the US average.
What is the average rent in New Mexico?
Typical rent in New Mexico averages $1,551 a month across the 6 cities we track as of September 2026, 20% below the national typical rent of $1,932. That ranks near the middle of 51 states. The figure is the Zillow Observed Rent Index for all home types.
What is the cheapest city to live in New Mexico?
Of the 6 cities we track in New Mexico, Albuquerque has the lowest cost of living index at 85. The lowest typical rent is in Farmington, at $1,399 a month.
What is the most expensive city in New Mexico?
Santa Fe has the highest cost of living index of the cities we track in New Mexico, at 95. The highest typical rent is in Santa Fe, at $1,953 a month.
How much is gas in New Mexico?
Regular unleaded averages $3.84 a gallon in New Mexico as of November 11, 2026 (AAA state average), 4% below the national average of $3.98. That is near the middle of 51 states.
Is rent going up in New Mexico?
Rent in New Mexico rose an average of 3.8% over the past year across the 6 cities we track, compared with a 2.7% change nationally.
How much is electricity in New Mexico?
Residential electricity in New Mexico averages 16.5 cents per kWh (EIA), versus 18.4 cents nationally. At 900 kWh a month, a typical bill is about $149.
How much is car insurance in New Mexico?
Full coverage car insurance in New Mexico averages $1,980 a year, or about $165 a month (Bankrate and NAIC), compared with $2,150 a year nationally. That is near the middle of 51 states.