Finding a cheap place to live in New Mexico,can be challenging. Given New Mexico’s higher-than-average unemployment rate, you’ll need a solid job to navigate life here comfortably.
If you choose one of New Mexico’s most affordable places, you’ll free up cash for tickets to Santa Fe’s New Mexico Music Fan Fare or a road trip to Taos. We’re sure there isn’t a wrong place to park your alien mobile in the Land of Enchantment, but some areas are more affordable.
To determine the most affordable places in New Mexico, we used Saturday Night Science to look at Census and Zillow data for home prices, rents, and costs of living.
Table Of Contents: Top Ten | Methodology | Table | FAQs | Summary
The 10 most affordable places to live in New Mexico
What’s the cheapest place to live in New Mexico? The cheapest place to live in New Mexico is Tucumcari.
Whether you’re seeking affordable fun like alien watching in Roswell or snowball fights in Angel Fire, the cheapest places in New Mexico offer unforgettable experiences.
Check out some more reading about New Mexico and the cheapest places in the country:
The 10 Cheapest Places To Live In New Mexico For 2024
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Population: 5,206
Overall Cost Of Living Index: 74
Median Income: $34,424
Median Home Price: $75,709
Median Rent: $672
Tucumcari is a great place to settle down if you’re looking for affordable living. With a median home value of $75,709 and a median rent of only $672, the cost of living in Tucumcari is relatively low compared to other cities in New Mexico.
Affordability isn’t the only reason to consider Tucumcari as your new home. This charming city boasts a population of 5,206 and is the county seat of Quay County. Founded in 1901, Tucumcari has a rich history and a vibrant culture. From its famous Route 66 landmarks to its annual Mesalands Community College’s Dinosaur Museum Powwow, there’s always something to see and do in Tucumcari.
More on Tucumcari: Data | Real Estate
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Population: 6,030
Overall Cost Of Living Index: 79
Median Income: $28,685
Median Home Price: $137,945
Median Rent: $686
You’d have a tough time finding a home in New Mexico for a cheaper price than you can get in Truth or Consequences. Homes here are the fourth lowest in the state, with a median price tag of $137,945. On top of that, renting in Truth or Consequences will only set you back $686/month, about half as much as the average rent in New Mexico.
Truth or Consequences is also home to the Riverbend Hot Springs, and we guarantee that once you sink yourself into some 100 degree water, financial concerns will be the last thing on your mind.
More on Truth Or Consequences: Data | Crime | Cost Of Living | Real Estate
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Population: 8,708
Overall Cost Of Living Index: 81
Median Income: $27,406
Median Home Price: $218,443
Median Rent: $591
Anthony, straddling the New Mexico/Texas line in the El Paso-Las Cruces region, boasts an overall cost of living 13.8% below the New Mexico average.
With a median home value at $218,443 and median rent at $591, it’s the third cheapest place to live in NM, offering budget-friendly living within reach of two major urban centers and Franklin Mountains State Park for some free fun.
More on Anthony: Data | Crime | Cost Of Living | Real Estate
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Population: 14,756
Overall Cost Of Living Index: 82
Median Income: $33,548
Median Home Price: $130,288
Median Rent: $538
Deming is the fourth most affordable city in New Mexico. It has the second lowest median home value at $130,288 and the cheapest median rent at $538.
Located in Luna County, this hub of transport routes provides inexpensive living for its 14,756 residents. Deming delivers on dollars and sense when finding a cheap and fun place to live in New Mexico.
More on Deming: Data | Crime | Cost Of Living | Real Estate
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Population: 11,495
Overall Cost Of Living Index: 83
Median Income: $70,029
Median Home Price: $146,559
Median Rent: $932
If you love paying low prices for great quality, then you’ll love Lovington, the most affordable place to live in New Mexico for 2024. Lovington has the seventh cheapest homes for sale statewide, with a median price of $146,559. Even better, thanks to a median income of $70,029, Lovington residents pay the smallest proportion of their salary on income anywhere in New Mexico.
As a bonus, Lovington is one of the best cities for singles in New Mexico, which seems fitting for a place with a name like “Lovington.”
Lovington is located in southeastern New Mexico.
More on Lovington: Data | Crime | Cost Of Living | Real Estate
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Population: 6,046
Overall Cost Of Living Index: 83
Median Income: $40,899
Median Home Price: $138,410
Median Rent: $666
Located near the Colorado border in the northeastern part of the state, Raton ranks as the sixth least expensive place in New Mexico. Raton has the second cheapest rent on this list, with a median price of $666/month. But that’s not why it makes the cut — they can thank having the fifth lowest home prices in New Mexico for their inclusion here.
If you’re looking for cheap things to do in Raton, definitely visit Sugarite Canyon State Park for high-quality fishing, hiking, boating, hunting, and camping. Raton is also among the safest cities in New Mexico, so don’t worry that you’re trading security for affordability.
More on Raton: Data | Crime | Cost Of Living | Real Estate
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Population: 16,773
Overall Cost Of Living Index: 84
Median Income: $45,545
Median Home Price: $211,033
Median Rent: $718
Sunland Park ranks as the seventh cheapest city in New Mexico. Like other cities on this list, you’ll find Sunland Park parked on the tri-state junction of New Mexico, Texas, and Mexico.
The city’s overall cost of living index of 84 is 10.6% lower than the state average. That means you’ll have your pocket for a trip to El Paso.
More on Sunland Park: Data | Crime | Cost Of Living | Real Estate
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Population: 9,177
Overall Cost Of Living Index: 84
Median Income: $55,631
Median Home Price: $159,642
Median Rent: $815
Located some 75 miles west down Route 66 from Albuquerque, Grants ranks as the eighth most affordable place to call home in New Mexico. We already named Grants as one of the best cities for families in New Mexico, so finding out it’s also the eighth most affordable place to live is like winning the lottery.
Grants is known as the Uranium Capital of the World, which you can learn more about at the world’s only simulated uranium mining museum. Outdoorsy folks will always have something to do for free in Grants as well, between the hikes around El Malpais National Monument or the wonderfully strange Ice Cave & Bandera Volcano.
The overall cost of living in Grants is 19% below the national average, but in terms of housing, the city is even cheaper than that. The median home price in Grants is $159,642, the ninth cheapest in New Mexico.
The median household income in Grants is $55,631, make it even easier to afford the finer things in life. If you want to give Grants a try without committing to a mortgage, the median rent here is a very reasonable $815.
More on Grants: Data | Crime | Cost Of Living | Real Estate
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Population: 30,996
Overall Cost Of Living Index: 86
Median Income: $50,721
Median Home Price: $200,708
Median Rent: $858
Alamogordo is no stranger to the Homesnacks spotlight. We featured it as one of the best places to live in New Mexico. Good amenities, short commutes, safe streets, and a diverse community all make Alamogordo an attractive place to live. Having all those things without breaking the bank really just seals the deal. With a median home price of $200,708 and a median income of $50,721, Alamogordo enjoys the 14th best home price to income ratio in New Mexico.
Alamogordo also has historic ties to American space and military programs, which you can learn more about at the New Mexico Museum of Space History and White Sands Missile Range Museum respectively.
More on Alamogordo: Data | Crime | Cost Of Living | Real Estate
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Population: 21,672
Overall Cost Of Living Index: 86
Median Income: $58,358
Median Home Price: $194,750
Median Rent: $838
Gallup ranks as the tenth cheapest place to live in New Mexico thanks to being an equally great place for renters and buyers. Gallup is the most diverse city in New Mexico with a 40% Native American population, including representatives from the Navajo, Zuni, and Hopi tribes. It’s also the place where residents pay the tenth lowest percentage of their income on housing, for both renting and buying. That’s with a median home price of $194,750 and a median rent of $838.
And don’t worry about being bored here; between the Chaco Culture National Park, the Navajo Code Talkers Museum, Red Rock Park, and Zuni Pueblo, there’s plenty of things to do in Gallup.
More on Gallup: Data | Crime | Cost Of Living | Real Estate
Cheapest places to live in New Mexico FAQs
The county in New Mexico with the lowest cost of living is Dona Ana County. The average living wage in Dona Ana County is $84,047 according to MIT data. Dona Ana County has the lowest cost of living because it has relatively less expensive childcare and housing costs compared to New Mexico as a whole. Childcare costs $13,453 a year in Dona Ana County for two children compared to the New Mexico average of $13,539. Housing costs, defined as a blend of the average rent and average mortgage payment, are $8,808 per year in Dona Ana County compared to $10,722 on average in New Mexico.
The cost of living in New Mexico is 3.8% lower than the US average. According to MIT, the required living wage for a family of four with two working parents in New Mexico is $86,326 vs the national average for a family of four with two working parents of $89,744. The median income of a New Mexico household is $51,243.
The cheapest housing market in New Mexico is Truth or Consequences. The average home value in Truth or Consequences is $84,300, the lowest in the state. The average home value in New Mexico is $175,700, almost 2.1 times higher than Truth or Consequences.
Methodology: How we determined the most affordable places to live in the Land of Enchantment for 2024
Determining affordability for places in New Mexico boils down to how much it costs to live here.
You need to understand your costs relative to what people in the rest of the state are paying.
With that logic in mind, we derived several cost of living statistics from the latest Census American Community Survey 2018-2022 for New Mexico using Saturday Night Science. We indexed the cost of living statistics across the following categories:
- Housing
- Transportation
- Services
- Groceries
- Healthcare
- Utilities
These are then weighted together to produce an overall cost of living index where 100 is the United States average. Anything below 100 is relatively affordable. Anything over 100 is relatively expensive.
We applied the biggest weight to housing as it typically accounts for 25% or more of your budget. Additionally, housing costs are the highest variant cost across a state. We then compare these cost of living metrics for each place in New Mexico to figure out which is the least expensive.
The “Cost of Living Index” allows you to rank all of the 34 places in New Mexico that have more than 5,000 people from least expensive to most expensive. Any ties went to the larger city.
The place in New Mexico with the lowest cost of living according to the data is Tucumcari.
We updated this article for 2024. This report reflects our tenth time ranking the cheapest places to live in New Mexico.
New Mexico Affordabilility Summary
This is an accurate list of the most affordable places to live in New Mexico for 2024, if you’re looking at the cost of living numbers in New Mexico.
The cheapest cities in New Mexico are Tucumcari, Truth or Consequences, Anthony, Deming, Lovington, Raton, Sunland Park, Grants, Alamogordo, and Gallup.
Here’s a look at the most expensive cities in New Mexico according to the data:
- Corrales
- Los Ranchos de Albuquerque
- Taos
For more New Mexico reading, check out:
- Richest Cities In New Mexico
- Best Places To Buy A House In New Mexico
- Worst Places To Live In New Mexico
Cheapest Places To Live In New Mexico
| Rank | City | Population | Cost Of Living Index | Median Income | Home Prices | Rent |
|---|---|---|---|---|---|---|
| 1 | Tucumcari | 5,206 | 74 | $34,424 | $75,709 | $672 |
| 2 | Truth or Consequences | 6,030 | 79 | $28,685 | $137,945 | $686 |
| 3 | Anthony | 8,708 | 81 | $27,406 | $218,443 | $591 |
| 4 | Deming | 14,756 | 82 | $33,548 | $130,288 | $538 |
| 5 | Lovington | 11,495 | 83 | $70,029 | $146,559 | $932 |
| 6 | Raton | 6,046 | 83 | $40,899 | $138,410 | $666 |
| 7 | Sunland Park | 16,773 | 84 | $45,545 | $211,033 | $718 |
| 8 | Grants | 9,177 | 84 | $55,631 | $159,642 | $815 |
| 9 | Alamogordo | 30,996 | 86 | $50,721 | $200,708 | $858 |
| 10 | Gallup | 21,672 | 86 | $58,358 | $194,750 | $838 |
| 11 | Las Vegas | 13,194 | 86 | $39,558 | $186,356 | $690 |
| 12 | Portales | 12,085 | 86 | $49,313 | $130,829 | $778 |
| 13 | Belen | 7,367 | 86 | $38,838 | $244,505 | $831 |
| 14 | Roswell | 48,035 | 87 | $48,298 | $140,780 | $855 |
| 15 | Clovis | 38,453 | 87 | $52,983 | $156,608 | $932 |
| 16 | Artesia | 12,632 | 87 | $75,389 | $204,195 | $850 |
| 17 | Socorro | 8,605 | 87 | $42,622 | $171,400 | $708 |
| 18 | Hobbs | 39,782 | 89 | $63,804 | $173,086 | $1,067 |
| 19 | Aztec | 6,214 | 89 | $45,846 | $226,721 | $810 |
| 20 | Silver City | 9,650 | 90 | $36,853 | $220,801 | $831 |
| 21 | Bloomfield | 7,430 | 90 | $49,442 | $205,766 | $837 |
| 22 | Carlsbad | 31,755 | 91 | $77,209 | $201,720 | $1,143 |
| 23 | Bernalillo | 9,286 | 91 | $57,905 | $312,259 | $967 |
| 24 | Los Lunas | 17,452 | 92 | $68,934 | $298,049 | $1,098 |
| 25 | Ruidoso | 7,696 | 93 | $36,033 | $317,739 | $850 |
| 26 | Albuquerque | 562,551 | 94 | $61,503 | $321,089 | $1,014 |
| 27 | Las Cruces | 111,273 | 94 | $51,013 | $281,919 | $907 |
| 28 | Rio Rancho | 104,351 | 95 | $78,978 | $328,616 | $1,357 |
| 29 | Farmington | 46,457 | 96 | $61,388 | $236,143 | $980 |
| 30 | Edgewood | 6,113 | 97 | $70,568 | $348,936 | $939 |
| 31 | Santa Fe | 87,617 | 105 | $67,663 | $571,512 | $1,314 |
| 32 | Taos | 6,458 | 106 | $40,185 | $454,642 | $953 |
| 33 | Los Ranchos de Albuquerque | 5,894 | 114 | $67,747 | $621,423 | $940 |
| 34 | Corrales | 8,495 | 125 | $94,966 | $668,575 | $1,201 |