Albuquerque, NM Cost of Living (2026)

Albuquerque has a cost of living index of 90, about 10% below the national average. The housing index is 80, meaningfully below the baseline. A one-bedroom apartment in Albuquerque rents for around $900 to $1,200 per month, and median home prices sit near $280,000. The median household income is approximately $52,000. The city's economy is anchored by government and military employment (Kirtland Air Force Base and Sandia National Laboratories are major employers), healthcare, and the University of New Mexico, all of which provide stable but not particularly high wages.

A $100,000 salary in Albuquerque is worth approximately $111,000 relative to the national average. Workers earning at or above the national median will find Albuquerque provides genuine financial breathing room. The combination of below-average housing costs, low property taxes, and a flat geographic layout that keeps commutes manageable makes budgeting straightforward compared to higher-cost metros.

New Mexico has a progressive income tax that tops out at 5.9%. Albuquerque does not charge a separate city income tax. The gross receipts tax in New Mexico functions similarly to a sales tax but applies more broadly, and the combined state and local rate in Albuquerque runs around 8.75%. Property taxes in Bernalillo County are low, with effective rates around 0.7 to 0.9% of assessed value, which meaningfully reduces the total cost of homeownership.

Albuquerque's climate brings specific utility cost patterns. Summers are warm and dry, and the high altitude keeps nights cooler than the latitude would suggest, so air conditioning costs are moderate. Winters are mild by Rocky Mountain standards. Utility bills are generally below the national average year-round. The city also sits at about 5,300 feet of elevation, which some residents factor into fitness, health, and vehicle maintenance considerations.