Most affordable places to live in New Mexico delivers affordability with a cost of living 5-10% below the U.S. average. This is while offering no state tax on income for most seniors. As a result, families earning $54,400 save $710 per year.
Housing costs run 12% lower than national averages across the Land of Enchantment. So if you dream of exploring national parks or soaking in hot springs, New Mexico’s affordable cities make that accessible.
This guide reveals where budgets stretch furthest while maintaining quality of life.
Key Takeaways
- Portales leads affordability rankings with housing costs 30.7% below national averages and median rents at $850 monthly.
- Deming offers the lowest median home prices at $112,800, enabling first-time buyers.
- Retirees save approximately $710 annually through New Mexico’s Social Security tax exemption for singles earning under $100,000 and couples under $150,000.
- Clovis maintains the state’s lowest home-price-to-income ratio at 3.6:1.
- Recreation opportunities include 350+ annual sunshine days in Las Cruces, world-class trout fishing in Farmington, and proximity to three national parks.
Comparing Most Affordable Places to Live in New Mexico
Here’s how top affordable cities compare on prices, rent, and cost of living. These numbers make it easier to see where savings are possible.
| City | Median Home Price | Median Rent | Cost of Living vs US | Best For |
| Deming | $112,800 | $800 | -28.4% | Retirees, rockhound enthusiasts |
| Portales | $132,900 | $850 | -30.7% | College students, first-time buyers |
| Gallup | $134,600 | $800 | -18% to -22% | Cultural enthusiasts, art collectors |
| Roswell | $139,200-$170,000 | $950 | -10% to -28% | Retirees, UFO enthusiasts |
| Las Vegas, NM | $143,900 | $850-$900 | -21.5% | History buffs, architecture lovers |
| Clovis | $160,000 | $850 | -15% to -25% | Military families, first-time buyers |
| Lovington | $162,900 | $900 | -20.6% | Oil workers, tradespeople |
7 Most Affordable Places to Live in New Mexico in 2025
1. Portales
Median Home Price: $132,900
Median Rent: $850/month
Cost of Living: 30.7% below U.S. average
Best For: College students, first-time homebuyers, agriculture professionals, families seeking ultra-low costs
Roosevelt County’s resident enjoy the state’s lowest percentage cost of living. The Eastern New Mexico University brings in an youthful energy to the city.
Furthermore, James Elementary and Portales High School provide average statewide educational performance. Moreover, Blackwater Draw Museum showcases 13,000 years of archaeological finds.
ENMU athletic events unite the diverse community, while the median age is 26. Although, remote location and wind-prone high plains present challenges.
👉Portales offers small-town living at budget-friendly prices. So explore Portales homes for sale!
2. Deming
Median Home Price: $112,800
Median Rent: $800/month
Cost of Living: 28.4% below U.S. average
Best For: Retirees maximizing fixed incomes, rockhound enthusiasts, remote workers, budget-conscious families
The Luna County’s desert gem sits 30 miles from the Mexican border where they embrace ultra-low housing costs. City of Rocks State Park delivers volcanic formations perfect for photography.
The Memorial Elementary and Deming High School serve the district with bilingual education. Moreover, the Great American Duck Race draws visitors each August.
Economic opportunities are in the agriculture and healthcare sector with minimal commute. Although, limited high-paying jobs and a long commute for specialized services need consideration.
👉Deming combines affordability with a welcoming community. So begin exploring Deming homes for sale today!
3. Gallup
Median Home Price: $134,600
Median Rent: $800/month
Cost of Living: 18-22% below U.S. average
Best For: Cultural enthusiasts, Native American art collectors, outdoor adventurers, budget-conscious individuals
Gallup immerses in profound Native American cultural experiences. The Inter-Tribal Indian Ceremonial attracts tribes nationwide for ceremonies.
The Red Rock Park’s crimson sandstone formations provides hiking and biking backdrops. The Route 66 has authentic trading posts where the Native American and Hispanic create a multicultural space.
Gallup McKinley county schools serve students with bilingual programming. However, higher crime rates with safety rating of 45/100 reflect challenges.
👉Gallup offers affordability along with rich cultural heritage. So explore Gallup homes for sale today!
4. Roswell
Median Home Price: $139,200-$170,000
Median Rent: $950/month
Cost of Living: 10-28% below U.S. average
Best For: Retirees seeking warm weather, UFO enthusiasts, military families, healthcare professionals, quirky culture lovers
Southeastern New Mexico balances extraterrestrial kitsch with regional hub responsibilities. The Pecos River flows through town providing fishing and kayaking.
The UFO Festival draws visitors for alien costume contests and intergalactic fun. Moreover, New Mexico Military Institute’s impressive campus supports the downtown architecture.
The diverse population include military families and healthcare workers. The safety rating is 65/100, and exceeds state average. However, the summer temperatures exceeds 100°F.
👉Roswell offers budget-friendly living with unique city character. So start your Roswell homes for sale search today!
5. Las Vegas, New Mexico
Median Home Price: $143,900
Median Rent: $850-$900/month
Cost of Living: 21.5% below U.S. average
Best For: History buffs, architecture enthusiasts, outdoor recreationists, individuals valuing cultural authenticity
Over 900 buildings on the National Historic Register distinguish this town from its namesake. The town still has Spanish colonial and Victorian architecture from 1800s railroad boom era.
Montezuma Hot Springs offers free natural thermal pool in a scenic setting. Furthermore, New Mexico Highlands University adds cultural programming to the 83% Hispanic community.
More than 90 films including “No Country for Old Men” were shot here. Though, limited opportunities beyond government and education employment pose a challenge.
👉Las Vegas offers affordability combined with historic charm. So explore Las Vegas homes for sale now!
6. Clovis
Median Home Price: $160,000
Median Rent: $850/month
Cost of Living: 15-25% below U.S. average
Best For: Military families, first-time homebuyers, agriculture professionals, families prioritizing homeownership accessibility
Eastern plains’ residents gain economic stability from Cannon Air Force Base. Norman Petty Studios recorded several rock ‘n’ roll legends.
The Clovis Municipal Schools serve students with military family support programs. Furthermore, home-price-to income ratio of 3:6:1 makes homeownership most accessible statewide.
The local economy is dependent on base sustainability. Despite that, 64% Hispanic, 26% White, and 6% Black military influenced population creates a diverse community.
👉Clovis offers budget-friendly living with a strong sense of community. So begin exploring Clovis homes for sale!
7. Lovington
Median Home Price: $162,900
Median Rent: $900/month
Cost of Living: 20.6% below U.S. average
Best For: Oil and gas workers, skilled tradespeople, families seeking higher wages with lower costs
Lovington residents gain from the oil and gas prosperity. The median household income is $67,284 despite small-town pricing.
Chaparral Park offers sports fields and family picnic areas. The PRCA Lea County Fair and Rodeo brings cowboys and livestock exhibitions.
Ben Alexander Elementary and Lovington High School has high graduation rates. High school football games brings the residents together. However, economy is vulnerable to oil price fluctuations.
👉Lovington offers affordability with small-town comfort. So explore Lovington homes for sale today!
How We Ranked New Mexico’s Most Affordable Cities in 2025
Our comprehensive analysis uses weighted criteria such as,
- Housing Costs (40%) from Zillow, RentCafe, and HUD Fair Market Rent data
- Overall Costs of Living (20%) from Sperling’s Best Places and Bureau of Labor Statistics
- Employment and Economic Stability (15%)
- Community Safety (10%) using FBI Uniform Crime Reports
- Education Quality (10%) from GreatSchools, Niche rankings, and New Mexico Public Education Department
- Quality of Life Factors (5%)
What Drives Affordability in New Mexico?
New Mexico’s affordability stems from housing costs 12% below national averages. The utilities are also 14% cheaper than typical U.S. markets. However, one bedroom apartment rents rose from $700 in 210 to $1050 in 2025.
Furthermore, median household income increased to $54,400 in 2025, supporting a stable lifestyle. The property tax rates average 0.73-1.33% across the ranked cities.
Energy costs vary with electricity averaging $0.127 per kWh in Lovington. Transportation expenses increase in isolated communities.
Smart Tips for New Mexico Living
- Budget for utility extremes with weather changes.
- Confirm internet reliability at specific addresses.
- Research neighborhood-specific safety ratings.
- Secure employment as job markets are hyper-localized.
- Factor transportation costs for isolated communities.
- Consider seasonal weather challenges such as high wands and summer temperature.
Should You Move to New Mexico?
From Deming’s ultra-low $112,800 median homes to Clovis’ military lifestyle, most affordable places to live in New Mexico makes that possible.
These 7 towns’ housing costs are 10-30% below national averages, while providing outdoor recreation. Elimination of Social Security taxes saves retirees $710 each year.
So, whether your priority is affordability or cultural immersion, affordable New Mexico cities make that accessible.
👉Ready to explore New Mexico homes for sale?
Frequently Asked Questions
What is the most affordable place to live in New Mexico?
New Mexico's most affordable city is Portales with costs 30.7% below U.S. averages and $850 median rent. Deming offers the lowest median home price at $112,800 for homebuyers prioritizing purchase price over overall living expenses.
What are the top 7 most affordable cities in New Mexico?
The top 7 most affordable cities in New Mexico are include Deming ($112,800 homes), Portales ($132,900), Gallup ($134,600), Roswell ($139,200), Las Vegas ($143,900), Clovis ($160,000), Lovington ($162,900).
Which New Mexico cities are best for families on a budget?
For families on a budget, Clovis delivers the best family value with 3.6:1 home-price-to-income ratio and Cannon Air Force Base economic stability. The city maintains strong school systems and recreational opportunities.
What makes New Mexico one of the most affordable states?
Cost of living runs 5-10% below U.S. averages with housing 12% cheaper than national benchmarks. Elimination of Social Security taxes saves senior households $710 annually for singles earning under $100,000. Property tax rates average 0.73-1.33% significantly below high-tax states.
