The 88130 zip code in Portales, New Mexico tops our ranking of the most affordable places to live in the Southwest.
We looked at 1048 zip codes in the region, evaluating home values, rental costs, energy rates, property taxes, and five other affordability indicators. We used the data we gathered to calculate our proprietary Affordability Score for each zip code.
Top 10 most affordable places to live in the Southwest
The Southwest includes Arizona, New Mexico, and Texas.
| Rank | City | Affordability Score | Median home value | Rental costs |
|---|---|---|---|---|
| 1 | Portales, NM 🥇 | 96.6 | $143,369 | $853 |
| 2 | Beaumont, TX🥈 | 96.1 | $85,740 | $946 |
| 3 | Big Spring, TX 🥉 | 93.2 | $134,565 | $1,247 |
| 4 | Clovis, NM | 92.7 | $154,852 | $1,095 |
| 5 | Hobbs, NM | 91.7 | $168,887 | $1,172 |
| 6 | Nederland, TX | 90.7 | $196,711 | $1,196 |
| 7 | Victoria, TX | 90.0 | $143,713 | $993 |
| 8 | Port Arthur, TX | 90.0 | $108,678 | $953 |
| 9 | Silsbee, TX | 89.7 | $161,964 | $1,286 |
| 10 | Borger, TX | 88.9 | $93,137 | $1,657 |
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1. Portales, New Mexico
Here's why the 88130 zip code in Portales is the region's most affordable place to live.
🔎 Key data about Portales
| Data point | Value | Rank (out of 1048 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 96.6 | No. 1 | N/A |
| Median home value | $143,369[1] | No. 3 | -$222,136.17 |
| Home affordability ratio | 2.7 | No. 4 | -2.3 |
| Home value five-year change | 8.2%[2] | No. 2 | -39.4% |
| Home value one-year forecast | -2.7%[3] | No. 3 | -3.4% |
| Rental costs | $853[4] | No. 1 | -$832 |
| Rent affordability ratio | 1.61% | No. 1 | -0.7% |
| Median household income | $52,795[5] | No. 38 | -$20,731 |
| Property taxes | $611[6] | No. 2 | -$2,192 |
| Energy costs | $0.13 kWh[7] | No. 9 | -$0.01 |
Portales's 88130 zip code is the cheapest place to live in the Southwest, leading the 1048 markets we evaluated.
The median home value is $143,369, making it the 3rd-cheapest housing market in the region. Forecasts project a -2.7% change in home values in the next year. Rent in the zip code averages $853 per month, which is the 1st-cheapest amount in the Southwest.
The median property tax for homeowners in Portales is $611 per household, the No. 2 ranked market in the Southwest.
Residents pay $0.13 per kWh of electricity, which ranks No. 9 among the region's markets.
2. Beaumont, Texas
The 77701 zip code is the 2nd-cheapest place to live in the Southwest.
🔎 Key data about Beaumont
| Data point | Value | Rank (out of 1048 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 96.1 | No. 2 | N/A |
| Median home value | $85,740[8] | No. 5 | -$279,765.62 |
| Home affordability ratio | 1.8 | No. 4 | -3.1 |
| Home value five-year change | 7.0%[9] | No. 16 | -40.6% |
| Home value one-year forecast | -4.5%[10] | No. 12 | -5.2% |
| Rental costs | $946[11] | No. 8 | -$739 |
| Rent affordability ratio | 2.03% | No. 263 | -0.3% |
| Median household income | $46,653[12] | No. 699 | -$26,873 |
| Property taxes | $939[13] | No. 4 | -$1,864 |
| Energy costs | $0.13 kWh[14] | No. 31 | $0.00 |
Beaumont's 77701 zip code has a median home value of $85,740, which is the 12th-cheapest housing market in the Southwest. You can rent for an average of $946 per month. That's the 8th-cheapest price in the region.
The average household income in the zip code is $46,653, which ranks 699th-highest in the Southwest.
Homeowners in Beaumont pay a median property tax of $939 per year, making it the 4th-most affordable market in the region.
Beaumont ranks No. 31 among the region's energy markets. You'll pay $0.13 per kWh of electricity.
3. Big Spring, Texas
The 3rd-cheapest place to live in the Southwest is Big Spring's 79720 zip code.
🔎 Key data about Big Spring
| Data point | Value | Rank (out of 1048 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 93.2 | No. 3 | N/A |
| Median home value | $134,565[15] | No. 41 | -$230,940.19 |
| Home affordability ratio | 2.0 | No. 5 | -3.0 |
| Home value five-year change | 40.1%[16] | No. 384 | -7.5% |
| Home value one-year forecast | -6.7%[17] | No. 2 | -7.4% |
| Rental costs | $1,247[18] | No. 68 | -$438 |
| Rent affordability ratio | 1.87% | No. 190 | -0.4% |
| Median household income | $66,655[19] | No. 441 | -$6,871 |
| Property taxes | $1,600[20] | No. 61 | -$1,203 |
| Energy costs | $0.14 kWh[21] | No. 141 | $0.00 |
The No. 41 cheapest housing market in the Southwest is Big Spring's 79720 zip code, with a median home value of $134,565. Rents in the market average $1,247 per month, making it the 68th-most affordable rental market in the region.
The median property tax for households in Big Spring is $1,600, which makes it the 61st-cheapest place in the Southwest. Big Spring ranks No. 141 among the region's markets by energy costs. Residents pay $0.14 per kWh of electricity.
4. Clovis, New Mexico
The 88101 zip code in Clovis comes in at No. 4 on our list of the cheapest places to live in the Southwest.
🔎 Key data about Clovis
| Data point | Value | Rank (out of 1048 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 92.7 | No. 4 | N/A |
| Median home value | $154,852[22] | No. 5 | -$210,653.96 |
| Home affordability ratio | 2.8 | No. 6 | -2.2 |
| Home value five-year change | 13.9%[23] | No. 3 | -33.7% |
| Home value one-year forecast | -2.3%[24] | No. 7 | -3.0% |
| Rental costs | $1,095[25] | No. 4 | -$590 |
| Rent affordability ratio | 2.00% | No. 3 | -0.3% |
| Median household income | $54,824[26] | No. 33 | -$18,702 |
| Property taxes | $937[27] | No. 7 | -$1,866 |
| Energy costs | $0.13 kWh[28] | No. 9 | -$0.01 |
The No. 4 cheapest housing market in the Southwest is Clovis's 88101 zip code, where the median home value is $154,852. Renters here pay an average of $1,095 per month.
When it comes to energy costs, Clovis ranks 9th among the region's markets. Residents pay $0.13 per kWh of electricity.
The median property tax for households in the zip code is $937, which makes it the 7th-cheapest market in the Southwest.
5. Hobbs, New Mexico
The 88240 zip code in Hobbs ranks No. 5 among the region's most affordable places to live.
🔎 Key data about Hobbs
| Data point | Value | Rank (out of 1048 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 91.7 | No. 5 | N/A |
| Median home value | $168,887[29] | No. 7 | -$196,618.91 |
| Home affordability ratio | 2.7 | No. 3 | -2.3 |
| Home value five-year change | 47.6%[30] | No. 25 | 0.0% |
| Home value one-year forecast | -7.5%[31] | No. 2 | -8.2% |
| Rental costs | $1,172[32] | No. 6 | -$513 |
| Rent affordability ratio | 1.86% | No. 2 | -0.4% |
| Median household income | $63,083[33] | No. 23 | -$10,443 |
| Property taxes | $812[34] | No. 5 | -$1,991 |
| Energy costs | $0.13 kWh[35] | No. 9 | -$0.01 |
Hobbs's 88240 zip code has a median home value of $168,887, the 7th-cheapest market in the region. Forecasts project a -7.5% change in home values in the next year.
The median property tax per household in Hobbs is $812. It's the 5th-cheapest market by tax rate in the Southwest.
6. Nederland, Texas
The No. 6 most affordable place to live in the Southwest is the 77627 zip code in Nederland.
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🔎 Key data about Nederland
| Data point | Value | Rank (out of 1048 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 90.7 | No. 6 | N/A |
| Median home value | $196,711[36] | No. 186 | -$168,794.43 |
| Home affordability ratio | 2.606793383 | No. 45 | -2.4 |
| Home value five-year change | 0.1628024837[37] | No. 56 | -31.3% |
| Home value one-year forecast | -3.5%[38] | No. 30 | -4.2% |
| Rental costs | $1,196[39] | No. 55 | -$489 |
| Rent affordability ratio | 1.58% | No. 85 | -0.7% |
| Median household income | 75461[40] | No. 339 | $1,935 |
| Property taxes | $3,228[41] | No. 345 | $425 |
| Energy costs | 0.1341219492 kWh[42] | No. 31 | $0.00 |
The back half of our top 10 kicks off with Nederland's 77627 zip code, which has the 186th-cheapest home values in the Southwest. The median home value is $196,711. Rents average $1,196 per month, making it the 55th-most affordable rental market in the region.
Residents pay 0.1341219492 per kWh of electricity. It's the 31st-cheapest energy market.
7. Victoria, Texas
Victoria's 77901 zip code is the 7th-cheapest place to live in the Southwest.
🔎 Key data about Victoria
| Data point | Value | Rank (out of 1048 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 90.0 | No. 7 | N/A |
| Median home value | $143,713[43] | No. 51 | -$221,792.59 |
| Home affordability ratio | 2.720653534 | No. 59 | -2.3 |
| Home value five-year change | 0.3162532506[44] | No. 193 | -15.9% |
| Home value one-year forecast | -0.9%[45] | No. 136 | -1.6% |
| Rental costs | $993[46] | No. 14 | -$692 |
| Rent affordability ratio | 1.88% | No. 196 | -0.4% |
| Median household income | 52823[47] | No. 613 | -$20,703 |
| Property taxes | $2,272[48] | No. 190 | -$531 |
| Energy costs | 0.1369551459 kWh[49] | No. 141 | $0.00 |
You'll find the 51st-cheapest home values in the Southwest in Victoria's 77901 zip code. The median value: $143,713. Renters in Victoria pay an average of $993 per month.
Homeowners in Victoria pay a median property tax of $2,272 per year, which is the region's 190th-most affordable market.
The average household income is 52823, which ranks 613th-highest in the Southwest.
8. Port Arthur, Texas
The 8th-cheapest place to live in the Southwest is Port Arthur's 77642 zip code.
🔎 Key data about Port Arthur
| Data point | Value | Rank (out of 1048 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 90.0 | No. 8 | N/A |
| Median home value | $108,678[50] | No. 20 | -$256,827.45 |
| Home affordability ratio | 2.582902725 | No. 38 | -2.4 |
| Home value five-year change | 0.03260107477[51] | No. 3 | -44.3% |
| Home value one-year forecast | -4.7%[52] | No. 8 | -5.4% |
| Rental costs | $953[53] | No. 10 | -$732 |
| Rent affordability ratio | 2.26% | No. 550 | 0.0% |
| Median household income | 42076[54] | No. 746 | -$31,450 |
| Property taxes | $1,449[55] | No. 43 | -$1,354 |
| Energy costs | 0.1341219492 kWh[56] | No. 31 | $0.00 |
The 20th-cheapest housing market in the Southwest is Port Arthur's 77642 zip code, with a median home value of $108,678. Renters pay an average of $953 per month, the No. 10 rental market in the region.
The median property tax for households in Port Arthur is $1,449, which makes it the 43rd-cheapest place in the Southwest. The average household income of 42076 ranks 746th.
9. Silsbee, Texas
Silsbee's 77656 zip code sneaks into the top ten of the region's most affordable places to live.
🔎 Key data about Silsbee
| Data point | Value | Rank (out of 1048 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 89.7 | No. 9 | N/A |
| Median home value | $161,964[57] | No. 79 | -$203,541.96 |
| Home affordability ratio | 2.642752206 | No. 50 | -2.3 |
| Home value five-year change | 0.06418084893[58] | No. 14 | -41.2% |
| Home value one-year forecast | -4.3%[59] | No. 16 | -5.0% |
| Rental costs | $1,286[60] | No. 85 | -$398 |
| Rent affordability ratio | 2.10% | No. 486 | -0.2% |
| Median household income | 61286[61] | No. 504 | -$12,240 |
| Property taxes | $1,453[62] | No. 44 | -$1,350 |
| Energy costs | 0.1341219492 kWh[63] | No. 31 | $0.00 |
The 79th-cheapest housing market in the Southwest is Silsbee's 77656 zip code, where the median home value is $161,964. Renters pay an average of $1,286 per month. It's the region's 85th-cheapest rental market.
The median property tax for households within the zip code is $1,453, which makes it the 44th-cheapest property tax rate in the Southwest.
10. Borger, Texas
The final spot on our list of the most affordable places to live in the Southwest goes to the 79007 zip code in Borger.
🔎 Key data about Borger
| Data point | Value | Rank (out of 1048 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 88.9 | No. 10 | N/A |
| Median home value | $93,137[64] | No. 9 | -$272,368.27 |
| Home affordability ratio | 1.591439336 | No. 1 | -3.4 |
| Home value five-year change | 0.1633322292[65] | No. 57 | -31.2% |
| Home value one-year forecast | -2.9%[66] | No. 40 | -3.6% |
| Rental costs | $1,657[67] | No. 328 | -$28 |
| Rent affordability ratio | 2.08% | No. 285 | -0.2% |
| Median household income | 58524[68] | No. 537 | -$15,002 |
| Property taxes | $1,608[69] | No. 64 | -$1,195 |
| Energy costs | 0.1344162015 kWh[70] | No. 112 | $0.00 |
The 9th-most affordable housing market in the Southwest is Borger's 79007 zip code. The median home value is $93,137. Rent in the market costs $1,657 per month on average, making it the 328th-most affordable rental market in the Southwest.
The median property tax for households in Borger is $1,608, which is the 64th-cheapest property tax rate in the region.
Borger ranks No. 112 among Southwest markets by energy costs, with households paying 0.1344162015 per kWh of electricity.
How we ranked the most affordable places in the Southwest
We evaluated 1048 zip codes in the Southwest with a population over 10,000 on nine metrics. We then assigned each market an Affordability Score based on its weighted and combined rankings.
✍️ Editor’s note: Our Affordability Score identifies the most affordable places in a region by zip code.
Often the zip code we identify will represent an entire city or portion of a city.
Occasionally the zip code we identify will encompass an area that includes one or more small towns. In these cases, the data we’ve gathered applies to the entire zip code, not just the single town we’re using to help identify the zip code's location.
If you’re looking to move to one of these affordable places, we recommend doing additional research to make sure the costs in the area — and the quality of life it offers — meet your specific needs.
Methodology: What is an Affordability Score?
Our proprietary Affordability Score is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the affordability of a particular zip code. It takes into account these key data points for each zip code.
- Median home value: The median home value for each zip code comes from the Zillow Home Value Index. The lower the median home value relative to the median value in the Southwest, the higher our score on this component. We assign a weight of 23.8% to median home value.
- Home affordability ratio. The home affordability ratio is the typical median home value divided by the median household income in the zip code, which reveals the number of years of household income needed to afford a home in that zip code. A lower ratio is better because it means more households can afford a home. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 23.8% to the home affordability ratio.
- Home value five-year change: The home value five-year change is the amount that the median home value in the zip code has risen or fallen during the last five years. Our data comes from the Zillow Home Value Index. We assign a weight of 4.8% to the home value five-year change.
- Home value one-year forecast: The home value one-year forecast comes from Zillow Forecast data. It projects how much home values in the zip code are forecasted to change in the next year. We assign a weight of 4.8% to the home value one-year forecast.
- Rental costs. The rental costs are the observed rents in the zip code, sourced from the Zillow Observed Rent Index. The index includes "listed rents that fall into the 40th to 60th percentile range for all homes and apartments in a given region." We assign a weight of 11.9% to rental costs.
- Median household income: The inflation-adjusted median household income figures for the zip code comes from the U.S. Census American Community Survey. We assign a weight of 4.8% to median household income.
- Rent affordability ratio. The rent affordability ratio is the ratio of rental costs divided by median household income, which provides the percentage of household income needed to pay a typical month’s rent in the zip code. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 11.9% to the rent affordability ratio.
- Property taxes: The property tax figures are the median real estate taxes paid in the zip code, sourced from the U.S. Census American Community Survey. The lower the property tax rate relative to the regional average, the higher our score on this component. We assign a weight of 7.1% to property taxes.
- Energy costs: The energy costs are the costs of a kilowatt hour (kWh) of residential electricity in the zip code, sourced from the U.S. Department of Energy. The lower the cost of electricity relative to the regional average, the higher our score on this component. We assign a weight of 7.1% to energy costs.
