The 10 Most Affordable Places to Live in New Mexico

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By Michael Yessis Updated June 13, 2024
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Edited by Ashley Simon

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The 88130 zip code in Portales tops our ranking of the most affordable places to live in New Mexico.

We looked at 57 zip codes in the state, 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 New Mexico

RankCity Affordability Score Median home valueRental costs
1Portales 🥇100$141,834$796
2Clovis🥈93.2$162,432$1,103
3Lovington 🥉86.3$153,949$1,558
4Carlsbad84.6$215,208$1,558
5Roswell84.5$128,740$1,558
6Artesia83.8$212,055$1,558
7Hobbs83.5$169,813$1,558
8Grants80.8$140,596$1,558
9Deming79.1$141,080$1,558
10Gallup73.4$207,608$1,558
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1. Portales

Here's why the 88130 zip code in Portales is New Mexico's most affordable place to live.

🔎 Key data about Portales

Data pointValueRank (out of 57 markets)Difference from median or average
Affordability Score 100 No. 1N/A
Median home value $141,834[1]No. 4 -$174,428.39
Home affordability ratio 2.7No. 3-2.4
Home value five-year change 12.0%[2]No. 1-40.7%
Home value one-year forecast -3.2%[3]No. 3-2.8%
Rental costs $796[4]No. 1-$761
Rent affordability ratio 1.51%No. 1-1.0%
Median household income $52,795[5]No. 39-$9,848
Property taxes $655[6]No. 3-$1,142
Energy costs $0.13 kWh[7]No. 9-$0.01
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Portales's 88130 zip code is the cheapest place to live in New Mexico, leading the 57 markets we evaluated. 

The median home value is $141,834, making it the 4th-cheapest housing market in the state. Forecasts project a -3.2% change in home values in the next year. Rent in the zip code averages $796 per month, which is the 1st cheapest amount in New Mexico.

The median property tax for homeowners in Portales is $655 per household, the No. 3 ranked market in New Mexico. 

Residents pay $0.13 per kWh of electricity, which ranks No. 9 among New Mexico markets.

2. Clovis

The 88101 zip code is the 2nd-cheapest place to live in New Mexico.

🔎 Key data about Clovis

Data pointValueRank (out of 57 markets)Difference from median or average
Affordability Score 93.2No. 2N/A
Median home value $162,432[8]No. 6-$153,830.50
Home affordability ratio 3.0No. 7-2.1
Home value five-year change 15.5%[9]No. 3-37.2%
Home value one-year forecast -3.0%[10]No. 5-2.6%
Rental costs $1,103[11]No. 7-$454
Rent affordability ratio 2.01%No. 4-0.5%
Median household income $54,824[12]No. 34-$7,819
Property taxes $903[13]No. 9-$894
Energy costs $0.13 kWh[14]No. 9-$0.01
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Clovis's 88101 zip code has a median home value of $162,432, which is the 5th-cheapest housing market in New Mexico. You can rent for an average of $1,103 per month. That's the 7th-cheapest price in the state.

The average household income in the zip code is $54,824, which ranks 34th-highest in the state. 

Homeowners in Clovis pay a median property tax of $903 per year, making it the 9th-most affordable market in New Mexico.

Clovis ranks No. 9 among New Mexico energy markets. You'll pay $0.13 per kWh of electricity.

3. Lovington

The 3rd-cheapest place to live in New Mexico is Lovington's 88260 zip code.

🔎 Key data about Lovington

Data pointValueRank (out of 57 markets)Difference from median or average
Affordability Score 86.3No. 3N/A
Median home value $153,949[15]No. 5-$162,313.13
Home affordability ratio 2.1No. 1-2.9
Home value five-year change 52.7%[16]No. 240.0%
Home value one-year forecast -9.4%[17]No. 1-9.0%
Rental costs $1,558[18]No. 22$0
Rent affordability ratio 2.49%No. 190.0%
Median household income $72,510[19]No. 18$9,867
Property taxes $815[20]No. 6-$982
Energy costs $0.13 kWh[21]No. 9-$0.01
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The No. 5 cheapest housing in New Mexico is Lovington's 88260 zip code, with a median home value of $153,949. Rents in the market average $1,558 per month, making it the 22nd-most affordable rental market in the state.

The median property tax for households in Lovington is $815, which makes it the 6th-cheapest place in New Mexico. Lovington ranks No. 9 among New Mexico markets by energy costs. Residents pay $0.13 per kWh of electricity.

4. Carlsbad

The 88220 zip code in Carlsbad comes in at No. 4 on our list of the cheapest places to live in New Mexico.

🔎 Key data about Carlsbad

Data pointValueRank (out of 57 markets)Difference from median or average
Affordability Score 84.6No. 4N/A
Median home value $215,208[22]No. 15-$101,054.26
Home affordability ratio 2.7No. 5-2.4
Home value five-year change 13.3%[23]No. 2-39.5%
Home value one-year forecast -2.6%[24]No. 6-2.2%
Rental costs $1,558[25]No. 22$0
Rent affordability ratio 2.49%No. 190.0%
Median household income $79,809[26]No. 9$17,166
Property taxes $954[27]No. 10-$843
Energy costs $0.13 kWh[28]No. 9-$0.01
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The No. 15 cheapest housing market in New Mexico is Carlsbad's 88220 zip code, where the median home value is $215,208. Renters here pay an average of $1,558 per month. 

When it comes to energy costs, Carlsbad ranks 9th among New Mexico markets. Residents pay $0.13 per kWh of electricity.

The median property tax for households in the zip code is $954, which makes it the 10th-cheapest market in New Mexico.

5. Roswell

The 88203 zip code in Roswell ranks No. 5 among New Mexico's most affordable places to live.

🔎 Key data about Roswell

Data pointValueRank (out of 57 markets)Difference from median or average
Affordability Score 84.5No. 5N/A
Median home value $128,740[29]No. 1-$187,522.11
Home affordability ratio 3.0No. 8-2.0
Home value five-year change 29.6%[30]No. 10-23.1%
Home value one-year forecast -3.1%[31]No. 4-2.7%
Rental costs $1,558[32]No. 22$0
Rent affordability ratio 2.49%No. 190.0%
Median household income $42,500[33]No. 51-$20,143
Property taxes $687[34]No. 4-$1,110
Energy costs $0.13 kWh[35]No. 9-$0.01
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Roswell's 88203 zip code has a median home value of $128,740, the 1st-cheapest market in the state. Forecasts project a -3.1% change in home values in the next year. 

The median property tax per household in Roswell is $687. It's the 4th-cheapest market by tax rate in New Mexico.

6. Artesia

The No. 6 most affordable place to live in New Mexico is the 88210 zip code.

🔎 Key data about Artesia

Data pointValueRank (out of 57 markets)Difference from median or average
Affordability Score 83.8No. 6N/A
Median home value $212,055[36]No. 14-$104,206.68
Home affordability ratio 2.8No. 6-2.2
Home value five-year change 19.1%[37]No. 5-33.6%
Home value one-year forecast -2.5%[38]No. 7-2.1%
Rental costs $1,558[39]No. 22$0
Rent affordability ratio 2.49%No. 190.0%
Median household income $74,932[40]No. 14$12,289
Property taxes $864[41]No. 7-$933
Energy costs $0.13 kWh[42]No. 9-$0.01
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The back half of our top 10 kicks off with Artesia's 88210 zip code, which has the 14th-cheapest home values in New Mexico. The median home value is $212,055. Rents average $1,558 per month, making it the 22nd-most affordable rental market in the state.

Residents pay $0.13 per kWh of electricity. It's the 9th-cheapest energy market.

7. Hobbs

Hobbs's 88240 zip code is the 7th-cheapest place to live in New Mexico.

🔎 Key data about Hobbs

Data pointValueRank (out of 57 markets)Difference from median or average
Affordability Score 83.5No. 7N/A
Median home value $169,813[43]No. 7-$146,448.79
Home affordability ratio 2.7No. 4-2.4
Home value five-year change 52.7%[44]No. 240.0%
Home value one-year forecast -8.1%[45]No. 2-7.7%
Rental costs $1,558[46]No. 22$0
Rent affordability ratio 2.49%No. 190.0%
Median household income $63,083[47]No. 24$440
Property taxes $735[48]No. 5-$1,062
Energy costs $0.13 kWh[49]No. 9-$0.01
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You'll find the 7th-cheapest home values in New Mexico in Hobbs's 88240 zip code. The median value: $169,813. Renters in Hobbs pay an average of $1,558 per month.

Homeowners in Hobbs pay a median property tax of $735 per year, which is New Mexico's 5th-most affordable market.

The average household income is $63,083, which ranks 24th-highest in the state.

8. Grants

The 8th-cheapest place to live in New Mexico is Grants's 87020 zip code.

🔎 Key data about Grants

Data pointValueRank (out of 57 markets)Difference from median or average
Affordability Score 80.8No. 8N/A
Median home value $140,596[50]No. 2-$175,665.78
Home affordability ratio 2.5No. 2-2.6
Home value five-year change 44.1%[51]No. 15-8.6%
Home value one-year forecast -0.7%[52]No. 19-0.3%
Rental costs $1,558[53]No. 22$0
Rent affordability ratio 2.49%No. 190.0%
Median household income $57,051[54]No. 32-$5,592
Property taxes $1,175[55]No. 20-$622
Energy costs $0.14 kWh[56]No. 19$0.00
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The 2nd-cheapest housing market in New Mexico is Grants's 87020 zip code, with a median home value of $140,596. Renters pay an average of $1,558 per month, the No. 22 rental market in the state.

The median property tax for households in Grants is $1,175, which makes it the 20th-cheapest place in New Mexico. The average household income of $57,051 ranks 32nd.

9. Deming

Deming's 88030 zip code sneaks into the top ten of New Mexico's most affordable places to live.

🔎 Key data about Deming

Data pointValueRank (out of 57 markets)Difference from median or average
Affordability Score 79.1No. 9N/A
Median home value $141,080[57]No. 3-$175,181.60
Home affordability ratio 3.5No. 10-1.5
Home value five-year change 28.8%[58]No. 9-23.9%
Home value one-year forecast -2.2%[59]No. 9-1.8%
Rental costs $1,558[60]No. 22$0
Rent affordability ratio 2.49%No. 190.0%
Median household income $40,075[61]No. 52-$22,568
Property taxes $610[62]No. 2-$1,187
Energy costs $0.13 kWh[63]No. 17$0.00
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The 3rd-cheapest housing market in New Mexico is Deming's 88030 zip code, where the median home value is $141,080. Renters pay an average of $1,558 per month. It's the state's 22nd-cheapest rental market.

The median property tax for households within the zip code is $610, which makes it the 2nd-cheapest property tax rate in New Mexico. 

10. Gallup

The final spot on our list of the most affordable places to live in New Mexico goes to the 87301 zip code in Gallup.

🔎 Key data about Gallup

Data pointValueRank (out of 57 markets)Difference from median or average
Affordability Score 73.4No. 10N/A
Median home value $207,608[64]No. 13-$108,653.83
Home affordability ratio 3.5No. 11-1.5
Home value five-year change 28.7%[65]No. 8-24.0%
Home value one-year forecast -1.6%[66]No. 17-1.2%
Rental costs $1,558[67]No. 22$0
Rent affordability ratio 2.49%No. 190.0%
Median household income $58,854[68]No. 29-$3,789
Property taxes $1,540[69]No. 32-$257
Energy costs $0.14 kWh[70]No. 19$0.00
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The 13th-most affordable market in New Mexico is Gallup's 87301 zip code. The median home value is $207,608. Rent in the market costs $1,558 per month on average, making it the 22nd-most affordable rental market in New Mexico.

The median property tax for households in Gallup is $1,540, which is the 32nd-cheapest property tax rate in the state.

Gallup ranks No. 19 among New Mexico markets by energy costs, with households paying $0.14 per kWh of electricity.

How we ranked the most affordable places in New Mexico

We evaluated 57 zip codes in New Mexico 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 state 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 New Mexico, 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 New Mexico 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 New Mexico average, the higher our score on this component. We assign a weight of 7.1% to energy costs.  

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