Median one-bedroom rent across the cities we track is $904 in Arkansas versus $889 in New Mexico. Overall, New Mexico runs roughly 2% cheaper on rent than Arkansas, its main day-to-day cost driver.
Median household income across tracked cities is $60,583 in Arkansas and $65,604 in New Mexico — about 8% higher in New Mexico. Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
State Taxes
Housing (median across tracked cities)
Income (median across tracked cities)
Climate (median across tracked cities)
Arkansas vs New Mexico — FAQ
- Is it cheaper to live in Arkansas or New Mexico?
- New Mexico is cheaper on rent — its median one-bedroom of $889 runs about 2% below Arkansas's $904, based on the cities we track in each state.
- How much more do you need to earn to live in Arkansas than in New Mexico?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $36,000 a year in Arkansas versus $36,000 in New Mexico.
- Which has lower taxes, Arkansas or New Mexico?
- Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Arkansas/New Mexico — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.