Median one-bedroom rent across the cities we track is $870 in Iowa versus $889 in New Mexico. Overall, Iowa runs roughly 2% cheaper on rent than New Mexico, its main day-to-day cost driver.
Median household income across tracked cities is $63,966 in Iowa and $65,604 in New Mexico — about 2% higher in New Mexico. Iowa has a top state income tax rate of 3.80% and a 6% state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
State Taxes
Sales Tax
6%
4.875%
+1.1 pp in Iowa
Income Tax (top rate)
3.80%
5.90%
+2.1 pp in New Mexico
Housing (median across tracked cities)
Median 1BR Rent
$870
$889
+2% in New Mexico
Median Home Value
$183,700
$266,700
+45% in New Mexico
Income (median across tracked cities)
Median Household Income
$63,966
$65,604
+3% in New Mexico
Climate (median across tracked cities)
Avg Annual Temperature
50.9°F
57.2°F
+6.3°F in New Mexico
Iowa vs New Mexico — FAQ
- Is it cheaper to live in Iowa or New Mexico?
- Iowa is cheaper on rent — its median one-bedroom of $870 runs about 2% below New Mexico's $889, based on the cities we track in each state.
- How much more do you need to earn to live in Iowa 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 $35,000 a year in Iowa versus $36,000 in New Mexico.
- Which has lower taxes, Iowa or New Mexico?
- Iowa has a top state income tax rate of 3.80% and a 6% 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 Iowa/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.