Median one-bedroom rent across the cities we track is $964 in Michigan versus $889 in New Mexico. Overall, New Mexico runs roughly 8% cheaper on rent than Michigan, its main day-to-day cost driver.
Median household income across tracked cities is $65,526 in Michigan and $65,604 in New Mexico. Michigan has a top state income tax rate of 4.25% 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 Michigan
Income Tax (top rate)
4.25%
5.90%
+1.7 pp in New Mexico
Housing (median across tracked cities)
Median 1BR Rent
$964
$889
+8% in Michigan
Median Home Value
$225,500
$266,700
+18% in New Mexico
Income (median across tracked cities)
Median Household Income
$65,526
$65,604
+0% in New Mexico
Climate (median across tracked cities)
Avg Annual Temperature
49.1°F
57.2°F
+8.1°F in New Mexico
Michigan vs New Mexico — FAQ
- Is it cheaper to live in Michigan or New Mexico?
- New Mexico is cheaper on rent — its median one-bedroom of $889 runs about 8% below Michigan's $964, based on the cities we track in each state.
- How much more do you need to earn to live in Michigan 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 $39,000 a year in Michigan versus $36,000 in New Mexico.
- Which has lower taxes, Michigan or New Mexico?
- Michigan has a top state income tax rate of 4.25% 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 3/3 cities we track in Michigan/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.