Median one-bedroom rent across the cities we track is $889 in New Mexico versus $1,142 in Tennessee. Overall, New Mexico runs roughly 22% cheaper on rent than Tennessee, its main day-to-day cost driver.
Median household income across tracked cities is $65,604 in New Mexico and $63,204 in Tennessee — about 4% higher in New Mexico. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax; Tennessee has no state income tax and a 7% state sales tax.
State Taxes
Sales Tax
4.875%
7%
+2.1 pp in Tennessee
Income Tax (top rate)
5.90%
None
+5.9 pp in New Mexico
Housing (median across tracked cities)
Median 1BR Rent
$889
$1,142
+28% in Tennessee
Median Home Value
$266,700
$270,100
+1% in Tennessee
Income (median across tracked cities)
Median Household Income
$65,604
$63,204
+4% in New Mexico
Climate (median across tracked cities)
Avg Annual Temperature
57.2°F
61.3°F
+4.0°F in Tennessee
New Mexico vs Tennessee — FAQ
- Is it cheaper to live in New Mexico or Tennessee?
- New Mexico is cheaper on rent — its median one-bedroom of $889 runs about 22% below Tennessee's $1,142, based on the cities we track in each state.
- How much more do you need to earn to live in New Mexico than in Tennessee?
- 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 New Mexico versus $46,000 in Tennessee.
- Which has lower taxes, New Mexico or Tennessee?
- New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax. Tennessee has no state income tax and a 7% state sales tax.
Housing, income, and climate are medians across the 1/2 cities we track in New Mexico/Tennessee — 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.