Is it cheaper to live in Albuquerque or Fayetteville?

Fayetteville, AR is cheaper. Its monthly baseline of $990 (1BR rent + utilities) runs about 5% below Albuquerque, NM's $1,040, mainly because of rent.

How much more do you need to earn to live in Albuquerque than in Fayetteville?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $33,000 in Fayetteville.

Which has lower taxes, Albuquerque or Fayetteville?

Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Fayetteville under Arkansas's (a top state income tax rate of 3.90% and a 6.5% state sales tax).

Albuquerque vs Fayetteville Cost of Living 2026

Albuquerque

New Mexico

$1,040/mo est.

Fayetteville

Arkansas

$990/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,040 in Albuquerque, NM versus $990 in Fayetteville, AR. Overall, Fayetteville, AR is roughly 5% cheaper to live in day-to-day than Albuquerque, NM, driven mainly by rent.

Median household income is $65,604 in Albuquerque, NM and $59,074 in Fayetteville, AR — about 10% higher in Albuquerque, NM. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax; Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax.

Albuquerque, NM

Fayetteville, AR

Rent

Studio

$797

$709

+11% in Albuquerque, NM

1 Bedroom

$889

$817

+8% in Albuquerque, NM

2 Bedroom

$1,140

$999

+12% in Albuquerque, NM

3 Bedroom

$1,459

$1,430

+2% in Albuquerque, NM

Buying a Home

Median Home Value

$266,700

$322,500

+21% in Fayetteville, AR

Income

Median Household Income

$65,604

$59,074

+10% in Albuquerque, NM

Metro Median Wage (annual)

$48,060

$46,610

+3% in Albuquerque, NM

People & Lifestyle

Median Age

38.7 yr

28.7 yr

+10.0 yr in Albuquerque, NM

Homeownership

61.5%

41.9%

+19.6 pp in Albuquerque, NM

Bachelor's+ (25+)

38.7%

49.8%

+11.1 pp in Fayetteville, AR

Avg Commute

22.2 min

18.2 min

+4.0 min in Albuquerque, NM

Crime (per 100k/yr)

Violent Crime

1,194.3

429.4

+64% in Albuquerque, NM

Property Crime

4,766.6

2,392.2

+50% in Albuquerque, NM

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

57.2°F

57.1°F

+0.1°F in Albuquerque, NM

Annual Precipitation

9.4 in

48.5 in

+39.1 in in Fayetteville, AR

Gas

Regular Gasoline

$3.62/gal

about equal

Area: Gulf Coast (PADD 3) vs Gulf Coast (PADD 3).

Public Transit

Base Fare (one-way)

Free

—

Adult base one-way fare — ABQ RIDE vs — (2026).

Utilities

Electricity (¢/kWh)

15.1

14.1

+6% in Albuquerque, NM

Natural Gas ($/MCF)

$9.31

$27.86

+199% in Fayetteville, AR

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.82

$4.00

+17% in Albuquerque, NM

Bread (lb)

$2.04

$1.75

+14% in Albuquerque, NM

Eggs (doz)

$2.19

$2.21

+1% in Fayetteville, AR

Ground Beef (lb)

$7.36

$6.45

+12% in Albuquerque, NM

Chicken (lb)

$2.01

$1.90

+6% in Albuquerque, NM

Bananas (lb)

$0.70

$0.62

+12% in Albuquerque, NM

Average prices — West vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (NM / AR)

4.875%

6.5%

+1.6 pp in AR

Income Tax (top rate)

5.90%

3.90%

+2.0 pp in NM

Albuquerque vs Fayetteville — FAQ

Is it cheaper to live in Albuquerque or Fayetteville?: Fayetteville, AR is cheaper. Its monthly baseline of $990 (1BR rent + utilities) runs about 5% below Albuquerque, NM's $1,040, mainly because of rent.
How much more do you need to earn to live in Albuquerque than in Fayetteville?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $33,000 in Fayetteville.
Which has lower taxes, Albuquerque or Fayetteville?: Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Fayetteville under Arkansas's (a top state income tax rate of 3.90% and a 6.5% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).