Is it cheaper to live in Albuquerque or Memphis?

Albuquerque, NM is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 6% below Memphis, TN's $1,110, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $38,000 in Memphis.

Which has lower taxes, Albuquerque or Memphis?

Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Memphis under Tennessee's (no state income tax and a 7% state sales tax).

Albuquerque vs Memphis Cost of Living 2026

Albuquerque

New Mexico

$1,040/mo est.

Memphis

Tennessee

$1,110/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 $1,110 in Memphis, TN. Overall, Albuquerque, NM is roughly 6% cheaper to live in day-to-day than Memphis, TN, driven mainly by rent.

Median household income is $65,604 in Albuquerque, NM and $51,211 in Memphis, TN — about 22% higher in Albuquerque, NM. 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.

Albuquerque, NM

Memphis, TN

Rent

Studio

$797

$877

+10% in Memphis, TN

1 Bedroom

$889

$948

+7% in Memphis, TN

2 Bedroom

$1,140

$1,073

+6% in Albuquerque, NM

3 Bedroom

$1,459

$1,281

+12% in Albuquerque, NM

Buying a Home

Median Home Value

$266,700

$157,100

+41% in Albuquerque, NM

Income

Median Household Income

$65,604

$51,211

+22% in Albuquerque, NM

Metro Median Wage (annual)

$48,060

$46,890

+2% in Albuquerque, NM

People & Lifestyle

Median Age

38.7 yr

34.3 yr

+4.4 yr in Albuquerque, NM

Homeownership

61.5%

46.0%

+15.5 pp in Albuquerque, NM

Bachelor's+ (25+)

38.7%

28.2%

+10.5 pp in Albuquerque, NM

Avg Commute

22.2 min

21.3 min

+0.9 min in Albuquerque, NM

Crime (per 100k/yr)

Violent Crime

1,193.2

2,507.5

+110% in Memphis, TN

Property Crime

4,766.2

6,965.8

+46% in Memphis, TN

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

63.1°F

+5.9°F in Memphis, TN

Annual Precipitation

9.4 in

53.7 in

+44.2 in in Memphis, TN

Gas

Regular Gasoline

$3.99/gal

$4.35/gal

+9% in Memphis, TN

Area: Gulf Coast (PADD 3) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

Free

$1.75

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

Utilities

Electricity (¢/kWh)

14.8

15.1

+2% in Memphis, TN

Natural Gas ($/MCF)

$11.90

$15.54

+31% in Memphis, TN

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

Groceries

Milk (gal)

$4.37

$4.16

+5% in Albuquerque, NM

Bread (lb)

$2.10

$1.73

+18% in Albuquerque, NM

Eggs (doz)

$2.25

$2.19

+3% in Albuquerque, NM

Ground Beef (lb)

$7.23

$6.56

+9% in Albuquerque, NM

Chicken (lb)

$2.14

$1.90

+11% in Albuquerque, NM

Bananas (lb)

$0.74

$0.61

+17% in Albuquerque, NM

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

State Taxes

Sales Tax (NM / TN)

4.875%

+2.1 pp in TN

Income Tax (top rate)

5.90%

None

+5.9 pp in NM

Albuquerque vs Memphis — FAQ

Is it cheaper to live in Albuquerque or Memphis?: Albuquerque, NM is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 6% below Memphis, TN's $1,110, mainly because of rent.
How much more do you need to earn to live in Albuquerque than in Memphis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $38,000 in Memphis.
Which has lower taxes, Albuquerque or Memphis?: Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Memphis under Tennessee's (no state income tax and a 7% 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).