Is it cheaper to live in Albuquerque or Minneapolis?

Albuquerque, NM is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 23% below Minneapolis, MN's $1,350, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $48,000 in Minneapolis.

Which has lower taxes, Albuquerque or Minneapolis?

Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Minneapolis under Minnesota's (a top state income tax rate of 9.85% and a 6.875% state sales tax).

Albuquerque vs Minneapolis Cost of Living 2026

Albuquerque

New Mexico

$1,040/mo est.

Minneapolis

Minnesota

$1,350/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 $1,350 in Minneapolis, MN. Overall, Albuquerque, NM is roughly 23% cheaper to live in day-to-day than Minneapolis, MN, driven mainly by rent.

Median household income is $65,604 in Albuquerque, NM and $80,269 in Minneapolis, MN — about 18% higher in Minneapolis, MN. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax; Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.

Albuquerque, NM

Minneapolis, MN

Rent

Studio

$797

$992

+24% in Minneapolis, MN

1 Bedroom

$889

$1,192

+34% in Minneapolis, MN

2 Bedroom

$1,140

$1,555

+36% in Minneapolis, MN

3 Bedroom

$1,459

$1,761

+21% in Minneapolis, MN

Buying a Home

Median Home Value

$266,700

$345,600

+30% in Minneapolis, MN

Income

Median Household Income

$65,604

$80,269

+22% in Minneapolis, MN

Metro Median Wage (annual)

$48,060

$59,320

+23% in Minneapolis, MN

People & Lifestyle

Median Age

38.7 yr

33.0 yr

+5.7 yr in Albuquerque, NM

Homeownership

61.5%

48.0%

+13.5 pp in Albuquerque, NM

Bachelor's+ (25+)

38.7%

54.5%

+15.8 pp in Minneapolis, MN

Avg Commute

22.2 min

22.5 min

+0.3 min in Minneapolis, MN

Crime (per 100k/yr)

Violent Crime

1,193.2

1,167.8

+2% in Albuquerque, NM

Property Crime

4,766.2

5,182.6

+9% in Minneapolis, MN

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

47.4°F

+9.8°F in Albuquerque, NM

Annual Precipitation

9.4 in

32.8 in

+23.4 in in Minneapolis, MN

Gas

Regular Gasoline

$3.99/gal

$4.25/gal

+7% in Minneapolis, MN

Area: Gulf Coast (PADD 3) vs Minnesota.

Public Transit

Base Fare (one-way)

Free

$2.00

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

Utilities

Electricity (¢/kWh)

14.8

15.1

+2% in Minneapolis, MN

Natural Gas ($/MCF)

$11.90

$14.33

+20% in Minneapolis, MN

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

Groceries

Milk (gal)

$4.37

$4.14

+5% in Albuquerque, NM

Bread (lb)

$2.10

$1.79

+15% in Albuquerque, NM

Eggs (doz)

$2.25

$3.63

+61% in Minneapolis, MN

Ground Beef (lb)

$7.23

$6.97

+4% in Albuquerque, NM

Chicken (lb)

$2.14

$2.15

+1% in Minneapolis, MN

Bananas (lb)

$0.74

$0.63

+15% in Albuquerque, NM

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

State Taxes

Sales Tax (NM / MN)

4.875%

6.875%

+2.0 pp in MN

Income Tax (top rate)

5.90%

9.85%

+3.9 pp in MN

Albuquerque vs Minneapolis — FAQ

Is it cheaper to live in Albuquerque or Minneapolis?: Albuquerque, NM is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 23% below Minneapolis, MN's $1,350, mainly because of rent.
How much more do you need to earn to live in Albuquerque than in Minneapolis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $48,000 in Minneapolis.
Which has lower taxes, Albuquerque or Minneapolis?: Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Minneapolis under Minnesota's (a top state income tax rate of 9.85% and a 6.875% 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).