Is it cheaper to live in Albuquerque or Omaha?

Albuquerque, NM is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 7% below Omaha, NE's $1,120, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $39,000 in Omaha.

Which has lower taxes, Albuquerque or Omaha?

Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Omaha under Nebraska's (a top state income tax rate of 4.55% and a 5.5% state sales tax).

Albuquerque vs Omaha Cost of Living 2026

Albuquerque

New Mexico

$1,040/mo est.

Omaha

Nebraska

$1,120/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 $1,120 in Omaha, NE. Overall, Albuquerque, NM is roughly 7% cheaper to live in day-to-day than Omaha, NE, driven mainly by rent.

Median household income is $65,604 in Albuquerque, NM and $72,708 in Omaha, NE — about 10% higher in Omaha, NE. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax; Nebraska has a top state income tax rate of 4.55% and a 5.5% state sales tax.

Albuquerque, NM

Omaha, NE

Rent

Studio

$797

$908

+14% in Omaha, NE

1 Bedroom

$889

$984

+11% in Omaha, NE

2 Bedroom

$1,140

$1,193

+5% in Omaha, NE

3 Bedroom

$1,459

$1,437

+2% in Albuquerque, NM

Buying a Home

Median Home Value

$266,700

$230,100

+14% in Albuquerque, NM

Income

Median Household Income

$65,604

$72,708

+11% in Omaha, NE

Metro Median Wage (annual)

$48,060

$49,660

+3% in Omaha, NE

People & Lifestyle

Median Age

38.7 yr

35.3 yr

+3.4 yr in Albuquerque, NM

Homeownership

61.5%

57.7%

+3.8 pp in Albuquerque, NM

Bachelor's+ (25+)

38.7%

40.3%

+1.6 pp in Omaha, NE

Avg Commute

22.2 min

19.6 min

+2.6 min in Albuquerque, NM

Crime (per 100k/yr)

Violent Crime

1,193.2

358.6

+70% in Albuquerque, NM

Property Crime

4,766.2

3,153

+34% 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

51.1°F

+6.1°F in Albuquerque, NM

Annual Precipitation

9.4 in

30.6 in

+21.2 in in Omaha, NE

Gas

Regular Gasoline

$3.99/gal

$4.35/gal

+9% in Omaha, NE

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

Public Transit

Base Fare (one-way)

Free

$1.25

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

Utilities

Electricity (¢/kWh)

14.8

13.1

+12% in Albuquerque, NM

Natural Gas ($/MCF)

$11.90

$12.06

+1% in Omaha, NE

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 Omaha, NE

Ground Beef (lb)

$7.23

$6.97

+4% in Albuquerque, NM

Chicken (lb)

$2.14

$2.15

+1% in Omaha, NE

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 / NE)

4.875%

5.5%

+0.6 pp in NE

Income Tax (top rate)

5.90%

4.55%

+1.4 pp in NM

Albuquerque vs Omaha — FAQ

Is it cheaper to live in Albuquerque or Omaha?: Albuquerque, NM is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 7% below Omaha, NE's $1,120, mainly because of rent.
How much more do you need to earn to live in Albuquerque than in Omaha?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Albuquerque versus $39,000 in Omaha.
Which has lower taxes, Albuquerque or Omaha?: Albuquerque is taxed under New Mexico's rules (a top state income tax rate of 5.90% and a 4.875% state sales tax); Omaha under Nebraska's (a top state income tax rate of 4.55% and a 5.5% 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).