Is it cheaper to live in Fayetteville or Las Cruces?

Las Cruces, NM is cheaper. Its monthly baseline of $940 (1BR rent + utilities) runs about 5% below Fayetteville, AR's $990, mainly because of natural gas costs.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Fayetteville versus $32,000 in Las Cruces.

Which has lower taxes, Fayetteville or Las Cruces?

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

Fayetteville vs Las Cruces Cost of Living 2026

Fayetteville

Arkansas

$990/mo est.

Las Cruces

New Mexico

$940/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $990 in Fayetteville, AR versus $940 in Las Cruces, NM. Overall, Las Cruces, NM is roughly 5% cheaper to live in day-to-day than Fayetteville, AR, driven mainly by natural gas costs.

Median household income is $59,074 in Fayetteville, AR and $55,176 in Las Cruces, NM — about 7% higher in Fayetteville, AR. Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.

Fayetteville, AR

Las Cruces, NM

Rent

Studio

$709

$597

+16% in Fayetteville, AR

1 Bedroom

$817

$793

+3% in Fayetteville, AR

2 Bedroom

$999

$888

+11% in Fayetteville, AR

3 Bedroom

$1,430

$1,177

+18% in Fayetteville, AR

Buying a Home

Median Home Value

$322,500

$217,400

+33% in Fayetteville, AR

Income

Median Household Income

$59,074

$55,176

+7% in Fayetteville, AR

Metro Median Wage (annual)

$46,610

$42,070

+10% in Fayetteville, AR

People & Lifestyle

Median Age

28.7 yr

32.7 yr

+4.0 yr in Las Cruces, NM

Homeownership

41.9%

55.6%

+13.7 pp in Las Cruces, NM

Bachelor's+ (25+)

49.8%

37.3%

+12.5 pp in Fayetteville, AR

Avg Commute

18.2 min

18.7 min

+0.5 min in Las Cruces, NM

Crime (per 100k/yr)

Violent Crime

429.4

726

+69% in Las Cruces, NM

Property Crime

2,392.2

4,899.2

+105% in Las Cruces, NM

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

Climate

Avg Annual Temperature

57.1°F

58.8°F

+1.7°F in Las Cruces, NM

Annual Precipitation

48.5 in

—

Gas

Regular Gasoline

$3.62/gal

about equal

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

Utilities

Electricity (¢/kWh)

14.1

15.1

+7% in Las Cruces, NM

Natural Gas ($/MCF)

$27.86

$9.31

+67% in Fayetteville, AR

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

Groceries

Milk (gal)

$4.00

$4.82

+20% in Las Cruces, NM

Bread (lb)

$1.75

$2.04

+17% in Las Cruces, NM

Eggs (doz)

$2.21

$2.19

+1% in Fayetteville, AR

Ground Beef (lb)

$6.45

$7.36

+14% in Las Cruces, NM

Chicken (lb)

$1.90

$2.01

+6% in Las Cruces, NM

Bananas (lb)

$0.62

$0.70

+14% in Las Cruces, NM

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

State Taxes

Sales Tax (AR / NM)

6.5%

4.875%

+1.6 pp in AR

Income Tax (top rate)

3.90%

5.90%

+2.0 pp in NM

Fayetteville vs Las Cruces — FAQ

Is it cheaper to live in Fayetteville or Las Cruces?: Las Cruces, NM is cheaper. Its monthly baseline of $940 (1BR rent + utilities) runs about 5% below Fayetteville, AR's $990, mainly because of natural gas costs.
How much more do you need to earn to live in Fayetteville than in Las Cruces?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Fayetteville versus $32,000 in Las Cruces.
Which has lower taxes, Fayetteville or Las Cruces?: Fayetteville is taxed under Arkansas's rules (a top state income tax rate of 3.90% and a 6.5% state sales tax); Las Cruces under New Mexico's (a top state income tax rate of 5.90% and a 4.875% 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).