Income needed to buy a house in New Mexico
A median-priced home in New Mexico costs $279,900. With 20% down you'd need about $74,367 a year, $6,551 more than the state's median household income of $67,816. New Mexico ranks #14 of 51 for the lowest income needed.
Income needed: $74,367 a year
Defaults: state median home value and property tax (Census ACS 2024), median homeowners insurance paid by owners with a mortgage (Census ACS 2024; quotes vary by home and ZIP code), 30-year rate 6.95% (Freddie Mac, week of 2026-09-17).
You'd need a household income of about $74,367 a year to buy a $279,900 home in New Mexico with $55,980 down.
Based on lenders' 28/36 rule: housing costs under 28% of gross income, all debt under 36%.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $1,482 |
| Property tax | $148 |
| Homeowners insurance | $105 |
| Total | $1,735 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $13,995 | $2,124 | $91,026 |
| 10% | $27,990 | $2,025 | $86,806 |
| 20% | $55,980 | $1,735 | $74,367 |
Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in New Mexico: what's different
- Transfer tax
- None
- On the median home
- $0
- Homestead break
- $2,000 head-of-family
- First-time buyer help
- Housing New Mexico (Mortgage Finance Authority)
- Transfer and recording taxes. New Mexico has no transfer tax. Within 30 days of recording the deed, the buyer or seller files a residential property transfer declaration with the county assessor.
- Property tax breaks for your home. A head-of-family exemption takes $2,000 off taxable value, which is a third of assessed value. Residential values can rise only 3% a year, but the limit doesn't apply in the year after a sale, so a buyer is taxed on the home's current value.
- First-time buyer help. Housing New Mexico (Mortgage Finance Authority) offers FirstHome through participating lenders (a first mortgage that can be paired with FirstDown down payment help). Check its site for income and price limits.
Checked against official sources on September 25, 2026. Local transfer taxes and exemptions vary, so confirm with the county before you close.
Home prices in New Mexico's largest metro area
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Albuquerque, NM | $86,738 | $322,700 | $76,097 |
The median home in the Albuquerque area is worth $322,700, 15% more than the statewide median, and takes about $86,738 a year to buy with 20% down.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. Income needed: 20% down at 6.95%, the metro's median property tax and its main state's median homeowners insurance for homes with a mortgage (Census ACS 2024), under the 28% rule.
What makes owning in New Mexico less expensive than most states
- Home prices: the median value of $279,900 is 22% below the U.S. median of $360,600.
- Property tax: about 0.63% of value a year ($148 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,260 a year for homeowners insurance in 2024 (Census ACS). Premiums have risen in most states since then, and they vary a lot by home and ZIP code, so get quotes.
- Mortgage rate: each 1-point rise in rates adds roughly $153 a month on this loan.
3 states need at least 20% less income to buy their median home. States with a similar income requirement:
- North Dakota $74,999
- Michigan $72,520
- Kansas $71,999
- South Carolina $77,726
- Missouri $70,941
- Pennsylvania $78,509
Frequently asked questions
How much do you need to make to buy a house in New Mexico?
About $74,367 a year for the median home of $279,900 with 20% down at 6.95%. With 10% down it's about $86,806.
What is the property tax rate in New Mexico?
The median New Mexico homeowner pays $1,776 a year, about 0.63% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in New Mexico?
Median rent is $1,117 a month, while owning the median home costs about $1,735 a month with 20% down, before maintenance. Renting affordably takes about $44,680 a year under the 30% rule.