Cost of Living in Hobbs, NM

With a cost of living index of 81, Hobbs, NM is a very affordable place to live. Living here is 19% cheaper than the national average and 5% below the New Mexico state average of 86. With a population of 39,887, Hobbs is a mid-sized community that balances access to services with a more manageable cost of living compared to larger metros.

Housing costs are the biggest factor in Hobbs's cost of living. The median monthly rent is $1,132 (14% below the US median of $1,319), and the median home value sits at $180,700 (41% below the national median of $304,900). At current prices, the median home costs roughly 2.8x the median household income — well within traditional affordability guidelines.

The median household income in Hobbs is $65,691, which is 13% lower than the national median of $75,149. Residents spend roughly 21% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.