Oaxaca on a Budget: The Vayango Guide

Vayango Travel Experts · 2026 · 6 min read

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Oaxaca is Mexico's best value city. The only thing cheaper is the bus from Mexico City.

Oaxaca City is the cultural capital of Mexico, the birthplace of mole, mezcal, and the Zapotec civilisation — and it's cheaper than almost any European city. A plate of tlayudas costs MXN 40 (£1.80). A shot of mezcal costs MXN 40 (£1.80). A bed in a hostel costs MXN 200 (£9). The Zócalo is free. The markets are free to wander. The only thing that isn't cheap is the art — and even that's negotiable. This guide covers the real Oaxaca: the 20-peso street food, the mezcalerías where locals drink, the neighbourhoods where artists live, and how to visit Monte Albán for less than the price of a London pint.

The real daily budget breakdown

Here's what a MXN 800 (£36) day looks like:

• Breakfast: memelas (thick corn tortillas with beans and cheese) or chilaquiles at a market stall — MXN 30–50 (£1.35–2.25)
• Morning: Zócalo (free), Santo Domingo Church (free to enter, museum MXN 75), or a textile museum (MXN 50) — MXN 0–75
• Lunch: tlayudas (giant crispy tortilla with beans, cheese, meat, and cabbage) or mole negro at a market comedor — MXN 60–100 (£2.70–4.50)
• Afternoon: mezcal tasting at a local mezcalería — MXN 100–150 (£4.50–6.75) for 3–5 tastings
• Transport: colectivo (shared van) or local bus — MXN 10–20 (45p–90p) per ride
• Dinner: mole at a neighbourhood restaurant or street tacos — MXN 80–120 (£3.60–5.40)
• Drinks: mezcal or local beer — MXN 40–60 (£1.80–2.70)
• Total: MXN 420–650 (£19–29) excluding accommodation. Add a MXN 200 (£9) hostel bed or MXN 400 (£18) hotel room and you're at £28–47/day.

Sleep: where MXN 200–500 gets you a bed

Oaxaca's accommodation is cheap, colourful, and often family-run:

• Centro Histórico — the UNESCO-listed historic centre. Cobblestones, colonial buildings, and walking distance to everything. Hostels MXN 200–300, hotels MXN 500–800. The tourist default.
• Jalatlaco — the artists' neighbourhood, 10 minutes' walk from the centre. Murals, galleries, and a bohemian vibe. Rooms MXN 250–400. The best area for creative travelers.
• Xochimilco — the old aqueduct neighbourhood, 15 minutes north of the centre. Quiet, local, and full of mezcalerías. Rooms MXN 200–350.
• Hostels — Hostal de las Américas (MXN 200–280, social, rooftop terrace), Casa Angel Youth Hostel (MXN 180–250, central, excellent staff), and Hostal Central (MXN 150–220, basic but clean).
• Hotels — Hotel Las Mariposas (MXN 400–600, charming, central), Casa de las Bugambilias (MXN 500–800, boutique, excellent restaurant).
• Airbnb — rooms from MXN 250, flats from MXN 500. The quality varies. Check recent reviews.
• Avoid: nothing, really. Oaxaca is safe everywhere. The only risk is booking a place too far from the centre and having to take a taxi every day.

Eat: mole, tlayudas, and the market

Oaxacan food is one of the world's great cuisines, and it's absurdly cheap:

• Mole negro — the signature. A complex sauce of chillies, chocolate, nuts, and spices, served over chicken or turkey. MXN 80–120 at local restaurants. The city's defining dish.
• Tlayudas — a giant, crispy corn tortilla topped with beans, lard, cheese, meat, and cabbage, folded and grilled. MXN 40–60 at market stalls and street corners. The Oaxacan pizza.
• Memelas — thick corn tortillas with beans, cheese, and salsa. MXN 15–25. The standard breakfast.
• Chapulines — toasted grasshoppers with lime and chilli. MXN 20–30 for a bag. Crunchy, salty, and surprisingly good.
• Tacos — al pastor, carnitas, barbacoa. MXN 10–15 each. Three is a meal.
• Markets: Mercado 20 de Noviembre (food hall, grilled meat, tlayudas, chocolate), Mercado Benito Juárez (produce, mezcal, cheese), and Mercado de Artesanías (crafts, textiles). All free to wander.
• Chocolate: Oaxaca is the birthplace of Mexican chocolate. Buy it at Mayordomo or La Soledad. MXN 50–80 for a block. Drink it as hot chocolate with water (not milk — the Oaxacan way).
• Mezcal: the smoky, complex cousin of tequila. Drink it at local mezcalerías (In Situ, Los Amantes, or any neighbourhood spot). MXN 40–80 per glass.
• Higher-end: Casa Oaxaca (modern Oaxacan, MXN 300–400), Los Danzantes (contemporary Mexican, MXN 250–350), and Pitiona (fine dining, MXN 400–600). Worth one splurge.

Move: your feet, colectivos, and the occasional taxi

Oaxaca City is compact and walkable. Most visitors never need transport:

• Walking: the entire historic centre is pedestrian-friendly. From the Zócalo to the markets is 10 minutes. To Jalatlaco is 15 minutes. The only hills are around Santo Domingo.
• Colectivos — shared vans that run fixed routes. The main transport for locals. To nearby villages (Teotitlán, Tlacolula, Mitla) costs MXN 20–40. Ask at your hostel for the pickup point.
• Buses — second-class buses to nearby towns (Mitla, Yagul, Tule) cost MXN 15–30. The bus station is on the edge of town.
• Taxis — flag fall MXN 25, then MXN 15/km. A ride across town costs MXN 40–60. Negotiate the fare before getting in or insist on the meter.
• Airport — Oaxaca International Airport (OAX) is 7 km south. A taxi costs MXN 150–200. Colectivos cost MXN 30–40.
• Day trips: Monte Albán (20 minutes, colectivo MXN 50), Mitla (1 hour, bus MXN 40), Hierve el Agua (2 hours, colectivo + truck MXN 100), and the Pacific coast (Puerto Escondido, 8 hours by bus or 1 hour by flight).
• Pro tip: download offline maps. Street names are inconsistently marked and the centre is a maze of cobblestone alleys.

See: ruins, churches, and the free afternoon

Oaxaca's best experiences are surprisingly cheap:

• Zócalo — free. The main square, surrounded by cafés, arcades, and the cathedral. The living room of Oaxaca. Sit, watch, listen to marimba bands.
• Santo Domingo Church and Cultural Centre — church entry free, museum MXN 75 (£3.40). The church is one of the most ornate in Mexico. The museum has extraordinary Zapotec and Mixtec gold.
• Monte Albán — MXN 80 (£3.60). The ancient Zapotec capital, 20 minutes from the city. Pyramids, tombs, and panoramic views. One of Mexico's greatest archaeological sites.
• Mercado 20 de Noviembre — free to enter. The food hall is the best market eating in Mexico. Grilled meat, tlayudas, chocolate, and mezcal.
• Mercado Benito Juárez — free. Produce, flowers, cheese, and textiles.
• Textile Museum (Museo Textil de Oaxaca) — free. Indigenous textiles from across Oaxaca. Beautiful and informative.
• Graphic Arts Institute of Oaxaca (IAGO) — free. Contemporary art in a colonial courtyard.
• Ethnobotanical Garden — MXN 100 (£4.50). Behind Santo Domingo. Cacti, agave, and medicinal plants. Tours in English at 12 PM and 5 PM.
• Street art — Oaxaca has one of Mexico's best street art scenes. Walk Jalatlaco, Xochimilco, and the walls around the centro. Free.
• Day trips: Mitla (Zapotec ruins, MXN 75), Hierve el Agua (petrified waterfall, MXN 50), and the Tule Tree (2,000-year-old cypress, free to see).
• Festivals: Guelaguetza (July, indigenous dance festival), Day of the Dead (October 31–November 2, extraordinary), and Noche de Rábanos (December 23, radish-carving competition). Free to watch.

The MXN 200–400 splurges that are worth it

Some things justify the pesos in Oaxaca:

• Casa Oaxaca — modern Oaxacan cuisine in a colonial courtyard. Mole tasting menu, local ingredients, excellent mezcal list. MXN 300–400 per person. Book ahead.
• Mezcal tasting at In Situ — the city's most serious mezcal bar. 40+ varieties, knowledgeable staff, and a courtyard setting. MXN 150–250 for a guided tasting.
• Cooking class — learn to make mole, tlayudas, and salsa from a local cook. MXN 600–1,000 for a half-day class including market tour and lunch.
• Day trip to Hierve el Agua — the petrified waterfall and natural swimming pools. MXN 200–300 including transport. One of the most beautiful sights in Mexico.
• Textile shopping — Oaxacan rugs, tapestries, and embroidered blouses from Teotitlán del Valle or the markets. MXN 200–2,000 depending on size and quality. Bargaining is expected.
• Art buying — Oaxaca has a world-class art scene. Prints from MXN 300, paintings from MXN 1,000. The best galleries are around Alcala Street and in Jalatlaco.
• One great dinner: Casa Oaxaca or Los Danzantes. MXN 300–400. The mole alone justifies the price.

Final Vayango note

Oaxaca doesn't want you to spend money. It wants you to sit in the Zócalo with a hot chocolate, watch a Zapotec dance, and understand that a city can be poor, proud, and extraordinarily beautiful. The food is the best in Mexico. The mezcal is the best in the world. The markets are a riot of colour, smell, and sound. Don't rush. Eat the chapulines. Drink the mezcal. Visit Monte Albán at 8 AM before the heat. Oaxaca rewards the traveler who arrives with an open mind and an empty stomach.