Cap rates 5.5–6.5% · Median price $260,000 · Median rent $1,300/mo · Population 565K
Albuquerque is an underrated cash flow market with low prices, a major university (UNM), Kirtland Air Force Base, and a growing film industry (Breaking Bad country brings productions). Landlord-friendly New Mexico laws.
Here's what the numbers look like on a typical Albuquerque rental at current market rates (20% down, 7.5% rate, standard expenses):
| Metric | As-Is (Current Rents) | Stabilized (Market Rents) |
|---|---|---|
| Purchase Price | $260,000 | $260,000 |
| Down Payment (20%) | $52,000 | $52,000 |
| Monthly Rent | $1,170 | $1,300 |
| Monthly Mortgage | $1,454 | $1,454 |
| Monthly OpEx (est 35%) | $410 | $455 |
| Est. Monthly Cash Flow | $-694/mo | $-609/mo |
| Cap Rate | 3.5% | 3.9% |
* Estimates only. Uses 20% down, 7.5% rate, 30yr term, 35% expense ratio, 5% vacancy. Run your own numbers with the calculator below.
Best for cash flow: Focus on workforce housing in established neighborhoods with strong employer anchors. Avoid chasing the highest raw yield numbers — the 10% cap rate in a declining neighborhood often means vacancy and management headaches that destroy returns.
Best for appreciation: Target neighborhoods within 2 miles of job centers, universities, or transit that are in the early stages of gentrification. Look for the coffee shop / yoga studio signal — amenities follow renters, and renters follow amenities.
Best for STR: Check local STR regulations carefully before investing. Some {name} neighborhoods have restrictions on short-term rentals.
DSCR Loans: Most Albuquerque properties qualify for DSCR financing with a 1.0+ ratio. Use our DSCR Calculator to check qualification before making an offer.