New Mexico was once part of the country of Mexico. Today, this U.S. state is a hub for global investors.
With its lower property costs, steady rental demand, and thriving tourist industry, New Mexico could be your next investment destination. Let’s look at the best cities for rental income in New Mexico.
Albuquerque is New Mexico’s largest city with a population of over 560,000 residents. It has the right balance of big-city amenities and Southwestern charm. Home to the famous Albuquerque International Balloon Fiesta (which hit an all-time high of over 968,000 attendees in 2023), the city attracts tourists, professionals, and students. Given its population size, there’s steady rental demand for real estate investors looking to take advantage.
Investors and residents flock to the city for relatively affordable property prices relative to other areas. For example, just to the north in the neighboring state of Colorado, the median home prices in its capital city of Denver are about $200,000 higher.
Santa Fe is widely known as the cultural heart of New Mexico. The oldest capital city in the United States, Santa Fe attracts around 2 million visitors annually. Many visitors come in search of great Western art, Southwest cuisine, and exciting festivals.
Santa Fe’s property prices are higher than any other city on this list, but the demand for rentals remains strong. While the median rent decreased slightly, this is seen as a correction for skyrocketing rent prices in the years following the COVID-19 pandemic.
With a booming tourism scene and an influx of retirees and remote workers from across the country, investors can choose from many different investment strategies. Short-term rentals are especially lucrative here, with hosts making approximately $48,000 per year.
Las Cruces is an appealing option for investors on a smaller budget, offering affordable property prices and a stable rental market.
Located near the Texas border, this city draws students from New Mexico State University, military personnel from the nearby base, and retirees seeking a warm climate. Las Cruces' lower cost of living and steady rental demand make it an intriguing location for real estate investors with 46% of its households occupied by renters.
Roswell – yes, the one famous for aliens! In the 1940s, the U.S. military issued a statement that there was a “flying disc” discovered on a ranch. That doesn’t mean you need to buy a flying saucer to invest in real estate here, though. This quirky town attracts a steady flow of visitors eager to explore its UFO history, making short-term rentals particularly appealing.
Roswell also has a growing job market, particularly in the aviation and aerospace industries. Select aerospace companies have recently received grants to train their workforce and invest in the local economy. As the city with the lowest property prices on this list, Roswell offers investors an affordable entry point into real estate.
Located in the Four Corners region, Farmington sits on the state borders of New Mexico, Colorado, Utah, and Arizona.This city is a lesser-known gem in New Mexico with a growing rental market.
Farmington’s affordable property prices attract both renters and investors, and its economy is supported by industries like energy, agriculture, and retail. The city’s outdoor attractions – from fishing to off-roading – make it popular with adventure seekers, providing extra potential for seasonal rental income.
New Mexico’s fastest-growing city, Rio Rancho offers a suburban feel with close proximity to Albuquerque. It’s particularly popular with young families and professionals who want an affordable alternative to Albuquerque’s rising prices without losing all of the cultural excitement found in the city.
Rio Rancho also has a strong job market driven by tech and healthcare, which encourages a steady demand for rentals, making it a potential choice for investors interested in long-term tenants.
New Mexico has a diverse mix of investment opportunities. With its affordability, steady rental demand, and growing tourism, New Mexico could be home to your next real estate investment.
As you explore properties across this beautiful state, it’s important to have a lender in mind who can help you get to the closing table. Waltz simplifies the entire mortgage process, with digitized paperwork, U.S.-based bank accounts, and competitive financing. Let your investment journey begin with Waltz by your side!
All figures are accurate as of November 2024 and may change over time.* Sources for all city-related statistics:
Home price data: Zillow Housing Market
Rental price data: Zillow Rental Market Trends
Property tax data: Smart Asset Property Tax Calculator
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