Market Analysis
Albuquerque Rental Market
Rental investment market data and analysis · Updated November 2026
Median Home Price
$395,000
Average Monthly Rent
$1,519
Estimated Cap Rate
4.6%
Rent-to-Price Ratio
0.4%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · November 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 87105 | $300,000 | $1,200 | 0.40% |
| 87122 | $625,000 | $2,225 | 0.36% |
| 87110 | $339,999 | $1,145 | 0.34% |
| 87111 | $450,000 | $1,505 | 0.33% |
Context · FRED home price index
Market Trends
Albuquerque metro area — % change since 2018
Home Prices
+82.2%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Multi-Family | $850/mo |
| Apartment | $1,356/mo |
| Condo | $1,374/mo |
| Townhouse | $1,900/mo |
| Single Family | $2,148/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$395,000
Down Payment (20%)$79,000
Monthly P&I$2,060
Monthly Rent$1,519
Est. NOI$10,937/yr
Est. Cash Flow-$1,149/mo
Cash on Cash-15.9%
The Albuquerque market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.
What Investors Should Know About Albuquerque
- 1Compressed cap rates below 5% — focus on appreciation or value-add deals
- 21% Rule fails at median prices — need rent of $3,950/mo to pass
- 3Below-average rents keep entry costs low for new investors
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