What's a good cap rate in Albuquerque?

In Albuquerque, cap rates typically run around 6.8% (Albuquerque metro median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Albuquerque deal lands versus this benchmark.

What's the average rent for a rental in Albuquerque?

A typical rental in Albuquerque runs about $1,464–$2,036/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in New Mexico?

New Mexico's effective property tax rate is about 0.67% of value per year — the figure TrueCap applies by default for Albuquerque deals. You can override it with the exact local rate.

Albuquerque, NM

Albuquerque rental property analysis

Albuquerque is an affordable Southwest market with steady demand from Sandia Labs, Kirtland AFB, and the University of New Mexico.

Albuquerque market snapshot

Balanced market

Mid-range cap rates — cash flow and appreciation are both realistically on the table.

Typical cap rate

6.8%

Albuquerque metro median

Typical rent

$1,464–$2,036/mo

HUD FMR · 2–3BR · 2026

Typical price

$260,000–$350,000

est., all-in

Property tax

0.67%

New Mexico effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Albuquerque a good place to buy rentals?

Reasonable entry plus durable employment anchors make for dependable, moderate cash flow. A solid balanced market without coastal pricing.

Neighborhoods to look at in Albuquerque

Northeast Heights

Desirable, stable, strong demand.

Westside

Newer SFRs, family renters.

International District

Value-add, higher cash flow, more management.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Albuquerque deal in 60 seconds

Paste a Albuquerque address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with New Mexico tax and HUD rent so you start from the right assumptions.

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