Alamogordo is a budget-friendly market in the West with a small but investable metro of 50,000. At a 5.84% estimated cap rate, this is a solid market where rents of $1,470/mo lag behind home prices. With a median home price of $225,000 and steady population growth supports long-term rental demand, Alamogordo stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Alamogordo's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $225,000, the $1,470/mo rent produces only $1,095/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($45K at 7%) would result in approximately $-102/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
The 12.8x gross rent multiplier and 5.5% vacancy rate position Alamogordo as a value-oriented market. With annual appreciation at 2.7%, total returns (cash flow + equity growth) run approximately 8.5% before financing leverage.
Pre-filled with Alamogordo medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Alamogordo.
Alamogordo, NM has a population of 50,000 and has been growing at 0.8% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $225,000 paired with median rents of $1,470/mo produces an estimated cap rate of 5.84%.
Property taxes at 0.77% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 4.3x, homes cost about 4.3 times the local median income of $51,750. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.7% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Alamogordo presents moderate opportunities. Cap rates near 5.84% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.