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MarketsNew MexicoAlamogordo

Cap Rate Analysis: Alamogordo, NM

Investment metrics, interactive calculators, and data-driven analysis for Alamogordo rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Moderate — source deals carefully
Based on $225,000 median price and $1,470/mo median rent
Est. Cap Rate
5.84%
1% Rule
0.65%
Fails
GRM
12.8x
Price / Income
4.3x

Market Data

Median Home Price$225,000
Median Monthly Rent$1,470
Property Tax Rate0.77%
Population50,000
Population Growth0.8% / yr
Median Household Income$51,750
Vacancy Rate5.5%
Annual Appreciation2.7%

Cap Rate Calculator — Alamogordo

Pre-filled with Alamogordo medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.77% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.83%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,862
net operating income
Gross Rent Multiplier
12.8x
Good (<15)
1% Rule
0.65%
✗ Fails
Monthly Cash Flow
$905
before debt service
Annual Breakdown
Gross Rental Income$17,640
Less Vacancy−$970
Effective Income$16,670
Less Operating Expenses−$5,808
Net Operating Income$10,862
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Cash-on-Cash Return — Alamogordo

Factor in financing to see your actual return on invested capital in Alamogordo.

$
$56,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-4.71%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$63,000
$56,250 down + $6,750 closing
Monthly Mortgage
$1,100
on $169K loan
Monthly Cash Flow
$-247
after all expenses
Annual Cash Flow
$-2,965
before taxes
Cash Flow Breakdown
Monthly Rent$1,470
Less Expenses−$617
Less Mortgage−$1,100
Monthly Cash Flow$-247

Is Alamogordo a Good Place to Invest in Rental Property?

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.

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