Updated 2026 · Based on median market data for Carlsbad, NM
The median monthly rent in Carlsbad, NM is $1,760, translating to $21,120 in annual gross rental income per unit. The rent-to-price ratio is 0.73% — below the 1% rule but within a range where deals can work with good financing.
Renters in Carlsbad spend approximately 41% of the local median household income ($51,750) on rent. This exceeds the standard 30% affordability threshold, suggesting rent growth may face resistance — but it also means a large portion of the population finds buying even more out of reach, supporting rental demand.
The vacancy rate in Carlsbad is 5.5%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 0.8% annually provides stable demand.
Carlsbad's GRM (price divided by annual rent) is 11.4x. A GRM under 12x is excellent — it means you're paying less than 12 years of gross rent for the property, suggesting strong income relative to price. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $1,760/mo, a single-family rental in Carlsbad generates approximately $21,120 in gross annual income. After accounting for 5.5% vacancy ($1,162 lost), property taxes of $1,848, insurance (~$960), and maintenance (~$960), the estimated NOI is $16,190 per year, or $1,349/mo.
Carlsbad vs New Mexico state average and national average across key investment metrics. Carlsbad outperforms both benchmarks on cap rate.