Factor in financing to see your actual return on invested capital in Farmington.
$
$66,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.92%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$74,200
$66,250 down + $7,950 closing
Monthly Mortgage
$1,296
on $199K loan
Monthly Cash Flow
$-490
after all expenses
Annual Cash Flow
$-5,876
before taxes
Cash Flow Breakdown
Monthly Rent$1,390
Less Expenses−$584
Less Mortgage−$1,296
Monthly Cash Flow$-490
Is Farmington a Good Place to Invest in Rental Property?
Farmington, 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 $265,000 paired with median rents of $1,390/mo produces an estimated cap rate of 4.38%.
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 5.1x, homes cost about 5.1 times the local median income of $51,750. This moderate ratio indicates a balanced rent-vs-buy market. 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: Farmington presents moderate opportunities. Cap rates near 4.38% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
Sponsored
Get AI-Powered Property Insights
Homesage.ai analyzes 140 million properties with AI — spot hidden deals, assess property condition, and find investment opportunities. Free to try.