Updated 2026 · Based on median market data for Farmington, NM
Farmington sits in the West with a population of 50,000 growing at 0.8% annually. The median home costs $265,000 while rents average $1,390/mo, producing an estimated cap rate of 4.38%. This is a moderate market that rewards careful deal sourcing.
Farmington works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 4.38% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.
Target properties priced 15-25% below the $265,000 median — around $212,000 or less. At this price point with $1,390/mo rents, your cap rate improves to roughly 5.9%. Factor in 0.77% property taxes ($2,041/yr), budget 5% of gross rent for maintenance, and underwrite to a 5.5% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,680.
Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.
Run the numbers on a specific Farmington property using our cap rate calculator (pre-filled with Farmington data). Compare Farmington against similar markets in the West region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.
Farmington vs New Mexico state average and national average across key investment metrics. Farmington beats the national average but trails the New Mexico average on cap rate.