Updated 2026 · Based on median market data for Hobbs, NM
The median monthly rent in Hobbs, NM is $1,330, translating to $15,960 in annual gross rental income per unit. The rent-to-price ratio is 0.68% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Hobbs spend approximately 31% 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 Hobbs 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.
Hobbs's GRM (price divided by annual rent) is 12.2x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $1,330/mo, a single-family rental in Hobbs generates approximately $15,960 in gross annual income. After accounting for 5.5% vacancy ($878 lost), property taxes of $1,502, insurance (~$780), and maintenance (~$780), the estimated NOI is $12,021 per year, or $1,002/mo.
Hobbs vs New Mexico state average and national average across key investment metrics. Hobbs outperforms both benchmarks on cap rate.