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MarketsNew MexicoRoswell

Cap Rate Analysis: Roswell, NM

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

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

Strong investment fundamentals
Based on $170,000 median price and $1,240/mo median rent
Est. Cap Rate
6.70%
1% Rule
0.73%
Fails
GRM
11.4x
Price / Income
3.3x

Market Data

Median Home Price$170,000
Median Monthly Rent$1,240
Property Tax Rate0.77%
Population50,000
Population Growth0.8% / yr
Median Household Income$51,750
Vacancy Rate5.5%
Annual Appreciation2.7%

Cap Rate Calculator — Roswell

Pre-filled with Roswell 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
5.53%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$9,394
net operating income
Gross Rent Multiplier
11.4x
Good (<15)
1% Rule
0.73%
✗ Fails
Monthly Cash Flow
$783
before debt service
Annual Breakdown
Gross Rental Income$14,880
Less Vacancy−$818
Effective Income$14,062
Less Operating Expenses−$4,668
Net Operating Income$9,394
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Cash-on-Cash Return — Roswell

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

$
$42,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-2.83%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$47,600
$42,500 down + $5,100 closing
Monthly Mortgage
$831
on $128K loan
Monthly Cash Flow
$-112
after all expenses
Annual Cash Flow
$-1,346
before taxes
Cash Flow Breakdown
Monthly Rent$1,240
Less Expenses−$521
Less Mortgage−$831
Monthly Cash Flow$-112

Is Roswell a Good Place to Invest in Rental Property?

Roswell, 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 $170,000 paired with median rents of $1,240/mo produces an estimated cap rate of 6.70%.

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 3.3x, homes cost about 3.3 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: Roswell offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.

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