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MarketsNew MexicoRoswellRental Property Investment Guide

Rental Property Investment Guide: Roswell, NM

Updated 2026 · Based on median market data for Roswell, NM

Cap Rate
6.70%
Median Price
$170K
Rent/Mo
$1,240
1% Rule
0.73%
Fails

Market Snapshot

Roswell sits in the West with a population of 50,000 growing at 0.8% annually. The median home costs $170,000 while rents average $1,240/mo, producing an estimated cap rate of 6.70%. This puts Roswell in the upper tier of investable US markets.

Who Should Invest Here

Roswell is ideal for cash flow investors, BRRRR practitioners, and anyone building a portfolio of affordable, income-producing rentals. The low price point ($170,000) means you can get started with a $34,000 down payment, and the 6.70% cap rate should produce positive cash flow even with conservative financing.

Deal Criteria for Roswell

Target properties priced 15-25% below the $170,000 median — around $136,000 or less. At this price point with $1,240/mo rents, your cap rate improves to roughly 8.8%. Factor in 0.77% property taxes ($1,309/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 $1,113.

Risks and Considerations

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.

Next Steps

Run the numbers on a specific Roswell property using our cap rate calculator (pre-filled with Roswell data). Compare Roswell against similar markets in the West region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.

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How Roswell Compares

Roswell vs New Mexico state average and national average across key investment metrics. Roswell outperforms both benchmarks on cap rate.

Metric
Roswell
New Mexico Avg
National Avg
Cap Rate
6.70%
5.03%
3.81%
Median Price
$170K
$278K
$333K
Median Rent
$1,240
$1,488
$1,524
Property Tax
0.77%
0.77%
1.08%
Vacancy
5.5%
5.5%
5.6%
Pop. Growth
0.8%/yr
0.8%/yr
0.9%/yr

Nearby West Markets

City
Cap Rate
Price
Rent
Tax
Roswell, NM
6.7%
$170K
$1,240
0.77%
Clovis, NM
7.3%
$160K
$1,250
0.77%
Hobbs, NM
6.2%
$195K
$1,330
0.77%
Portales, NM
6.0%
$145K
$970
0.77%
Alamogordo, NM
5.8%
$225K
$1,470
0.77%

Frequently Asked Questions

Is Roswell, NM a good place to invest in rental property?
Roswell has an estimated cap rate of 6.70%, which is above the national average of 3.81%. With median home prices at $170K and rents of $1,240/mo, Roswell offers strong cash flow fundamentals for rental investors. Population growth of 0.8% and 5.5% vacancy rate indicate healthy tenant demand.
What is the average cap rate in Roswell?
The estimated cap rate for Roswell is 6.70%, based on median home prices of $170K, median rents of $1,240/mo, a 0.77% property tax rate, and 5.5% vacancy. This compares to a 5.03% average across New Mexico and 3.81% nationally. Cap rates for individual properties will vary based on purchase price, actual rents, and property condition.
How much does a rental property cost in Roswell?
The median home price in Roswell is $170,000, which is 49% below the national average of $333,419. A 20% down payment would be approximately $34,000. Investment properties in Roswell range significantly — targeting properties 15-25% below median can improve your cap rate substantially.
What are Roswell property taxes for investors?
Roswell's effective property tax rate is 0.77%, which is above the New Mexico average of 0.77% and below the national average of 1.08%. On a $170K property, annual taxes are approximately $1,309 ($109/mo). Low property taxes are a significant cash flow advantage here.
Full Roswell Analysis →Cap Rate CalculatorBRRRR Calculator

Explore Roswell & Related Markets

More Roswell Guides

Rent AnalysisProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

Similar Markets in the West

Carlsbad, NM$240K · $1,760/mo
6.7%
Hobbs, NM$195K · $1,330/mo
6.2%
Clovis, NM$160K · $1,250/mo
7.3%
Portales, NM$145K · $970/mo
6.0%
Safford, AZ$295K · $1,920/mo
6.0%
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