Updated 2026 · Based on median market data for Taos, NM
Taos sits in the West with a population of 50,000 growing at 0.8% annually. The median home costs $430,000 while rents average $2,160/mo, producing an estimated cap rate of 4.13%. This is a moderate market that rewards careful deal sourcing.
Taos works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 4.13% 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 $430,000 median — around $344,000 or less. At this price point with $2,160/mo rents, your cap rate improves to roughly 5.6%. Factor in 0.77% property taxes ($3,311/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 $2,664.
Higher price points mean more capital at risk and tighter cash flow margins — ensure you have adequate reserves. 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 Taos property using our cap rate calculator (pre-filled with Taos data). Compare Taos against similar markets in the West region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.
Taos vs New Mexico state average and national average across key investment metrics. Taos beats the national average but trails the New Mexico average on cap rate.