Average capitalization rate in New Mexico, United States

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Capitalization rate description

A percentage that shows the potential annual return on a real estate investment based on the property's income.

The cap rate helps investors quickly assess and compare the profitability of different property investments.

\(\text{Cap Rate} = \frac{\text{Annual Rental Income} - \text{Annual Expenses}}{\text{Total Purchase Price}}\)

A higher cap rate suggests a potentially more profitable investment, though it should be considered alongside other financial metrics.

Average capitalization rate for residential properties in New Mexico

MedianMeanMode
8.2%
From 1,025,023 homes
8.6%
From 1,025,023 homes
-

Data updated November 14, 2026

Average capitalization rate for residential for cities in New Mexico

LocationMedianMeanMode
Abeytas
9.2%
From 33 homes
9.2%
From 33 homes
-
Abiquiu
6.8%
From 184 homes
6.8%
From 184 homes
-
Acomita Lake
8.9%
From 127 homes
9.0%
From 127 homes
-
Adelino
8.2%
From 332 homes
8.1%
From 332 homes
-
Agua Fria
7.4%
From 1,108 homes
8.1%
From 1,108 homes
-
Alamillo
7.2%
From 78 homes
7.5%
From 78 homes
-
Alamo
9.9%
From 140 homes
9.9%
From 140 homes
-
Alamogordo
7.6%
From 16,569 homes
7.7%
From 16,569 homes
-
Albuquerque
8.9%
From 204,649 homes
9.4%
From 204,649 homes
-
Alcalde
6.1%
From 179 homes
6.1%
From 179 homes
-

All cities in New Mexico