Real Estate Investing in Albuquerque, New Mexico (87106)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 87106 (Albuquerque, NM)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 11.6% vacancy may signal weakening demand.
What’s happening in Albuquerque, NM (87106)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 87106 Albuquerque
ZIP 87106 inside Bernalillo County looks affordable on the surface — median value of $371K — but the discount exists for reasons that a careful buyer should understand before committing.
From a cash-flow lens, the numbers look inviting — $371K purchase price, 0.0% nominal cap — the work to hit that pro forma in 87106 is substantial and deserves full respect.
The gap between 87106 and stronger Albuquerque ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Meanwhile, 26,815 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
looks to the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Albuquerque:
Property Strategy for 87106
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $181,420 | $1,130 | 4.5% | +9.3% | $181,420 |
| 2BR | $304,590 | $1,390 | 3.3% | +7.6% | $152,295 |
| 3BR | $390,856 | $1,930 | 3.6% | +6.8% | $130,285 |
| 4BR | $499,254 | $2,280 | 3.3% | +7.1% | $124,813 |
| 5BR | $610,406 | — | — | +6.8% | $122,081 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 87106 Compare?
| Metric | 87106 | Albuquerque | Albuquerque, NM | New Mexico |
|---|---|---|---|---|
| Home Value | $371,173 | $141,103 | N/A | $308,799 |
| 5-Year CAGR | 4.7% | 5.9% | N/A | 7.3% |
| Avg Rent | $1,384 | $1,488 | N/A | - |
| Cap Rate | 2.9% | 3.2% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 87106 (Albuquerque, NM). Anonymous, moderated, never written by AI.
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Property managers serving Bernalillo County
Manage rentals here? List your business →Rhino Realty Property Management offers full-service property management and investment services for single-family homes, multifamily properties, condos, townhomes, and apartments in Albuquerque and R summary from their website
BottomLineManagement.com is a domain name available for sale. summary from their website
Deacon Property Services operates as a real estate agency. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $371,173 |
| Monthly Rent | $1,384 |
| Price-to-Rent | 22.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.5% |
| Cap Rate | 2.9% |
| 5-Year IRR | 7.7% |
📈 Home Appreciation
| 1-Year | +2.7% ▲ |
| 3-Year CAGR | +2.6% ▲ |
| 5-Year CAGR | +4.7% ▲ |
| 10-Year CAGR | +5.1% ▲ |
🏠 Rent Trends
| 1-Year | +12.4% ▲ |
| 3-Year CAGR | +5.8% ▲ |
| 5-Year CAGR | +7.2% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.9%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 87106
Population: 26,815
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 87106
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 10,321 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What is the typical home price in Albuquerque, NM?
Albuquerque, NM median home values land near $371K. That is reasonable territory for investors looking at $1,384/mo-per-month rentals.
How deep is the rental pool in Albuquerque, NM?
Tenant quality in Albuquerque, NM ranks as solid. Landlords generally report steady occupancy at market rents of $1,384/mo.
What monthly rent should investors expect in Albuquerque, NM?
Expect rents around $1,384/mo per month in Albuquerque, NM. With home values at $371K, the yield math works out to reasonable levels for rental investors.
Is Albuquerque, NM a good market for FHA house hackers?
For house hackers, Albuquerque, NM is a challenging. The $1,384/mo rent on a unit helps defray the mortgage on a $371K property.
What type of investing works in Albuquerque, NM?
For Albuquerque, NM, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
You know 87106 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 87106 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 87106 ranks in Albuquerque, NM
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