Real Estate Investing in Farmington, New Mexico (87401)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 87401 (Farmington, NM)? Our answer, based on the numbers below.
Mixed — home prices are stretched relative to local incomes. Run the math on your specific situation.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 10.9% vacancy may signal weakening demand.
- Elevated poverty: 20.0% poverty rate — can affect rent collection.
What’s happening in Farmington, NM (87401)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 87401 Farmington
Stepping back, ZIP 87401 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $275K median. It rewards specialists, not generalists.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $275K asset, 87401 is the wrong submarket. If the plan prices in friction, the yield can still work.
Regionally, 87401 sits on the difficult end of the NM spectrum. The a solid fit for read — for disciplined operators — is that pricing reflects the difficulty.
The demographic picture in 87401 includes headwinds that any investor should price in. Income distribution skews lower than Farmington averages, and tenant stability requires active management.
Distressed ZIPs reward experience. solid returns are possible in 87401, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Farmington:
Property Strategy for 87401
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $200,506 | $1,150 | 4.1% | +8.7% | $100,253 |
| 3BR | $273,371 | $1,600 | 4.2% | +9.0% | $91,124 |
| 4BR | $351,828 | $1,730 | 3.5% | +8.1% | $87,957 |
| 5BR | $408,709 | — | — | +7.6% | $81,742 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 87401 Compare?
| Metric | 87401 | Farmington | Farmington, NM | New Mexico |
|---|---|---|---|---|
| Home Value | $274,754 | $203,948 | N/A | $308,799 |
| 5-Year CAGR | 7.4% | 7.8% | N/A | 7.3% |
| Avg Rent | $1,264 | $1,182 | N/A | - |
| Cap Rate | 3.6% | 3.1% | - | - |
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 87401 (Farmington, NM). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $274,754 |
| Monthly Rent | $1,264 |
| Price-to-Rent | 18.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.5% |
| Cap Rate | 3.6% |
| 5-Year IRR | 11.0% |
📈 Home Appreciation
| 1-Year | +8.7% ▲ |
| 3-Year CAGR | +6.1% ▲ |
| 5-Year CAGR | +7.4% ▲ |
| 10-Year CAGR | +5.0% ▲ |
🏠 Rent Trends
| 1-Year | +0.1% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.6%). 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 87401
Population: 45,020
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 87401
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 3,029 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is Farmington, NM a good market for buy-and-hold investors?
Investors tracking Farmington, NM will find a 3.0/5 rating supported by $275K median home values and $1,264/mo rents. That profile suits long-term holders targeting predictable returns.
What is the average monthly rent in Farmington, NM?
Rent in Farmington, NM is around $1,264/mo. The resulting rent-to-value relationship with $275K pricing is reasonable for most investor models.
How tight is the rental market in Farmington, NM?
Farmington, NM carries elevated vacancy risk. Expect measured absorption at market rents of $1,264/mo.
Are homes affordable in Farmington, NM?
Farmington, NM home values average about $275K. That price point suits investors targeting rentals with $1,264/mo in monthly income.
What approach is best for Farmington, NM real estate?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Farmington, NM. The numbers - $275K homes against $1,264/mo rents - support that play.
You know 87401 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 87401 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 87401 ranks in Farmington, NM
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