Real Estate Investing in Farmington, New Mexico (87402)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 87402 (Farmington, NM)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High price-to-rent: Price-to-rent ratio 25.5 — hard to cash-flow at these prices.
What’s happening in Farmington, NM (87402)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 87402 Farmington
ZIP 87402 inside San Juan County looks affordable on the surface — median value of $337K — but the discount exists for reasons that a careful buyer should understand before committing.
The investment case in 87402 is sturdy only for operators who understand what they are buying. A $337K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Regionally, 87402 sits on the difficult end of the NM spectrum. The a credible choice for read — for disciplined operators — is that pricing reflects the difficulty.
The demographic picture in 87402 includes headwinds that any investor should price in. Income distribution skews lower than Farmington averages, and tenant stability requires active management.
Experienced landlords with local relationships tend to find 87402 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Farmington:
Property Strategy for 87402
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $213,544 | $1,200 | 4.0% | +7.3% | $106,772 |
| 3BR | $309,136 | $1,670 | 3.9% | +8.1% | $103,045 |
| 4BR | $421,584 | $1,800 | 3.1% | +7.4% | $105,396 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 87402 Compare?
| Metric | 87402 | Farmington | Farmington, NM | New Mexico |
|---|---|---|---|---|
| Home Value | $337,091 | $203,948 | N/A | $308,799 |
| 5-Year CAGR | 8.2% | 7.8% | N/A | 7.3% |
| Avg Rent | $1,100 | $1,182 | N/A | - |
| Cap Rate | 2.6% | 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 87402 (Farmington, NM). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 87402 (Farmington, NM)?
~25 seconds · no account needed · your report is anonymous
📊 Market Snapshot
| Home Value | $337,091 |
| Monthly Rent | $1,100 |
| Price-to-Rent | 25.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.9% |
| Cap Rate | 2.6% |
| 5-Year IRR | 10.7% |
📈 Home Appreciation
| 1-Year | +8.0% ▲ |
| 3-Year CAGR | +5.8% ▲ |
| 5-Year CAGR | +8.2% ▲ |
| 10-Year CAGR | +5.9% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.6%). 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 87402
Population: 10,997
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 87402
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 in NM worth investing in?
Investors tracking Farmington, NM will find a 3.0/5 rating supported by $337K median home values and $1,100/mo rents. That profile suits long-term holders targeting reliable returns.
What price range are homes in Farmington, NM?
The median home value in Farmington, NM is roughly $337K. That puts it reasonable relative to the NM statewide average.
How strong are rents in Farmington, NM?
Investors in Farmington, NM typically see rents near $1,100/mo per month against $337K home values - a solid setup for rental cash flow.
What real estate strategy is ideal for Farmington, NM?
Farmington, NM investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($337K prices, $1,100/mo rents) make it a reasonable choice.
How qualified is the tenant pool in Farmington, NM?
Expect a solid tenant pool in Farmington, NM. The rental market absorbs $1,100/mo rents without meaningful friction.
You know 87402 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 87402 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 87402 ranks in Farmington, NM
Every ZIP in this metro, ranked. Free.
AI Market Advisor
Ask questions about investing in 87402 (Farmington)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 87402 (Farmington, NM).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.