Real Estate Investing in Chama, New Mexico (87520)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 87520 (Chama, NM)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 53.9% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 30.8 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Chama, NM (87520)?
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Market Analysis: 87520 Chama
ZIP 87520 in Chama, NM carries a healthy set of headwinds. Home values near $323K and rents of $873/mo sit inside a market where underwriting has to be tight.
The 87520 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
On the rental side, 87520 offers a low basis, the region around Chama has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Employment concentration in 87520 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
Strategy in 87520 is an operator game, not a passive one. Looking more closely, entry prices of $323K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Chama:
Market Trends
Home Value History (with trend line)
📊 How Does 87520 Compare?
| Metric | 87520 | Chama | New Mexico |
|---|---|---|---|
| Home Value | $322,651 | $322,651 | $308,799 |
| 5-Year CAGR | 3.4% | 3.4% | 7.3% |
| Avg Rent | $873 | $873 | - |
| Cap Rate | 2.1% | 2.1% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 87520 (Chama, NM). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $322,651 |
| Monthly Rent | $873 |
| Price-to-Rent | 30.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.3% |
| Cap Rate | 2.1% |
| 5-Year IRR | 5.5% |
📈 Home Appreciation
| 1-Year | +3.9% ▲ |
| 3-Year CAGR | +2.7% ▲ |
| 5-Year CAGR | +3.4% ▲ |
| 10-Year CAGR | N/A |
🏠 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 (2.1%). 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 87520
Population: 1,088
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 87520
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.
Frequently Asked Questions
How quickly do rentals get leased in Chama, NM?
Rental vacancy in Chama, NM is elevated. Investors should budget normal turnover but not chronic empty units.
What real estate strategy is ideal for Chama, NM?
In Chama, NM the resilient play is typically careful cash-flow rentals with hands-on management. The combination of $323K prices and $873/mo rents suits that approach.
What do rentals go for in Chama, NM?
Investors in Chama, NM typically see rents near $873/mo per month against $323K home values - a solid setup for rental cash flow.
Is Chama, NM a good market for FHA house hackers?
House hacking in Chama, NM is reasonable to execute. Prices around $323K and rents of $873/mo solid owner-occupant economics.
How does Chama, NM rate as a rental market?
The 3.0/5 investability rating in Chama, NM reflects its $323K prices and $873/mo rents. Investors generally consider it a solid option within NM.
You know 87520 now. You don’t know where it ranks.
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