Real Estate Investing in Raton, New Mexico (87740)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 87740 (Raton, NM)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 16.0% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Raton, NM (87740)?
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Market Analysis: 87740 Raton
The 87740 ZIP covers a section of Raton that demands careful diligence. Prices near $153K look accessible, but the work to make a deal cash flow is real.
The investment case in 87740 is substantial only for operators who understand what they are buying. A $153K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
The gap between 87740 and stronger Raton ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
The demographic picture in 87740 includes headwinds that any investor should price in. Income distribution skews lower than Raton averages, and tenant stability requires active management.
Strategically, 87740 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Raton:
Property Strategy for 87740
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $118,631 | $1,020 | 6.2% | +8.7% | $59,316 |
| 3BR | $200,199 | $1,360 | 4.9% | +8.5% | $66,733 |
Market Trends
Home Value History (with trend line)
📊 How Does 87740 Compare?
| Metric | 87740 | Raton | New Mexico |
|---|---|---|---|
| Home Value | $153,258 | $153,258 | $308,799 |
| 5-Year CAGR | 4.7% | 4.7% | 7.3% |
| Avg Rent | $918 | $918 | - |
| Cap Rate | 4.7% | 4.7% | - |
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 87740 (Raton, NM). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $153,258 |
| Monthly Rent | $918 |
| Price-to-Rent | 13.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.2% |
| Cap Rate | 4.7% |
| 5-Year IRR | 9.4% |
📈 Home Appreciation
| 1-Year | +6.8% ▲ |
| 3-Year CAGR | +6.7% ▲ |
| 5-Year CAGR | +4.7% ▲ |
| 10-Year CAGR | +5.4% ▲ |
🏠 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 (4.7%). 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 87740
Population: 7,055
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 87740
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 much should I expect to pay for a home in Raton, NM?
Typical homes in Raton, NM go for around $153K. The 5-year CAGR of 0.0% consistent price movement.
Is Raton, NM suited for a house hack?
For house hackers, Raton, NM is a challenging. The $918/mo rent on a unit helps defray the mortgage on a $153K property.
Is the tenant base reliable in Raton, NM?
The renter base in Raton, NM is reasonable for the $918/mo price point. Screening well and pricing to market typically yields even-keeled tenants.
Are eviction rules reasonable in Raton, NM?
Raton, NM falls under NM landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
Are rents high in Raton, NM?
Raton, NM rentals go for roughly $918/mo a month. That puts gross yield in solid territory relative to $153K acquisition costs.
You know 87740 now. You don’t know where it ranks.
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Community Ratings
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