Real Estate Investing in Caballo, New Mexico (87931)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 87931 (Caballo, 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: 20.6% of homes vacant — above national norms.
- Elevated poverty: 21.0% poverty rate — can affect rent collection.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Caballo, NM (87931)?
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Market Analysis: 87931 Caballo
The 87931 ZIP in Caballo, NM is a local-operator market. Outside capital chasing a $201K entry has to pair deep knowledge with the discount.
Rent of $900/mo on a $201K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 87931 sits below the stated 0.0% once reality is priced in.
In the broader NM picture, 87931 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
Who lives in 87931 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
Distressed ZIPs reward experience. durable returns are possible in 87931, 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 Caballo:
Market Trends
Home Value History (with trend line)
📊 How Does 87931 Compare?
| Metric | 87931 | Caballo | New Mexico |
|---|---|---|---|
| Home Value | $200,795 | $200,795 | $308,799 |
| 5-Year CAGR | 2.4% | 2.4% | 7.3% |
| Avg Rent | $900 | $900 | - |
| Cap Rate | 3.5% | 3.5% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 87931 (Caballo, NM). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $200,795 |
| Monthly Rent | $900 |
| Price-to-Rent | 18.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.4% |
| Cap Rate | 3.5% |
| 5-Year IRR | 5.9% |
📈 Home Appreciation
| 1-Year | +12.9% ▲ |
| 3-Year CAGR | +0.9% ▲ |
| 5-Year CAGR | +2.4% ▲ |
| 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 (3.5%). 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 87931
Population: 512
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
Frequently Asked Questions
What price range are homes in Caballo, NM?
In Caballo, NM the median home value sits at $201K. Against the broader NM market, that reads as reasonable for most investors.
What is the investability score for Caballo, NM?
With a 3.0/5 investability score, Caballo, NM ranks as a solid market for rental property investors. Median prices of $201K and rents of $900/mo drive the underlying numbers.
What is the typical renter like in Caballo, NM?
Tenant demand in Caballo, NM is solid. The local workforce $900/mo rents across most rental classes.
What is it like being a landlord in Caballo, NM?
Landlord-friendliness in Caballo, NM is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
Is Caballo, NM good for house hacking?
Caballo, NM is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $201K price point reasonable to enter.
You know 87931 now. You don’t know where it ranks.
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