Is Otero County, NM good for real estate investing?

Otero County has an investment score of 60/100, rated as "Buy". The county ranks #331 nationally among 1000 counties analyzed.

What is the rent-to-price ratio in Otero?

The rent-to-price ratio in Otero County is 7.88% annually, which ranks in the 90th percentile nationally. Higher ratios indicate better cash flow potential.

What is the median home price in Otero?

The median home price in Otero County is $224,753. This ranks #454 in affordability among all US counties.

Can you cash flow on rental properties in Otero?

Based on median values with 20% down at current rates, a typical rental in Otero County would generate negative cash flow of $219/month. Individual property performance varies based on purchase price, rent, and operating expenses.

Otero County

New MexicoPopulation: 67,850

/100

Buy

#331 of 1,000 counties

#8 in New Mexico (30 counties)

Market Snapshot

$224,753

Median Home Price

4% below national median

$1,476/mo

Median Rent

2% below national median

7.88%

Rent-to-Price Ratio

Top 10% nationally

-$219

Est. Monthly Cash Flow

With 20% down at 6.9% rate

Price History

Historical data from Zillow ZHVI/ZORI

Quick Investment Calculator

Down Payment20%

5%50%100%

Purchase

Purchase Price$224,753

Down Payment (20%)$44,951

Loan Amount$179,802

Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$1,476

Monthly P&I-$1,178

Est. Expenses (35%)-$517

Net Cash Flow-$219/mo

5.1%

Cap Rate (all cash)

-5.1%

Cash-on-Cash Return

7.88%

Rent-to-Price Ratio

Negative leverage: At 6.85% rates, borrowing costs exceed the 5.1% cap rate. All-cash buyers may see better returns.

* Based on county median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Actual results vary by property.

Run Full Analysis Try House Hack Strategy

Score Breakdown

Overall Investment Score

60/100

Cash Flow(30%)

79/100

Based on 7.88% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)

46/100

Based on -0.8% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)

50/100

Population data not available.

Affordability(20%)

64/100

Price-to-income ratio of 4.4x. Lower ratios indicate more affordable markets.

Scores are calculated using real Zillow home value and rent data, Census population data, and economic indicators. The weighted average produces the overall investment score. Markets with missing rent data use estimated values based on regional averages.

Investment Outlook

Strengths

+Above-average rent-to-price ratio (7.88%)
+Complete rent data available

Challenges

-Declining home values (-0.8% YoY)
-Negative cash flow at typical financing (-$219/mo)
-Negative leverage (cap rate 5.1% < mortgage rate 6.9%)

Economic Indicators

Population

67,850

Median Income

$50,833

vs $57,018 national est.

Unemployment Rate

—

Data pending

Price-to-Income

4.4x

Moderately affordable

Compare to Nearby Counties

County					Verdict
McKinleyNM	62	$221,821	Est. pending	—	Buy	View
Los AlamosNM	61	$572,666	Est. pending	—	Buy	View
CurrentOteroNM	60	$224,753	$1,476	7.88%	Buy
San JuanNM	60	$259,732	$1,415	6.54%	Buy	View
Rio ArribaNM	59	$328,675	Est. pending	—	Hold	View
SocorroNM	59	$192,344	Est. pending	—	Hold	View

The Bottom Line

BuyOtero offers solid investment potential with good cash flow or appreciation prospects.

Otero County in New Mexico scores 60/100, ranking #331 of 1,000 US counties (top 44%). The 7.88% rent-to-price ratio indicates moderate cash flow potential.

Monthly Cash Flow

$-219/mo

Cap Rate

5.1%

Cash-on-Cash

-5.1%

Ready to Analyze a Deal in Otero?

Use our investment calculators to run detailed numbers on specific properties.

Single Family1-4 unit rentals, BRRRR House HackOwner-occupied strategy Multifamily5+ unit properties

Explore Other Markets

Quick Investment Calculator

Down Payment20%

5%50%100%

Purchase

Purchase Price$224,753

Down Payment (20%)$44,951

Loan Amount$179,802

Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$1,476

Monthly P&I-$1,178

Est. Expenses (35%)-$517

Net Cash Flow-$219/mo

5.1%

Cap Rate (all cash)

-5.1%

Cash-on-Cash Return

7.88%

Rent-to-Price Ratio

Negative leverage: At 6.85% rates, borrowing costs exceed the 5.1% cap rate. All-cash buyers may see better returns.

* Based on county median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Actual results vary by property.

Run Full Analysis Try House Hack Strategy

Score Breakdown

Overall Investment Score

60/100

Cash Flow(30%)

79/100

Based on 7.88% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)

46/100

Based on -0.8% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)

50/100

Population data not available.

Affordability(20%)

64/100

Price-to-income ratio of 4.4x. Lower ratios indicate more affordable markets.

County

Verdict

McKinleyNM

$221,821

Est. pending

—

Buy

View

Los AlamosNM

$572,666

Est. pending

—

Buy

View

CurrentOteroNM

$224,753

$1,476

7.88%

Buy

San JuanNM

$259,732

$1,415

6.54%

Buy

View

Rio ArribaNM

$328,675

Est. pending

—

Hold

View

SocorroNM

$192,344

Est. pending

—

Hold

View

The Bottom Line

BuyOtero offers solid investment potential with good cash flow or appreciation prospects.

Otero County in New Mexico scores 60/100, ranking #331 of 1,000 US counties (top 44%). The 7.88% rent-to-price ratio indicates moderate cash flow potential.

Monthly Cash Flow

$-219/mo

Cap Rate

5.1%

Cash-on-Cash

-5.1%