How much income do I need to buy a house in Las Cruces?

To afford the median Las Cruces home ($285,597.84) using conventional lending guidelines (28% of gross income to housing, 20% down payment), you'd need approximately $77,386 annual household income. With a smaller down payment, you'd need higher income to offset PMI costs, or could qualify for FHA/VA loans with different requirements.

What is the price-to-rent ratio in Las Cruces?

Las Cruces's price-to-rent ratio is 16.3. This ratio divides the median home price by annual rent. Generally, ratios under 15 favor buying, over 20 favor renting, and 15-20 is a toss-up. In Las Cruces, the decision depends more on personal factors than pure math.

How long should I plan to stay if I buy in Las Cruces?

Our analysis shows a break-even point of approximately 5-7 years in Las Cruces. This means if you sell before that point, you'd likely have more wealth if you had rented and invested the difference. We generally recommend planning to stay at least 5 years before buying, though in Las Cruces specifically, this general rule applies.

Is Las Cruces a good place to invest in real estate?

Las Cruces has seen negative appreciation of -3.8% over the past 5 years. The market has cooled, which could present buying opportunities for long-term investors. For investment analysis, use our Single Family or Multifamily calculator.

How do Las Cruces home prices compare to the national average?

Las Cruces home prices are below the national average by 29%. The median home in Las Cruces costs $285,597.84 compared to the national median of approximately $420,000. This relative affordability could make homeownership more accessible.

Rent vs Buy in Las Cruces, New Mexico

Should you rent or buy in Las Cruces? Get a personalized analysis based on current Las Cruces housing market data.

Median Home:$285,597.84

Median Rent:$1,459.16/mo

Price Change (1yr):-0.8%

Our Verdict: Rent

🔑

RENT

Our Recommendation for Las Cruces

In Las Cruces, New Mexico, renting may be more advantageous than buying. Over 10 years, renting and investing the difference could build approximately $123K more wealth. This is a strong recommendation based on current market conditions.

Break-even

N/A

10-Year Advantage

$123,356

renting wins

Confidence

100%

Price-to-Rent

16.3

Las Cruces Market Statistics

Median Home Price

$285,597.84

-29% vs national

Median Rent

$1,459.16/mo

-16% vs national

Property Tax Rate

0.80%

Price Change (1 Year)

-0.8%

Price Change (5 Year)

-3.8%

Price-to-Rent Ratio

16.3

-79% vs national avg

Income to Afford

$77,386

Days on Market

35 days

Data sources: Zillow, Tax Foundation. Last updated: 12/30/2025

Las Cruces Market Insights

Las Cruces's home prices have been relatively stable over the past year, changing just -0.8%. This stability can benefit both buyers seeking predictability and renters who aren't pressured to buy immediately.

Las Cruces's price-to-rent ratio of 16.3 is in the moderate range (15-20). Neither buying nor renting has a clear mathematical advantage based on this metric alone. Your decision should weigh personal factors like job stability and how long you plan to stay.

Home prices in Las Cruces are 29% below the national median of $402,356. This relative affordability could make homeownership more accessible than in many other major cities.

About This Analysis

These insights are generated based on current Las Cruces market data including median home prices, rental rates, property taxes, and historical appreciation. The analysis uses standard assumptions (20% down payment, 7% interest rate, 10-year horizon) for comparability. Your specific situation may differ—use our calculator below to run personalized numbers.

Run Your Own Numbers

Our analysis uses standard assumptions. Your situation may be different. Use our full Buy vs Rent calculator to input your specific income, down payment, and financial goals.

Home: $285,597.84

Rent: $1,459.16/mo

Tax: 0.80%

Open Calculator with Las Cruces Data

Other Tools:

🏠 House Hack CalculatorLive in one unit, rent the others 📊 Investment Property AnalyzerAnalyze rental property returns 🏢 Multifamily CalculatorUnderwrite 2-20 unit properties

Compare Nearby Markets

See how Las Cruces compares to other cities in New Mexico and the surrounding area.

City	Median Home	Median Rent	Price/Rent	Break-even	Verdict
Las Cruces(current)	$285,597.84	$1,459.16	16.3	N/A	Rent
Albuquerque	$339,864.74	$1,477.86	19.2	N/A	Rent
Rio Rancho	$366,486.86	$1,916.65	15.9	N/A	Rent
Santa Fe	$543,970.34	$2,000.21	22.7	N/A	Rent

Click on a city name to see its detailed rent vs buy analysis.

Frequently Asked Questions

Based on current Las Cruces market data (median home price: $285,597.84, median rent: $1,459.16/month), our analysis suggests renting. The break-even point is approximately N/A years. However, your personal situation (income, savings, job stability, plans to stay) significantly impacts this decision. Use our calculator to run your specific numbers.

Our Methodology

Our rent vs buy analysis uses a comprehensive financial model that compares the total cost of homeownership against renting and investing the difference. Here's how we calculate each verdict:

1Buying Costs We Include

Mortgage principal and interest (P&I)
Property taxes (using local rates)
Homeowner's insurance
PMI (if down payment is less than 20%)
Maintenance costs (1-2% of home value/year)
Transaction costs (closing costs, realtor fees)
Home appreciation over time

2Renting + Investing Assumptions

Monthly rent with annual increases (~3%/year)
Renter's insurance
Down payment invested in stock market
Monthly savings (buy cost - rent cost) invested
7% average annual stock market returns
Investment growth over holding period

Standard Assumptions for City Analysis

Down Payment

20%

Interest Rate

7.0%

Loan Term

30 years

Time Horizon

10 years

How We Determine the Verdict

Buy: When buying builds $20,000+ more wealth than renting over 10 years
Rent: When renting + investing builds $20,000+ more wealth than buying over 10 years
Toss-Up: When the difference is less than $20,000 either way—lifestyle factors should guide your decision

Note: This analysis provides general guidance based on market averages. Individual results will vary based on specific property characteristics, negotiated prices, timing, and personal financial factors. Always run your own numbers with our full calculator for personalized results.

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Ready to Run Your Numbers?

This analysis uses standard assumptions. Your situation is unique. Use our comprehensive Buy vs Rent calculator to input your specific income, savings, down payment, and financial goals.

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