Farmington, NM
Farmington merits investigation by yield-focused buyers who can underwrite flood exposure and tenant depth; buyers needing strong purchase affordability or positive migration should avoid it.
Why this market scores where it does
Written from the figures on this page and then checked against them: every number below had to appear in the source record or recompute from two that did, or the text was rewritten.
Farmington merits investigation by yield-focused buyers who can underwrite flood exposure and tenant depth; buyers needing strong purchase affordability or positive migration should avoid it. Median asking rent is $1,286 and gross yield is 5.55%, while CES employment grew 1.5% year over year.
The opportunity is a tight supply backdrop: months of for-sale supply is 2.3 and the permit total is 76. Rent growth of 5.23% shows recent pricing momentum, but it should be treated as an observed result rather than a repeatable assumption. Price drops on 29.06% of listings indicate that tight inventory does not eliminate negotiating room.
The risks are affordability, household movement, and water exposure. The price-to-income ratio is 4.98, net migration was -77 households, and inland flood is the dominant hazard. That combination favors selective property-level review over broad market exposure, with close attention to insurability, renter budgets, and deal-specific pricing.
Frequently Asked Investor Questions
How does asking rent compare with the published FMR?
Do market conditions offer buyers any negotiating room?
Is household migration positive or negative?
Investor Quick Takeaways
Computed from the current Zillow rent and home-value medians.
Zillow ZORI rent growth trend over trailing 12 months.
Originated investment purchase share (CFPB HMDA).
Annualized loss ratio evaluated for flood & hurricane risk.
Test the market, then test the deal
Keep Farmington as the starting point or move into a more specific property and rent check.
The current market in eight signals
Fast-moving Redfin conditions sit beside the slower fundamentals so a buyer can separate today's negotiating climate from the long-run investment case.
What each component measures
Weights are published, not hidden, and the arithmetic is shown. Five components, each measured as a national percentile across all tracked metros.
| Signal | Score | Weight | Points |
|---|---|---|---|
| Job growth | 91 | 30% | 27.30 |
| Rent trend | 76 | 25% | 19.00 |
| Affordability | 32 | 15% | 4.80 |
| Supply pressure | 96 | 15% | 14.40 |
| Climate risk | 46 | 15% | 6.90 |
| Published score | 72 | ||
CES employment grew 1.5% year over year -> the labor signal supports current tenant demand, although its durability is not established.
Median asking rent rose 5.23% to $1,286 -> recent rent performance strengthens current income potential but should not be assumed to repeat.
Rent absorbs 27.63% of median income and home value equals 4.98 times income -> affordability requires careful household-level underwriting.
A permit total of 76 and 2.3 months of supply -> both the construction pipeline and available resale inventory appear limited.
The annual climate loss ratio is 0.1488%, with inland flood dominant -> site-specific flood and insurance review is necessary.
What this market costs and what it earns
Every derived ratio below recomputes from the same source record used by the article and score.
What is being built, and for whom
Permits are the 12-to-24 month early warning. The total matters less than the mix: apartments compete with a rental the day they open.
Demand, and the competition for it
Tax filings say how many households moved and what they earn; mortgage disclosures say how many local purchases went to someone who will not live there. Moves between counties inside this metro are netted out of both flow figures.
What would make this a bad buy
Generated from the same figures with the instruction to argue against the score, and published unedited. A page that only agrees with itself is an advertisement.
Three ways the case breaks
- Home value is high relative to local income at $278,041 and 4.98 times median household income.
- Tax filings show 1,966 households moved in and 2,043 moved out, leaving net migration of -77.
- Inland flood is the dominant hazard, and the annual climate loss ratio is 0.1488%, so realized property losses could reduce returns.
Move from the metro average to local evidence
County pages carry tax, migration, listing and hazard records. City pages appear only where direct city price, rent and Census evidence pass the publication gate.
No city in this metro has passed the current city evidence gate.
Metros that behave like Farmington
Nearest neighbours on price level, income, yield and job growth — not on geography. Every market page gets a different peer set, which is the point.
| Metro | Score | Price | Rent | Yield | Job Growth |
|---|---|---|---|---|---|
| Farmington, NM (Target) | 72 | $278k | $1,286 | 5.5% | ▲ 1.5% |
| Richmond, KY | 59 | $267k | $1,153 | 5.2% | ▲ 1.1% |
| Las Cruces, NM | 48 | $289k | $1,449 | 6.0% | ▲ 1.9% |
| Athens, TX | 53 | $273k | $1,292 | 5.7% | ▲ 1.8% |
| Aberdeen, WA | 56 | $327k | $1,559 | 5.7% | ▲ 1.8% |
Where every figure came from
“Checked nightly” means every source is re-pulled and re-verified each night. It does not mean every source moves nightly — the release column tells you how fresh each number can possibly be.
| Dataset Source | Method | Release Period | Pulled Date |
|---|---|---|---|
| Census ACS 5-year — household income | direct | ACS 2024 5-year | 2026-07-26 |
| Census ACS 5-year — population | direct | ACS 2024 5-year | 2026-07-26 |
| BLS CES — payroll employment | direct | CES SM current | 2026-07-26 |
| BLS LAUS — resident employment | direct | LAUS current | 2026-07-26 |
| BLS QCEW — county employment and wages | direct | annual county employment and wages 2025 vs 2024 | 2026-07-31 |
| OMB/BLS delineation — metro geography | direct | OMB July 2023 delineation | 2026-07-30 |
| Census Building Permits Survey — permitted units | direct | BPS through 2026 | 2026-07-26 |
| Census ACS 5-year — city population, households and housing | direct | ACS 2024 5-year | 2026-07-29 |
| Census ACS 5-year — county housing value, tenure and stock | direct | ACS 2024 5-year | 2026-07-30 |
| Census ACS 5-year — cities and communities | direct | ACS 2024 5-year | 2026-07-30 |
| FEMA National Risk Index — hazard loss ratios | modelled | NRI counties (FEMA ArcGIS) | 2026-07-26 |
| FHFA House Price Index — annual county appreciation | direct | annual county HPI 2025 | 2026-07-28 |
| HMDA / CFPB — purchases by occupancy type | direct | HMDA 2024 purchase originations | 2026-07-26 |
| HUD Fair Market Rents — Section 8 standard | direct | FY2026 FMR | 2026-07-26 |
| HUD USPS crosswalk and Small Area FMRs — ZIP rent fallback | direct | ZIP-CBSA 2025Q4 + SAFMR FY2026 | 2026-07-26 |
| IRS SOI — county migration and mover income | direct | SOI migration 2022-2023 | 2026-07-26 |
| Freddie Mac PMMS — mortgage rates | direct | week of 2026-07-23 | 2026-07-27 |
| Census ACS 5-year — effective property tax | direct | ACS 2024 5-year | 2026-07-27 |
| Realtor.com Economic Research — county listing inventory | direct | county inventory 2026-06 | 2026-07-28 |
| Redfin Data Center — inventory, days on market, and price cuts | direct | metro tracker through 2026-05-01 | 2026-07-26 |
| Zillow ZHVI and ZORI — county values and rents | direct | county ZHVI/ZORI 2026-06 | 2026-07-26 |
| Zillow ZHVI — metro home values | direct | Metro_zhvi_uc_sfrcondo_tier_0.33_0.67_sm_sa_month.csv | 2026-07-26 |
| Zillow ZHVI — city home values | direct | zillow_zhvi_city.csv | 2026-07-29 |
| Zillow ZORI — metro market rents | direct | Metro_zori_uc_sfrcondomfr_sm_sa_month.csv | 2026-07-26 |
| Zillow ZORI — city market rents | direct | zillow_zori_city.csv | 2026-07-29 |
| Zillow ZORI — ZIP market rents | direct | ZORI ZIP 2026-06 | 2026-07-26 |