Rent Trends in Hobbs, New Mexico 2016

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Rent Trends in Hobbs, New Mexico 2016

Yousif Abudra
Real Estate Investor / Syndicator · San Ramon, CA · Member since 2015 · 93 posts · 91 votes

Does anyone have insight to the rental trends in Hobbs, New Mexico?  Or possibly Carlsbad, New Mexico / Midland, Texas / Odessa, Texas?

Given the weakness of the Permian, I would expect to see rents decreasing and vacancies climbing, but would like to get input from folks on the ground in those markets.

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Marc C.
Buy-and-Hold Rental Investor · Santa Fe, NM · Member since 2015 · 438 posts · 352 votes
9y

You might try to compare HUD Fair Market Rents for those counties in SE NM for 2014, 2015, 2016, and 2017 and see if they dropped.

https://www.huduser.gov/portal/datasets/fmr.html

If they are truly "fair market", they should have fallen in 2015 from 2014, and again in 2016 from 2015. The 2017 FMR's were recently posted.

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  • Bart H.
    Dallas, TX · Member since 2016 · 1k+ posts · 745 votes
    9y
    I am not in that market, and it may have leveled off a little but I think the Permian is the one place in this country where oil is profitable at $50/barrel. I believe it is doing a lot better than say the Bakkan.
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  • Marc C.
    Buy-and-Hold Rental Investor · Santa Fe, NM · Member since 2015 · 438 posts · 352 votes
    9y

    You might try to compare HUD Fair Market Rents for those counties in SE NM for 2014, 2015, 2016, and 2017 and see if they dropped.

    https://www.huduser.gov/portal/datasets/fmr.html

    If they are truly "fair market", they should have fallen in 2015 from 2014, and again in 2016 from 2015. The 2017 FMR's were recently posted.

    1Reply
  • Curtis J.
    Investor · Lovington, NM · Member since 2016 · 46 posts · 25 votes
    9y

    @Yousif Abudra

    Rents went down around 10% or so.  But they seem to be coming back up.  Vacancies haven't been hard to fill at all.  

    PM me if you have any questions on the local area.  

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  • Yousif Abudra
    OP
    Real Estate Investor / Syndicator · San Ramon, CA · Member since 2015 · 93 posts · 91 votes
    9y

    @Marc C. & @Curtis J.

    Thanks for the insights; looks like rental rates have fallen but are stabilizing and in some cases marginally improving.  Will be interesting to see how to Permian growth will impact these going forward.

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