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Otero County, NM

RANK #611 / 1001 NAT  ·  #8 / 11 NM  ·  POP 68,816

1YR FORECAST: -0.7%

5YR OUTLOOK: +27%

#8 Best Rental Yield
Otero County's housing market is projected to grow -0.7% over the next year, below the national average.

[01] Why Otero County?

Otero County, New Mexico, is perhaps best known for White Sands National Park, a striking landscape of gypsum dunes that draws visitors for hiking, sand sledding, and stargazing. Located in southern New Mexico, the county seat, Alamogordo, is approximately 85 miles from El Paso, Texas. The area offers a blend of desert and mountain environments, with the Sacramento Mountains and Lincoln National Forest providing opportunities for hiking, camping, and skiing at Ski Cloudcroft, the southernmost ski resort in the country. Life in Otero County is shaped by its natural amenities and military presence. Holloman Air Force Base and White Sands Missile Range are significant employers, contributing to a community with a notable number of military retirees. The economy is driven by government employment, tourism, retail trade, and construction. Alamogordo Public Schools serve over 5,000 students across multiple campuses, including those from Holloman Air Force Base. The county has recently explored regional economic development initiatives with neighboring Lincoln County to attract businesses and boost tourism.

MARKET PROFILE

Idiosyncratic Markets

Otero County's data profile doesn't fit any single market profile cleanly — its housing, labor, and demographic signals pull in different directions (home prices -2.7% YoY, population +0.8%, wages +3.7%). About 414 U.S. counties show this kind of mixed-signal pattern.

See all 414 Idiosyncratic Markets counties →

[02] Market Snapshot

Housing Ratio
12.3x

Overvalued relative to economy

Home Prices
-2.7%

Prices declining

Climate & Terrain
4.0

Favorable climate & terrain

Price/Rent
9x

Strong rental yield

Housing looks overvalued at 12.3x — home prices are high relative to local economic output. Climate and geography support a structural premium. The typical U.S. county is 4–6x.

[03] Top Employers

  1. 1
    Holloman Air Force Base Military
    2,500+
  2. 2
    Otero County Government Government
  3. 3
    Gerald Champion Regional Medical Center Healthcare
    1,000+
  4. 4
    Alamogordo Public Schools Education
  5. 5
    The Lodge in Cloudcroft / Inn of the Mountain Gods Resort and Casino Hospitality
  6. 6
    New Mexico State University-Alamogordo Education
  7. 7
    Walmart Retail

Estimated local headcount ranges. Larger employers shown as floor + "+"; smaller employers show exact counts where reported.

[04] Home Value Growth vs National

Otero County U.S. National

Bars show trailing 12-month growth. The dashed Forecast bars are the model's next-12-month projection; the whisker marks the ±1% range (cooling–accelerating).

The Numbers

DEMOGRAPHICS
Population
68,816
+0.85% YoY
Median Household Income
$55,876
Median Home Value
$162,700
-2.68% 12mo
Median Rent
$962
Average Annual Pay
$51,858
+3.7% YoY
Employment
17,523
0.0% YoY
Income-to-Home-Value
0.3434
More affordable than average
Migration Inflow
1.49%
of pop. from another state
Bachelor's Degree+
22.7%
of residents (national avg: 33%)

Market Activity

REAL ESTATE
Median Sale Price
$251,000
Days on Market
60
Slower market
Months of Supply
5.3
Buyer's market
Sale-to-List Ratio
100.0%
Near asking price
Listings w/ Price Drops
19.7%
Building Permits (2025)
3
Single-Family Permits
3

Source: Redfin · Census BPS — Browse sales on Redfin →

[05] Crime & Safety

C
SAFETY
GRADE
Homicide Rate
6.8
per 100K · nat avg 6.3
Firearm Fatalities
25.0
per 100K · nat avg 14.8
Injury Deaths
107.8
per 100K · nat avg 76.3
vs National Average
Near national avg
based on homicide rate

Source: CDC/NCHS vital statistics via County Health Rankings (2020–2022 avg). Rates per 100,000 population. Grade based on homicide rate relative to national average (~6.3). Learn more →

[06] Score Breakdown

Population Growth +0.8% 61 percentile
Income Growth +6.0% 95 percentile
Vacancy Rate 1.7% 12 percentile
Home Price Change -2.7% 8 percentile
Rent Growth +0.3% 13 percentile
Price/Rent 9x 99 percentile

Bars show percentile rank among all 1001 counties.

[07] Frequently Asked Questions

Is Otero County, NM a good place to move to?

At 38/100, Otero County faces headwinds that place it in the lower third of the 1001 counties we track. Median income of $55,876 suggests the local economy is struggling to keep pace with national trends.

Is Otero County affordable?

Housing in Otero County is roughly in line with national affordability norms. The median home costs $162,700 and the income-to-home-value ratio sits at 0.34, with rents averaging $962/month. Not a bargain, but not a stretch for most local earners either.

Is Otero County growing or shrinking?

Otero County's population is growing — up +0.8% YoY — while the job market is roughly flat (employment change of 0.0%). Home values shifted -2.7% over the past year. In-migration is outpacing local hiring, which often points to remote workers or retirees driving the headcount.

Are many people relocating to Otero County?

Not particularly — 1.49% of Otero County's population moved in from another state, which is below the national average. Most residents are long-term locals rather than recent transplants.

[08] Similar Counties by Size & Score

Valencia County, NM 48 Bernalillo County, NM 49 Sandoval County, NM 17 Doña Ana County, NM 63 Santa Fe County, NM 13 McKinley County, NM 7 Belknap County, NH 38 Madison County, KY 38