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DSCR Loans in New Mexico

Rental property financing built on rental income.

A DSCR loan in New Mexico is an investment property mortgage that qualifies on the rent the property earns, not your personal income. HUD puts the 2 bedroom Fair Market Rent for the Albuquerque metro at $1,384 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in New Mexico up to $5 million.

Run my New Mexico dealCheck your DSCR

Facts checked November 1, 2026. Not a commitment to lend.

Facts checked November 1, 2026

The New Mexico numbers that shape a DSCR deal

Every value links to its primary source. Details for each follow further down the page.

New Mexico factValueSource
Security instrumentMortgages and deeds of trust are both usedNMSA 1978 §§ 48-10-3, 48-10-10
ForeclosureMortgages and deeds of trust are both usedNMSA 1978 §§ 48-10-3, 48-10-10
Security depositFor a lease under one year the deposit cannot exceed one month's rentNMSA 1978 § 47-8-18
Notice for unpaid rent3 days after written notice of nonpaymentNMSA 1978 § 47-8-33(D)
Rent controlCounties and municipalities are prohibited from enacting rent controlNMSA 1978 § 47-8A-1
Median listing price$399,475 in September 2026 ($400,000 in September 2025)Realtor.com via FRED
HUD 2 bedroom Fair Market Rent$1,384, The Albuquerque metroHUD User
The definition

What is a DSCR loan, and how does it work in New Mexico?

The ratio is rent over the full payment, PITIA. At the HUD 2 bedroom Fair Market Rent for the Albuquerque metro of $1,384, a 1.00 ratio supports PITIA up to $1,384 and a 0.50 ratio up to $2,768.

Full walk through: how DSCR is calculated.

Where PMG is different

Where PMG is different in New Mexico

What PMG can place for a New Mexico rental, in short.

  • First time buyers: allowed, no VOR
  • Cash out: no seasoning
  • Reserves: none under $1M, 75% LTV
  • Assets: no sourcing
  • Gift funds: 100%
  • ADUs: multiple
  • Foreign nationals: 70% / 60% LTV
  • DSCR: from 0.50
  • Interest only: 70% / 65% LTV

Loan amount

Up to $5M

Credit

660 and up

Down

20 to 25%

Vesting

LLC ok

Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend. Compare with typical DSCR programs.

New Mexico rental market

New Mexico rental numbers: rent and price

Before you run a New Mexico deal, anchor the rent to public benchmarks instead of a listing agent's guess.

HUD Fair Market Rent, 2 bedroom

$1,384

The Albuquerque metro (FY2027)

HUD User

HUD Fair Market Rent, 2 bedroom

$1,073

The Las Cruces metro (FY2027)

HUD User

Median listing price

$399,475

September 2026, down 0.1% from $400,000 in September 2025

Realtor.com via FRED

Quick math (computed from the figures above): At the New Mexico median listing price of $399,475, 25% down is $99,869 and the loan is $299,606. A year of rent at the Fair Market Rent for the Albuquerque metro ($1,384) is $16,608, or 4.2% of that price. A year of rent at the Fair Market Rent for the Las Cruces metro ($1,073) is $12,876, or 3.2% of that price.

Fair Market Rent is a HUD benchmark, not an appraisal.

Calculator

Check your New Mexico DSCR in seconds

The rent field starts at the HUD 2 bedroom Fair Market Rent for the Albuquerque metro. HUD also lists the Albuquerque metro at $1,384 and the Las Cruces metro at $1,073. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median New Mexico listing was $399,475 in September 2026.

New Mexico DSCR Calculator

See how a rental's income stacks up against its full monthly payment. Your numbers stay in your browser.

Income
Example: HUD 2 bedroom Fair Market Rent for the Albuquerque metro. Replace it with your rent.
Loan
Expenses
Leave blank if there is no HOA.

Your DSCR results

Enter rent, price and your quoted rate to see your DSCR.

Formula used

Loan amount (L) = Price × (100 minus Down %) ÷ 100

P&I (30 year fixed) = L × r × (1 + r)^360 ÷ ((1 + r)^360 minus 1), where r = annual rate ÷ 100 ÷ 12

P&I (40 year interest only) = L × r

PITIA = P&I + Tax ÷ 12 + Insurance ÷ 12 + HOA

DSCR = Monthly rent ÷ PITIA

Rent needed for a target DSCR = Target × PITIA

Talk through your numbers with us

Estimates only. Not a loan offer. Rates and terms vary by lender, property and borrower. Company NMLS #2700076. Example values are illustrations, not a quote.

The math

DSCR worked examples for New Mexico

Hypothetical PITIA of $1,775 (P&I $1,400, taxes $250, insurance $125), real New Mexico rents. Not a quote or a rate.

The Albuquerque metro

HUD FY2027 2 bedroom Fair Market Rent (source)
$1,384
Hypothetical PITIA
$1,775

0.78DSCR

$1,384 / $1,775 = 0.78: fits programs down to 0.50.

The Las Cruces metro

HUD FY2027 2 bedroom Fair Market Rent (source)
$1,073
Hypothetical PITIA
$1,775

0.60DSCR

$1,073 / $1,775 = 0.60: fits programs down to 0.50.

Talk to us

Have a New Mexico rental in mind? Run it with us.

Share the deal and we will run the ratio, compare lenders and lay out your options in plain numbers.

Investors from any state can buy in New Mexico.

See If My New Mexico Deal Qualifies

No commitment  ·  Under 2 minutes

Your information is never sold or shared. By submitting you authorize Pillar Mortgage Group LLC to contact you by phone, text, or email. Equal Housing Lender.

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Top markets

Where New Mexico investors are buying

The largest New Mexico rental markets, and what each city requires of short term rental hosts.

Albuquerque

$1,384

HUD 2 bedroom Fair Market Rent, the Albuquerque metro (HUD)

Las Cruces

$1,073

HUD 2 bedroom Fair Market Rent, the Las Cruces metro (HUD)

Short term rental rules in Albuquerque

  • Albuquerque: STR permit required for each STR property (Ordinance O-20-30, effective April 23, 2021). Permit fee $120 first year, $90 annually after. Overnight occupancy 2 adults per bedroom. Good Neighbor Agreement posted. Proof of STR insurance. Lodgers tax and hospitality fee remitted through the city portal. No primary residence rule or cap stated on the city page. (cabq.gov)

City rules change. Confirm with the city and your HOA before you buy, and ask us how your lender counts short term rental income.

Landlord and tenant law

Leases, deposits and notices in New Mexico

These New Mexico statutes set the ground rules for every lease you sign on a financed rental.

TopicThe ruleCitation
Security depositFor a lease under one year the deposit cannot exceed one month's rent. For an annual lease, if the deposit exceeds one month's rent the owner must pay annual interest equal to the passbook rate. Itemized deductions and balance due within 30 days of termination or departure, whichever is later.NMSA 1978 § 47-8-18
Pay or quit3 days after written notice of nonpaymentNMSA 1978 § 47-8-33(D)
Month to month notice30 days written notice before the periodic rental dateNMSA 1978 § 47-8-37
Rent controlCounties and municipalities are prohibited from enacting rent control. Repeal bills (2023 SB 99, 2025 SB 216) did not pass. SB 216 died per nmlegis.gov.NMSA 1978 § 47-8A-1

Not legal advice.

Property taxes

How New Mexico taxes rental property

Taxes go straight into PITIA, so they move your ratio. Budget for the investor rate, since rentals usually do not get homestead treatment.

  • Assessment: New Mexico residential property value increases are limited to the higher of 3 percent over the prior year or 6.1 percent over two years. The limit does not apply in the tax year after a change of ownership, to new improvements, or after a change of use or zoning, so a purchased rental is revalued at current and correct value the year after sale. NMSA 1978 § 7-36-21.2 (law.justia.com)
  • Investor note: The 3% valuation limit statute applies to residential property and its text does not condition the limit on owner occupancy, so a rental held without a change of ownership appears covered. It resets the year after a sale. (law.justia.com)
  • Taxable value one third: Taxable value is one third of value: 'The tax ratio is thirty-three and one-third percent.' (law.justia.com)
Closing and foreclosure

New Mexico closing and foreclosure basics for investors

Who closes your loan, which security instrument you sign and what the state charges to record it.

  • Security instrument: Mortgages and deeds of trust are both used. The Deed of Trust Act confers a trustee power of sale (sale no sooner than 90 days after recording notice of sale) and the beneficiary may instead foreclose as a mortgage. A 2006 amendment removed the prior exclusion of one to four family dwellings. NMSA 1978 §§ 48-10-3, 48-10-10 (law.justia.com)
  • Foreclosure: Judicial for mortgages; nonjudicial trustee sale available for deeds of trust under the Deed of Trust Act (law.justia.com)
Local angle

What makes New Mexico different for rental investors

  • Albuquerque anchors the state's rental demand with the University of New Mexico, Kirtland Air Force Base and Sandia National Laboratories, while Las Cruces is home to New Mexico State University. Santa Fe is a tourism and second home market where short term rental rules matter. A 3 percent residential valuation limit means a newly purchased rental can carry a higher assessed value than long held neighbors. (law.justia.com)
Before you offer

New Mexico investor checklist

Run through these New Mexico rules before you write an offer on a rental.

  • Security deposit: For a lease under one year the deposit cannot exceed one month's rent (NMSA 1978 § 47-8-18)
  • Unpaid rent notice: 3 days after written notice of nonpayment (NMSA 1978 § 47-8-33(D))
  • Ending a month to month lease: 30 days written notice before the periodic rental date (NMSA 1978 § 47-8-37)
  • Rent control: Counties and municipalities are prohibited from enacting rent control (NMSA 1978 § 47-8A-1)
  • Tax basis: New Mexico residential property value increases are limited to the higher of 3 percent over the prior year or 6.1 percent over two years (NMSA 1978 § 7-36-21.2)
  • Security instrument: Mortgages and deeds of trust are both used (NMSA 1978 §§ 48-10-3, 48-10-10)
  • Short term rental, Albuquerque: STR permit required for each STR property (Ordinance O-20-30, effective April 23, 2021) (cabq.gov)
Step by step

From offer to closing in New Mexico

  1. Send the New Mexico deal
  2. We run the DSCR
  3. We shop lenders
  4. Appraisal confirms rent
  5. Close in your name or LLC

Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.

35 states and counting

DSCR loans across the country

New Mexico is highlighted. We also lend DSCR in Arizona, Colorado, Oklahoma and Texas next door, and in 30 more states. Tap a gold state to open its guide.

DSCR loans in AlabamaDSCR loans in AlaskaDSCR loans in ArizonaDSCR loans in ArkansasDSCR loans in ColoradoDSCR loans in ConnecticutDSCR loans in DelawareDSCR loans in GeorgiaDSCR loans in HawaiiDSCR loans in IndianaDSCR loans in IowaDSCR loans in KansasDSCR loans in KentuckyDSCR loans in LouisianaDSCR loans in MaineDSCR loans in MarylandDSCR loans in MassachusettsDSCR loans in MichiganDSCR loans in MississippiDSCR loans in MissouriDSCR loans in MontanaDSCR loans in New HampshireDSCR loans in New Mexico (this page)DSCR loans in North CarolinaDSCR loans in OhioDSCR loans in OklahomaDSCR loans in PennsylvaniaDSCR loans in Rhode IslandDSCR loans in South CarolinaDSCR loans in TennesseeDSCR loans in TexasDSCR loans in WashingtonDSCR loans in West VirginiaDSCR loans in WisconsinDSCR loans in Wyoming
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Map geometry: US Census Bureau cartographic boundary files.

FAQ

New Mexico DSCR loan questions

Straight answers for investors buying or refinancing rentals in New Mexico.

PMG guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.

Book a free call

Does Pillar Mortgage Group offer DSCR loans in New Mexico?

Yes. Purchases, rate and term and cash out refinances on New Mexico rentals, up to $5 million, in your name or an LLC. That includes Albuquerque, Las Cruces, Santa Fe and Rio Rancho.

Which rent counts on a New Mexico DSCR loan?

The lease or the appraiser's market rent. As a benchmark, HUD puts the 2 bedroom Fair Market Rent for the Albuquerque metro at $1,384 a month.

How much security deposit can a New Mexico landlord take?

For a lease under one year the deposit cannot exceed one month's rent. For an annual lease, if the deposit exceeds one month's rent the owner must pay annual interest equal to the passbook rate. Itemized deductions and balance due within 30 days of termination or departure, whichever is later. (NMSA 1978 § 47-8-18)

How much notice does a New Mexico landlord give for unpaid rent?

3 days after written notice of nonpayment. (NMSA 1978 § 47-8-33(D))

What notice ends a New Mexico month to month tenancy?

30 days written notice before the periodic rental date. (NMSA 1978 § 47-8-37)

How does New Mexico assess property tax on a rental?

New Mexico residential property value increases are limited to the higher of 3 percent over the prior year or 6.1 percent over two years. The limit does not apply in the tax year after a change of ownership, to new improvements, or after a change of use or zoning, so a purchased rental is revalued at current and correct value the year after sale. (NMSA 1978 § 7-36-21.2)

Does New Mexico have rent control?

Counties and municipalities are prohibited from enacting rent control. Repeal bills (2023 SB 99, 2025 SB 216) did not pass. SB 216 died per nmlegis.gov. (NMSA 1978 § 47-8A-1)

How does foreclosure work in New Mexico?

New Mexico closes on a mortgage. Mortgages and deeds of trust are both used. The Deed of Trust Act confers a trustee power of sale (sale no sooner than 90 days after recording notice of sale) and the beneficiary may instead foreclose as a mortgage. A 2006 amendment removed the prior exclusion of one to four family dwellings. (NMSA 1978 §§ 48-10-3, 48-10-10)

Can I use a DSCR loan for a short term rental in Albuquerque?

Often, yes, with stricter income documentation. Local rule: STR permit required for each STR property (Ordinance O-20-30, effective April 23, 2021). Permit fee $120 first year, $90 annually after. Overnight occupancy 2 adults per bedroom. Good Neighbor Agreement posted. Proof of STR insurance. Lodgers tax and hospitality fee remitted through the city portal. No primary residence rule or cap stated on the city page.
Nearby states

DSCR loans in nearby states

Investing across state lines? We lend DSCR in these neighbors of New Mexico too.

Sources and review dates

Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.

  1. HUD FY2027 Fair Market Rent, Albuquerque, NM MSA: https://www.huduser.gov/datasets/fmr/fmr2027/summary?counties=3500199999&reporttype=county&states=35&year=2027&sa_override=1
  2. NMSA 48-10-10: https://law.justia.com/codes/new-mexico/chapter-48/article-10/section-48-10-10 (checked 2026-11-01)
  3. NMSA 47-8-18: https://law.justia.com/codes/new-mexico/chapter-47/article-8/section-47-8-18/ (checked 2026-11-01)
  4. NM Courts Landlord Tenant Resource Guide: https://nmcourts.gov/wp-content/uploads/sites/34/2023/11/Landlord-Tenant_Resource-Guide.pdf (checked 2026-11-01)
  5. SB 99 (2023) FIR: https://www.nmlegis.gov/Sessions/23%20Regular/firs/SB0099.PDF (checked 2026-11-01)
  6. FRED MEDLISPRINM: https://fred.stlouisfed.org/series/MEDLISPRINM (checked 2026-11-01)
  7. HUD FY2027 Fair Market Rent, Las Cruces, NM MSA: https://www.huduser.gov/datasets/fmr/fmr2027/summary?counties=3501399999&reporttype=county&states=35&year=2027&sa_override=1
  8. Albuquerque STR: https://www.cabq.gov/main-navigation/businesses/short-term-rentals (checked 2026-11-01)
  9. NM Courts Form 4-903: https://thirddistrict.nmcourts.gov/wp-content/uploads/sites/22/2023/11/4-903-Thirty-Day-Notice-to-Terminal-Rental-Agreement-Fillable.pdf (checked 2026-11-01)
  10. NMSA 7-36-21.2: https://law.justia.com/codes/new-mexico/chapter-7/article-36/section-7-36-21-2/ (checked 2026-11-01)
  11. law.justia.com: https://law.justia.com/codes/new-mexico/chapter-7/article-37/section-7-37-3/
  12. NMSA 48-10-3: https://law.justia.com/codes/new-mexico/chapter-48/article-10/section-48-10-3/ (checked 2026-11-01)
New Mexico investors

Let the rent do the qualifying.

Send the New Mexico property and rent. We run the ratio and lay out terms before you offer.

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Run My New Mexico DSCR Numbers

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Your information is never sold or shared. By submitting you authorize Pillar Mortgage Group LLC to contact you by phone, text, or email. Equal Housing Lender.

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Got it.

We will reach out shortly to run your numbers.

Pillar Mortgage Group, LLC is an Equal Housing Lender, doing business in accordance with the Fair Housing Act and Equal Credit Opportunity Act. Not a commitment to lend.
Company NMLS# 2700076  |  Arizona License MB-2009671  |  View NMLS Consumer Access