Three-bedroom and four-bedroom properties anchor the city’s most investable product segments, both in terms of revenue and scale. Three-bedroom listings (376 active) average $29,092 in annual revenue, with a robust $200 ADR and 56% occupancy. Four-bedroom homes (126 listings) push higher, averaging $38,973 annually at a $280 ADR, though occupancy dips to 51%. For investors seeking higher nightly rates, the five-bedroom segment (31 listings) delivers a striking $47,976 average annual revenue and a $402 ADR, but with further reduced occupancy at 49%. These larger homes trade yield for ticket size and are best suited for investors with capital and operational bandwidth to manage lower utilization. For tailored acquisition strategies in these segments, connect with a Chalet agent who understands the local trade-offs.
Geographically, several zip codes stand out for their blend of revenue and yield. The 87114 cluster (93 listings) leads on median annual revenue at $31,706, paired with a $179 ADR, 57% occupancy, and an 8.6% yield on a $367,199 median home value. The 87110 area (95 listings) is close behind, posting $30,269 in median revenue, $151 ADR, 61% occupancy, and a notably high 9.7% yield on $311,171 homes. Meanwhile, 87120 (62 listings) offers $30,351 median revenue, $159 ADR, and 8.7% yield, balancing price and performance. These clusters offer a clear playbook for investors targeting above-median returns without chasing thin-sample outliers. For zip-level targeting and underwriting, leverage a Chalet agent with on-the-ground insights.
At scale, Albuquerque rewards disciplined, full-time operators who can navigate moderate seasonality and a booking window that averages 36 days (median 17). Demand is overwhelmingly domestic, with less than 1.5% of guests international; the largest feeder markets are regional—El Paso, Denver, Las Cruces, Austin, and Phoenix—underscoring Albuquerque’s status as a drive-market destination. The average length of stay is 5.5 nights, favoring operators who can capture mid-length bookings. With a superhost share of 57% and a 4.93 average star rating, quality and professionalization are increasingly table stakes. For a granular underwriting scenario, use the Chalet ROI calculator to model cash flows and stress-test assumptions.
Risks are concentrated around regulatory stability and uneven enforcement. The city requires a $120 STR permit and a $35 annual business license, but compliance is inconsistent—over half of STRs operate unregistered, creating potential for future crackdowns. Home values have risen modestly year-over-year (+1.2%, Chalet data), but investors should be mindful of the November trough, when occupancy drops to 49%. While no citywide cap or moratorium is in place, regulatory stability is rated moderate, and enforcement remains complaint-driven. For up-to-date legal context, review Albuquerque STR regulations before deploying capital.
