Small Landlords, Big Impact: How Individual Investors Shape the Rental Market

Across the U.S., small landlords—defined as those owning fewer than 11 properties—are the backbone of rental housing. They account for over 90% of investor-owned homes, a figure that challenges the narrative of institutional dominance. These everyday investors, often operating as individuals or small partnerships, are quietly shaping housing access, affordability, and community stability.

Often referred to as “mom and pop” investors, these landlords typically manage properties in their own neighborhoods, offering a personal touch that large corporations can’t replicate. They’re more likely to know their tenants, respond quickly to maintenance issues, and provide flexible leasing terms. Many entered the market to build retirement income, support family wealth, or contribute to local housing needs—making them not just property owners, but community stakeholders. Their presence helps preserve housing diversity, especially in smaller towns and mid-sized cities where institutional investment is limited.

National Trends: The Power of the Small Investor

States like Alaska, Hawaii, Maine, and Montana lead in investor ownership rates, but the story is similar nationwide: small landlords are the primary drivers of rental supply. They’re more likely to:

• Live near their properties

• Offer flexible leasing terms

• Maintain homes with personal care

• Respond quickly to tenant needs

This localized approach fosters neighborhood stability and supports diverse housing needs—from single-family rentals to small multifamily units.

New Mexico: A Rising Star for Individual Investors

New Mexico mirrors this national trend with its affordable entry points, growing population, and steady rental demand. Cities like Las Cruces, Silver City, and Deming offer compelling opportunities for small-scale investment:

Las Cruces

• Average rent: ~$1,500

• Market status: "Warm", rent is Las Cruces is 25% lower than the national average

• Appeal: Retirement-friendly, sunny climate, strong demand for long-term rentals

Las Cruces remains a stronghold for small landlords, with average rents at $1,500—25% below the national average. With 296 listings, mostly between $595 and $2,000, it offers accessible options for individual investors. Rents rose slightly month-over-month but are still down $100 from last year, signaling affordability and long-term stability in a “warm” market.

Silver City

• Average rent: ~$1,450 (up $325 year-over-year)

• Median rent: ~$1,380

• Inventory: Only 19 rentals available

• Market status: “Cool,” with steady demand and tight supply

Silver City’s rising rents and limited inventory make it a prime location for new investors. With a mix of retirees, students, and professionals, landlords can meet diverse tenant needs while building equity in a stable market.

Deming

• Average rent: ~$675 (up $25 year-over-year)

• Inventory: 4 rentals currently available

• Market status: “Warm,” with increasing demand

• Affordability: Rent is ~66% below the national average

Deming’s affordability, combined with its low inventory and rising demand, makes it a compelling market for small landlords. With limited inventory and rising demand, Deming presents a strong case for small landlords looking to enter or expand in southern New Mexico.

Data source: Zillow.com/rental-manager/market-trends - November 1, 2025

What This Means for REALTORS® and Housing Advocates

Understanding the role of small landlords helps REALTORS®:

• Guide new investors with confidence

• Support housing diversity and affordability

• Advocate for policies that protect both tenants and property owners

In New Mexico and beyond, small landlords aren’t just filling units—they’re shaping communities.

Whether advising first-time investors or seasoned property owners, REALTORS® play a vital role in building sustainable, locally driven housing solutions. Share this insight with your clients, colleagues, and community leaders to elevate the conversation around rental housing and investment.