Location: Albuquerque, NM | Metro: Albuquerque, NM MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $336,296 | 0.4% | F |
| 3BR | $1,860 | $357,382 | 0.52% | F |
| 4BR | $2,190 | $466,224 | 0.47% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 87004, located in Bernalillo, NM, and part of the Sandoval County County, Albuquerque, NM MSA metro, reveals several key points. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1030, which is higher than the average market rent reported by the Census ACS at $949. This means that voucher tenants would typically generate positive cash flow at the FMR rate, indicating that landlords can expect to see a margin of profit when renting to Section 8 tenants without needing to focus solely on premium units.
To further understand the investment potential, consider the median home value in the area, which stands at $348,566. Using the HUD FMR of $1030, we can calculate a rent-to-price ratio of approximately 0.30%, suggesting that rental income alone would not cover the mortgage payments on an average-priced home in this ZIP code. However, the positive cash flow from Section 8 vouchers compensates for this gap, making rental properties more attractive compared to owning a home.
The dynamics between renting and buying are also important. With a median Days on Market (DOM) of N/A and a price-cut share of 0.4%, it indicates that the housing market in ZIP 87004 is relatively stable, with minimal need for sellers to reduce their asking prices. This stability is beneficial for both landlords and small-portfolio investors, as it reduces the risk of property values declining significantly over time.
In conclusion, the strongest investor angle in this market is cash flow, given the favorable difference between the HUD FMR and the actual market rent. Landlords and small-portfolio investors can expect consistent returns from Section 8 tenants without the need for premium units, making this a viable and profitable investment opportunity.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.