Location: Rio Arriba County, NM | Metro: Albuquerque, NM MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
U.S. Census Bureau data (2024)
The rent math in ZIP 87013 does not favor landlords. The Fair Market Rent (FMR) set at $1,030 for FY 2024 is significantly lower than the market rent of $1,255 according to Census ACS data. This discrepancy means that landlords participating in Section 8 might struggle to cover their costs, including mortgage payments, property taxes, insurance, and maintenance, based solely on the FMR.
Acquisition in ZIP 87013 is moderately affordable. The median home value stands at $238,614. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts makes it challenging to assess how competitive the housing market is. Landlords should proceed cautiously, considering the affordability of properties against the lower FMR.
Tenant demand in ZIP 87013 is relatively low. With a total population of 5,251, only 13.6% are renters. This indicates that the pool of potential tenants is limited, which could affect occupancy rates and make it harder to find eligible Section 8 participants.
Verdict: ZIP 87013 presents a challenging investment environment for landlords interested in Section 8 properties. The rent math is unfavorable due to the significant gap between FMR and market rent, potentially leading to financial strain. Acquisition is affordable, but the limited data on market dynamics introduces uncertainty. Moreover, the low renter share suggests a smaller pool of potential tenants, which could impact demand and occupancy. For small-portfolio investors, this area may not be the most attractive option unless they can secure properties below the median value and manage costs effectively.
Data Sources: FMR data from HUD (2027). 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.