Section 8 Fair Market Rent (FMR) for ZIP 87021 - 2027

Location: Cibola County, NM | Metro: Cibola County, NM

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$870
1 Bedroom	$910
2 Bedrooms	$1,090
3 Bedrooms	$1,300
4 Bedrooms	$1,430
5 Bedrooms	$1,659
6 Bedrooms	$1,858
7 Bedrooms	$2,007
8 Bedrooms	$2,107

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,871

Median Household Income

$40,129

Housing Units

1,247

Renter Percentage

32.3%

Occupancy Rate

82.0%

Renter Occupied

330

The ZIP code 87021, located in the heart of Gallup, New Mexico, offers a unique blend of cultural heritage and economic opportunity. This area is characterized by its mix of residential and commercial properties, making it a viable investment option for landlords and small-portfolio investors looking to capitalize on the local housing market.

The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $1,010, indicating a stable rental price environment.
The average market rent, according to the Census American Community Survey (ACS), stands at $886, which is below the FMR but still represents a solid return on investment.
Although the median home value is not available, the significant 32.3% renter share suggests a robust demand for rental properties in the area.
The median income in the region is $40,129, which aligns well with the rental rates and indicates that residents have the financial capacity to meet their housing expenses.
The Days on Market (DOM) data is not applicable here, but the combination of the FMR and market rent figures provides a clear picture of the rental landscape.
The discrepancy between the FMR and market rent points to potential opportunities for landlords to increase rents gradually without pricing out the majority of tenants.

In summary, the ZIP code 87021 presents a balanced market with a strong tenant base and room for rental price adjustments. The significant gap between the FMR and current market rent suggests that there is a margin for growth, allowing investors to potentially increase their revenue while remaining competitive in the local market. The high renter share also ensures a steady demand for rental properties, making it a favorable location for those interested in real estate investments. However, the lack of median home value and DOM data highlights areas where further research could provide additional insights into the overall health and dynamics of the local housing market.

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.