Location: Cibola County, NM | Metro: Cibola County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 87034 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for this area stands at $990 for the fiscal year 2026, while the Census ACS reports an average market rent of $815. This means that the FMR exceeds the market rent by $175, or approximately 21.5%.
In this context, landlords and small-portfolio investors should recognize that voucher tenants can represent a yield play. Despite the fact that the market rent is lower than the FMR, landlords can benefit from the stability and predictability of Section 8 tenants. The federal government guarantees timely payments, which can be higher than the current market rate. This scenario provides an opportunity to secure a higher-than-average rental income, particularly when considering the relatively low median income of $48,795 in the area.
However, it's important to note that only 7.8% of the population in ZIP 87034 are renters, indicating a smaller pool of potential tenants. Additionally, the median home value being listed as N/A suggests that homeownership may be more prevalent or that there is limited data available on home values. These factors could influence the overall demand for rental properties.
Landlords must also consider the administrative aspects of managing Section 8 properties. While the higher guaranteed payments can improve yields, there may be additional costs or considerations associated with maintaining units to meet HUD standards. Nonetheless, the gap between FMR and market rent makes ZIP 87034 a potentially attractive market for those willing to engage with the Section 8 program.
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.