Location: Socorro County, NM | Metro: Albuquerque, NM MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 87036 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1030, while the Census ACS reports the market rent at $832. This creates a gap of $198, or approximately 23.8%, where the FMR exceeds the market rent.
In this scenario, landlords and small-portfolio investors should view voucher tenants as a yield play. The higher FMR allows property owners to receive a payment that is closer to the FMR rather than the lower market rate. Thus, accepting Section 8 tenants can provide a stable income source that aligns more closely with the FMR, thereby increasing the overall yield of the investment.
The context of ZIP 87036 further supports this conclusion. With only 11.4% of residents being renters, there is a limited pool of potential tenants willing to pay market rent. Additionally, the median home value stands at $180,056, indicating a relatively affluent area. However, the median income is $47,132, which suggests that many residents may struggle to afford market rents without assistance. Therefore, the opportunity to secure a rental income at or near the FMR through Section 8 vouchers becomes particularly attractive.
Landlords should be aware that while the FMR provides a higher rental income compared to the market rate, there are other considerations. Section 8 properties must comply with HUD standards, which can necessitate maintenance and upgrades. Nevertheless, the financial benefit of receiving $1030 per unit versus the average market rent of $832 makes this a compelling strategy for maximizing returns in ZIP 87036.
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.