Location: Albuquerque, 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)
To classify ZIP code 87041, we must analyze the yield and stability based on the given data points. The Fair Market Rent (FMR) for ZIP 87041 in fiscal year 2024 is set at $1,030, while the median home value stands at $282,463. This suggests that rental properties could generate significant cash flow relative to their purchase price. However, the lack of market rent data means we rely solely on FMR, which might not fully reflect the local rental market dynamics.
Moving to stability, 13.0% of residents are renters, indicating a smaller proportion of the population relies on rental housing. The median income of $80,662 provides insight into the financial capability of potential tenants but without day-on-market (DOM) data, it's challenging to gauge how quickly rental units turn over. A lower percentage of renters generally signals less demand for rentals, potentially leading to longer vacancies.
The high FMR relative to the median home value points towards a market where rental yields can be attractive. For instance, a property purchased at $282,463 with an annual rent of $12,360 ($1,030 per month) would yield approximately 4.4% before expenses. This yield is competitive in many markets and could attract investors seeking high returns.
However, the stability is questionable due to the low percentage of renters and unknown DOM figures. While the median income is robust, supporting higher rents, the limited rental demand suggests a volatile market where vacancy rates could rise, impacting cash flow. Additionally, the absence of DOM data leaves uncertainty around the speed of lease renewals or new tenant acquisitions.
In conclusion, ZIP 87041 appears to offer a balance between yield and stability. It is not a high-yield/low-stability flip-style market, nor is it a steady-cashflow zone. Instead, it represents a middle ground where investors can achieve decent yields but must be prepared for potential fluctuations in occupancy and rental income. The decision to invest should weigh the attractiveness of the $1,030 FMR against the risks associated with a smaller rental market and the potential for prolonged vacancies.
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.