Location: Albuquerque, NM | Metro: Albuquerque, NM MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,130 | $405,405 | 0.53% | F |
U.S. Census Bureau data (2024)
The ZIP code 87042, with a population of 3,410, has 17.4% of residents classified as renters. This indicates that the area is primarily dominated by homeowners rather than renters, suggesting that the demand for rental properties using Section 8 vouchers might be relatively low compared to areas with higher percentages of renters.
The median household income in this ZIP is $73,057, which provides a basis for evaluating the affordability of typical market rents. The average market rent of $1,237 represents approximately 16.9% of the median household income, indicating that rent consumes a significant portion of the income of those who choose to rent.
Comparing the market rent to the Fair Market Rent (FMR) figure of $1,230 for FY 2024, we see that the market rent slightly exceeds the FMR by $7. This suggests that landlords in this area might face some challenges in fully covering their rental costs through Section 8 vouchers alone, as the vouchers are typically capped at the FMR level.
The type of tenants landlords can expect in ZIP 87042 will likely include individuals and families who are seeking affordable housing options but may find themselves paying more than the FMR due to the slight premium on market rents. Landlords should prepare for tenants who may have a moderate need for financial assistance but also have access to stable incomes that align with the overall economic profile of the area.
To summarize, ZIP 87042 is not a renter-heavy area, and while there is a demand for rental units, it is not deeply reliant on Section 8 vouchers. The typical rent eats into about 16.9% of the median income, making it a significant expense for renters. With the FMR slightly lower than the market rent, landlords should anticipate a mix of tenants who can afford the higher rent but still require some form of financial support.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.