Location: Albuquerque, NM | Metro: Albuquerque, NM MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
U.S. Census Bureau data (2024)
To classify ZIP code 87044, we must consider both yield and stability factors. The yield can be assessed by comparing the Fair Market Rent (FMR) to the median home value. For ZIP 87044, the FMR for fiscal year 2024 is set at $1,480. However, the market rent is not available, which complicates direct comparisons but suggests that the FMR might serve as a reasonable proxy for rental rates.
The median home value in this area is $287,650. If we assume a typical mortgage rate and calculate potential rental yields based on the FMR, it indicates a relatively low yield market. A common rule of thumb for rental yields is to divide the annual rent by the property value. In this case, the annual rent would be approximately $17,760 ($1,480 x 12 months). Dividing this by the median home value gives us a yield of roughly 6%.
Stability, on the other hand, is influenced by the percentage of renters, days on market (DOM), and median household income. ZIP 87044 has a reported 0.0% of renters, which is highly unusual and likely indicates an error or lack of comprehensive data. The DOM figure is also not available, making it difficult to assess how quickly properties are turning over. The median household income is $60,313, which is lower than the national average, potentially indicating less financial stability among residents.
Given the low yield and the questionable stability metrics, ZIP 87044 does not appear to be a high-yield/low-stability flip-style market. Instead, it seems to fall into a category where the potential for quick flips is limited due to the low percentage of renters and possibly slow sales cycles. The area also lacks the characteristics of a steady-cashflow zone, as the rental yield is modest and the income levels are below average, suggesting that tenants may struggle to pay higher rents consistently.
Therefore, ZIP 87044 is best classified as a market with moderate yield and uncertain stability. Landlords and small-portfolio investors should approach this area cautiously, focusing on long-term cash flow strategies rather than short-term flipping opportunities. They should also prepare for possible challenges in tenant retention and rent collection, given the lower median household income.
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.