Section 8 Fair Market Rent (FMR) for ZIP 87045 - 2027

Location: McKinley County, NM | Metro: Cibola County, NM

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$720
1 Bedroom	$830
2 Bedrooms	$1,040
3 Bedrooms	$1,240
4 Bedrooms	$1,370
5 Bedrooms	$1,589
6 Bedrooms	$1,780
7 Bedrooms	$1,922
8 Bedrooms	$2,018

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,608

Median Household Income

$19,270

Housing Units

1,011

Renter Percentage

3.9%

Occupancy Rate

75.8%

Renter Occupied

When considering whether to purchase a property in ZIP code 87045 for Section 8 investment, follow this decision tree:

Step 1: Debt Service Coverage Ratio (DSCR)

The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $980. To determine if this amount clears the debt service on a property, you need to know the specific debt service of the property in question. If the debt service is less than $980, then the FMR covers the debt service, leading to a positive answer. However, if the debt service exceeds $980, the answer is negative, as the FMR would not be sufficient to cover the costs.

Step 2: Market Rent Comparison

The average market rent in ZIP 87045, according to the Census ACS, is $567. Compare this figure to the FMR of $980. If the market rent is below the FMR, there's an opportunity to charge a higher rent under Section 8 guidelines. If it's equal to or above the FMR, then the market rent already meets or exceeds what can be charged under Section 8, which might reduce the attractiveness of this investment option.

Step 3: Demand Analysis

In ZIP 87045, 3.9% of residents are renters, and the Days on Market (DOM) is not specified. To evaluate demand, consider the percentage of renters and the DOM. A high percentage of renters combined with a low DOM suggests strong demand. However, without a specific DOM figure, the decision hinges on the percentage of renters alone. Given the 3.9% figure, demand appears moderate. For a definitive yes or no, you would need the DOM to assess how quickly properties are being rented out.

Decision Outcomes

If the debt service is covered by the FMR ($980), the market rent ($567) is below the FMR, and the demand (3.9% renters) is deemed sufficient based on the DOM, then the answer is Yes.
If the debt service exceeds the FMR, or the market rent is at or above the FMR, the answer is No.
If the demand is uncertain due to missing DOM data, the answer is It Depends. Additional analysis of local rental trends and vacancy rates would be necessary to make a final decision.

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.