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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,070 | $215,313 | 0.5% | F |
| 2BR | $1,320 | $309,386 | 0.43% | F |
| 3BR | $1,840 | $446,690 | 0.41% | F |
| 4BR | $2,160 | $579,010 | 0.37% | F |
U.S. Census Bureau data (2024)
The ZIP code 87059, located in Tijeras, NM, within the Albuquerque, NM MSA metro area, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. This designation is supported by the favorable financial metrics that indicate a stable rental environment.
The Fair Market Rent (FMR) for a one-bedroom unit in ZIP 87059 for fiscal year 2024 is set at $1440, which exceeds the market rent of $1,405. This positive spread ensures that properties within this ZIP code can be rented at rates that are slightly above the market average, providing a buffer against potential economic downturns and ensuring steady cash flow for landlords and small-portfolio investors.
Moreover, the median home value in ZIP 87059 stands at $444,128. This figure, combined with the FMR and market rent data, suggests a relatively affordable housing market where Section 8 vouchers can effectively cover rental costs. Landlords can expect consistent payments from tenants whose rents are subsidized, thus reducing the risk of vacancies and unpaid rent.
The ZIP code's low price-cut share of 0.2% and the absence of day DOM (days on market) data further reinforce its stability. These indicators imply that rental properties in Tijeras do not typically require significant discounts to attract tenants, and they are likely to be occupied quickly once listed, minimizing idle periods and maximizing cash flow.
While the renter share of 5.8% and median income of $92,315 might suggest some diversification benefits, given the higher income levels and the relatively low percentage of renters, the primary strategic advantage here remains the cash-flow anchoring role. The higher median income indicates a robust local economy capable of supporting rental demand, while the modest renter share implies a balanced mix of homeowners and renters, reducing reliance on any single demographic group.
In conclusion, ZIP 87059 should be considered a strong cash-flow anchor in a Section 8 portfolio strategy due to its favorable FMR-to-market rent ratio and overall economic stability. This makes it an attractive option for investors seeking reliable returns.
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.