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 determine if a landlord should invest in ZIP code 87061 for Section 8 properties, follow this decision tree:
Step 1: Clearing Debt Service
The Fair Market Rent (FMR) for ZIP 87061 in fiscal year 2024 is set at $1030. A critical first step is assessing whether this amount can cover the debt service on a potential property. If the N/A property's debt service is less than or equal to $1030, then the answer is yes, it clears debt service. Otherwise, no.
Step 2: Market Rent Comparison
Next, compare the market rent to the FMR. The market rent for 87061 is currently N/A. If the market rent is above $1030, landlords might find it challenging to justify renting out their property solely based on Section 8 payments, leading to a no. If the market rent equals or is slightly below $1030, the answer leans towards yes, as Section 8 payments align closely with what tenants would pay otherwise. If the market rent is significantly below $1030, the answer is yes, as Section 8 provides a higher rental income compared to the local market rates.
Step 3: Demand Assessment
Evaluate the demand for rentals in the area. With 0.0% of renters and N/A-day Days On Market (DOM), the demand signal is weak. If the DOM is high, indicating that listings stay on the market longer, the answer is no, as there isn't sufficient tenant interest. Conversely, if the DOM is low, suggesting quick turnover, the answer is yes, indicating strong demand despite the low percentage of renters. However, if the DOM is moderate, the answer depends on other factors such as the competition in the rental market and the property's condition.
In summary, for ZIP 87061, a landlord should only consider buying if the property's debt service is covered by the $1030 FMR, the market rent is either equal to or below this figure, and the DOM indicates a reasonable demand for rentals. The weak signal from the 0.0% renters requires careful consideration of the DOM and market conditions before making an investment 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.