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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,070 | $228,229 | 0.47% | F |
| 2BR | $1,320 | $270,411 | 0.49% | F |
| 3BR | $1,840 | $390,481 | 0.47% | F |
| 4BR | $2,160 | $597,249 | 0.36% | F |
| 5BR | $2,506 | $1,032,750 | 0.24% | F |
U.S. Census Bureau data (2024)
The ZIP code 87107 in Albuquerque, NM, has a population of 27,566, with 34.4% being renters. This indicates that it is a moderately renter-heavy area. The median household income stands at $61,672, which provides a baseline for understanding the economic conditions of potential tenants.
The market rent for this area is $1,275 per month. To put this into perspective, the typical rent consumes approximately 24.2% of the local median income. This is calculated by taking the monthly rent ($1,275) and dividing it by the annual median income ($61,672), then multiplying by 12 to get a percentage. This figure suggests that while the rent is significant, it remains manageable for a substantial portion of the population.
Comparatively, the Fair Market Rent (FMR) for FY 2024 in this ZIP is set at $1,050. This means that the actual market rent exceeds the FMR by $225, or about 21.4%. Landlords should be aware that this discrepancy might affect the availability of Section 8 vouchers, as they are typically capped at the FMR level.
In terms of voucher demand, the higher market rent compared to the FMR could indicate that there is a deeper demand for rental assistance. However, it also implies that landlords might face challenges in finding tenants who can cover the full rent with only a voucher. They will likely need to consider additional sources of income or subsidies from tenants.
The tenant profile expected in this ZIP would consist primarily of individuals and families who rely on rental assistance programs. These tenants will often have incomes below the median, necessitating the use of vouchers to afford housing. Landlords should prepare for a tenant base that includes those with financial constraints but who are still capable of paying their share of the rent, contributing to the overall stability of the property.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.