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 | $154,789 | 0.69% | D |
| 2BR | $1,320 | $247,193 | 0.53% | F |
| 3BR | $1,840 | $303,769 | 0.61% | D |
| 4BR | $2,160 | $384,781 | 0.56% | F |
U.S. Census Bureau data (2024)
ZIP code 87108 is located in Albuquerque, NM, and it represents a densely populated urban neighborhood with a significant rental market presence. The area has a total population of 36,331 residents, with 62.5% being renters. This high percentage of renters indicates a strong demand for rental housing, which can be advantageous for investors interested in the rental market.
The median household income in this ZIP code is $42,724, which is below the national average but still provides a solid economic base for the community. The median home value stands at $284,408, reflecting the overall cost of homeownership in the area. However, the focus for many investors will be on the rental market dynamics, where the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,030, while the actual market rent, as measured by Zillow's ZORI index, is slightly lower at $1,021 per month. This means that properties receiving Section 8 vouchers are likely to be rented at rates close to the fair market value, offering a stable and predictable income stream for landlords.
Given these factors, ZIP 87108 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the high percentage of renters and stable rental income make it an attractive location for passive investments. On the other hand, value-add buyers might find opportunities to improve property values and rents through renovations or management upgrades, given the slightly higher FMR compared to the current market rent. Both strategies can be successful here, depending on the investor's goals and resources.
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.