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 | $980 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $255,082 | 0.55% | F |
| 3BR | $1,960 | $328,260 | 0.6% | F |
| 4BR | $2,310 | $403,706 | 0.57% | F |
| 5BR | $2,680 | $480,177 | 0.56% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 87110, located in Albuquerque, NM, are significant. Firstly, the market rent stands at $1,448, which is notably higher than the Fair Market Rent (FMR) of $1,310 for FY 2024. This disparity can lead to increased tenant turnover, as tenants might struggle to afford the market rate once their vouchers expire. Secondly, vacancy exposure is a concern, with an average Days on Market (DOM) of 27 days. This indicates that properties may remain vacant longer than desirable, reducing cash flow and increasing holding costs.
Additionally, the deferred maintenance risk is substantial. With a typical home value of $319,254 and a median household income of $64,892, landlords must be prepared for the possibility of tenants not having the financial capacity to maintain the property's condition. This can result in higher repair and maintenance expenses over time, potentially exceeding the rental income received.
However, these risks are tempered by the high renter share in the area, which stands at 39.1%. A larger proportion of renters often translates into a higher demand for Section 8 vouchers, providing a stable pool of potential tenants. This can help mitigate some of the financial risks associated with tenant turnover and vacancy rates.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 87110 is moderate.
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.