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 | $1,350 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,630 |
| 4 Bedrooms | $3,090 |
| 5 Bedrooms | $3,584 |
| 6 Bedrooms | $4,014 |
| 7 Bedrooms | $4,335 |
| 8 Bedrooms | $4,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,530 | $210,298 | 0.73% | D |
| 2BR | $1,910 | $296,076 | 0.65% | D |
| 3BR | $2,630 | $410,353 | 0.64% | D |
| 4BR | $3,090 | $519,537 | 0.59% | F |
| 5BR | $3,584 | $648,016 | 0.55% | F |
U.S. Census Bureau data (2024)
The potential risks for a first-time Section 8 landlord investing in ZIP code 87113 in Albuquerque, NM, are significant. Tenant turnover can be costly, with market rents at $2,036 compared to the Federal Market Rent (FMR) of $1,640 for fiscal year 2024. This difference suggests that landlords may face challenges in attracting tenants willing to pay the lower FMR rate, leading to higher vacancy rates. The average days on market (DOM) for rental listings in this area is 28 days, which is relatively short but still leaves room for financial strain during periods of vacancy. Additionally, the typical home value in ZIP 87113 is $426,634, while the median household income is only $95,922. This disparity indicates that many residents may struggle to afford maintenance costs, potentially increasing the burden on landlords to cover deferred maintenance expenses.
However, these risks must be weighed against the high concentration of renters in the area, with 28.8% of the population renting their homes. High renter density often translates into a robust demand for housing vouchers, which can provide a steady stream of qualified tenants. The presence of a large number of voucher holders can mitigate some of the financial uncertainties associated with vacancy and turnover, as these tenants have government support to meet their rental obligations.
In conclusion, despite the notable risks, the high renter density and corresponding demand for Section 8 vouchers make ZIP 87113 a moderate risk area for first-time Section 8 landlords.
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.