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 | $1,100 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,140 |
| 4 Bedrooms | $2,530 |
| 5 Bedrooms | $2,935 |
| 6 Bedrooms | $3,287 |
| 7 Bedrooms | $3,550 |
| 8 Bedrooms | $3,728 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $289,953 | 0.54% | F |
| 3BR | $2,140 | $357,485 | 0.6% | F |
| 4BR | $2,530 | $416,875 | 0.61% | D |
| 5BR | $2,935 | $492,919 | 0.6% | F |
U.S. Census Bureau data (2024)
Albuquerque’s 87114 ZIP code, often encompassing the Northwest Heights and Ventana Ranch areas, is characterized by master-planned communities and sweeping views of the Sandia Mountains. This suburban region is known for its family-friendly atmosphere, abundant parks, and proximity to the Petroglyph National Monument. A key institutional anchor here is Lovelace Medical Center’s Westside facility, which serves as a major employer and stabilizes the local economy. The neighborhood primarily features single-family homes on larger lots, attracting long-term residents who value space and quieter living over the density of the urban core.
From a financial standpoint, the numbers reveal a tight rental environment. The FY2026 HUD Fair Market Rent for a 2-bedroom unit is $1,660, which sits $11 below the current Zillow market rent of $1,649. While this parity suggests the voucher amount covers the market rate, the $375,660 median home value indicates a high cost of entry that compresses yields. Days on market data is currently unavailable, yet the $287,351 median 2BR sale price suggests investors must rely on the $1,660 ceiling to ensure the debt service is covered without significant out-of-pocket gaps.
Demand drivers appear robust, supported by a solid renter share of 30.8% and a median household income of $84,277. This income level is well above the typical voucher holder's threshold, implying that the private-market competition is financially healthy. Families are drawn to the area for its highly-rated public schools within the Albuquerque Public Schools district and convenient access to major retail corridors along Coors Boulevard. With local amenities like the Unser Racing Park and easy access to the Paseo del Norte, the tenant pool ranges from working professionals to families seeking stability.
For the Section 8 investor, the strongest angle in 87114 is stability and low turnover rather than aggressive cashflow. The near-perfect alignment between the $1,660 FMR and market rent ensures you receive fair market value without chasing premiums. Combined with the area’s institutional employment and desirable school districts, this ZIP code offers a defensive play where voucher tenants are likely to stay for the long term, preserving asset value and minimizing vacancy loss.
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.