Location: Albuquerque, NM | Metro: Albuquerque, NM MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
The analysis of ZIP 87119, located in Albuquerque, NM MSA metro, reveals that it can serve as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the comparison between the Fair Market Rent (FMR) for the area and the current market conditions.
In ZIP 87119, the FMR for a unit with four bedrooms as of FY 2024 is set at $1200. This figure provides a benchmark for rental income that can be expected from tenants participating in the Section 8 program. Given the lack of specific market data on median home values and average rental prices, the FMR serves as a reliable indicator for maintaining consistent cash flow.
The absence of detailed local market data suggests that the area might not be experiencing rapid appreciation or have high demand for rental properties. However, this also means that the risk of significant price drops or prolonged days on market (DOM) is lower, making it a stable component of an investment portfolio.
While the exact percentage of renters and median income is not available, the reliance on FMR figures indicates that the majority of potential tenants in this ZIP code may depend on government assistance to afford housing. Therefore, the cash flow generated from these properties will be relatively predictable and stable, which aligns well with the conservative nature of a cash-flow anchor strategy.
To further solidify this strategy, landlords should focus on properties that meet the necessary criteria for Section 8 tenancy, ensuring compliance with HUD standards. This approach allows for steady rental income without the volatility associated with fluctuating market prices.
Data Sources: FMR data from HUD (2027).
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.