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 | $1,200 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,700 | $277,712 | 0.61% | D |
| 3BR | $2,340 | $345,668 | 0.68% | D |
| 4BR | $2,750 | $443,707 | 0.62% | D |
| 5BR | $3,190 | $527,587 | 0.6% | D |
U.S. Census Bureau data (2024)
Albuquerque’s 87120 ZIP code covers the vibrant West Side and Taylor Ranch area, known for its master-planned communities and convenient access to the Petroglyph National Monument. This neighborhood is characterized by a mix of established single-family homes and newer developments, appealing to families seeking a suburban feel within city limits. A major economic anchor in this region is the Presbyterian Rust Medical Center, which provides significant local employment and contributes to the area’s stability. The presence of this large healthcare facility draws a steady stream of medical professionals and support staff to the rental market.
From a financial perspective, the data presents a clear arbitrage opportunity for voucher holders. The HUD FY2026 Fair Market Rent for a 2-bedroom unit is set at $1,660, while the current Zillow market rent stands at $1,604. This creates a positive spread of $56 per month, meaning Section 8 tenants can afford the market rate with a slight surplus, making your unit highly competitive against non-subsidized inventory. The area’s median home value is $359,014, with a specific 2-bedroom median sale price of $275,594. Days-on-market data was not available in the current dataset.
The tenant pool here is solid, bolstered by a median household income of $86,907 and a renter share of 20.9%. This income level suggests a population that can afford quality housing, yet the lower renter share implies limited supply, reducing competition for landlords. Families are often drawn to this ZIP for its access to highly-rated schools within the Albuquerque Public Schools district and ample parks. These amenities help ensure consistent demand, even as market rents fluctuate.
The Section 8 verdict for 87120 is a strong buy based on cash-flow stability. With the 2-bedroom FMR exceeding the prevailing market rent by $56, you achieve guaranteed payments at or above market rates without needing to raise rents. Coupled with a moderate entry price of $275,594 for two-bedroom homes, investors can secure reliable, government-backed income in a neighborhood defined by healthcare jobs and family-friendly infrastructure.
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.