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 | $1,400 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,220 |
| 5 Bedrooms | $3,735 |
| 6 Bedrooms | $4,183 |
| 7 Bedrooms | $4,518 |
| 8 Bedrooms | $4,744 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,990 | $252,159 | 0.79% | D |
| 3BR | $2,740 | $349,566 | 0.78% | D |
| 4BR | $3,220 | $413,480 | 0.78% | D |
| 5BR | $3,735 | $476,960 | 0.78% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 87144 in Rio Rancho, NM, hinges on the balance between yield and stability. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,690, which is lower than the market rent of $1,821. This suggests a slight edge in rental pricing over the FMR, indicating a modest yield potential for landlords. However, the median home value of $373,645 is significantly higher, which can impact the overall profitability when considering property acquisition costs.
Stability indicators reveal a mixed picture. The percentage of renters stands at 13.8%, which is relatively low compared to other areas, potentially making it harder to find tenants. Additionally, the days on market (DOM) for rentals is 22 days, which is average and does not signal extreme difficulty in leasing properties. The median household income of $94,550 supports the ability of residents to afford the median rent, thereby enhancing the stability of rental cash flows.
Based on these figures, ZIP 87144 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. While the rental income is slightly above the FMR, the low percentage of renters and the median home value suggest that flipping properties for quick profits would be challenging due to higher acquisition costs and possibly slower sales cycles. On the other hand, the median income level supports stable rental payments, making long-term investment more appealing.
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.