Section 8 Fair Market Rent (FMR) for ZIP 87154 - 2027
Location: Albuquerque, NM | Metro: Albuquerque, NM MSA
FY 2027 Fair Market Rent Rates
| 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 |
To determine if you should invest in ZIP 87154 for Section 8 properties, follow this decision tree based on the available data:
1) Does the Fair Market Rent (FMR) of $1200 cover debt service on a property?
- Yes. If the FMR of $1200 is sufficient to cover your debt service, proceed to the next question. Debt service includes mortgage payments, insurance, and other fixed costs associated with owning a rental property.
- No. If the FMR of $1200 does not cover your debt service, investing in ZIP 87154 would not be financially viable for Section 8 tenants.
2) How does the market rent compare to the FMR?
- Above FMR. If the market rent exceeds the FMR of $1200, it indicates that there is a potential for higher returns outside of the Section 8 program. Consider whether you want to target only Section 8 tenants or open up to the broader market.
- At FMR. If the market rent matches the FMR, then Section 8 properties will be priced similarly to the market. This scenario can still be viable if the demand for rentals meets your investment criteria.
- Below FMR. If the market rent is below the FMR, Section 8 properties could offer better returns compared to the general market. However, ensure that the lower market rents do not indicate underlying issues with the area.
3) Is there enough demand for rentals?
- It Depends. The percentage of renters and the days on the market (DOM) need to be analyzed together. If the renter percentage is high and the DOM is low, it suggests strong demand for rentals in ZIP 87154. Conversely, if the DOM is high despite a high renter percentage, it might indicate challenges in finding tenants, even if the demand exists. Without specific figures for these metrics, the decision to invest hinges on understanding the local rental market dynamics and trends.
Note: Specific data points such as the exact percentage of renters and the average DOM were not provided. These factors are crucial in assessing the viability of the investment and should be researched further.
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.