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 Section 8 housing market in ZIP 87181, located within the Albuquerque, NM MSA metro, presents a unique opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for FY 2024 in this area is set at $1200, which represents the maximum amount that voucher holders can pay for rent. However, specific market rent data for ZIP 87181 was not readily available. To provide a comparative analysis, we must rely on the broader context of the Albuquerque housing market.
Apartments for rent near ZIP 87181 range widely, but without precise local figures, we can infer that voucher tenants will generally cashflow at the FMR rate. This means that landlords accepting vouchers at the $1200 FMR should expect stable income, as it aligns closely with the average rental costs in the area. It's important to note that this cashflow stability is contingent upon the unit being competitively priced within the market.
The median home value in ZIP 87181 is $344,457, according to recent housing market data. Using this figure, we can derive a rough rent-to-price ratio, which is crucial for understanding the rent-versus-buy dynamics. If we assume an average annual mortgage cost (including principal, interest, taxes, and insurance) of approximately $17,222.50 (based on a 4% interest rate), the monthly cost would be around $1,435.21. Given the FMR of $1200, this suggests that landlords may only achieve cashflow with premium units, where the rent exceeds the FMR.
The day median DOM (days on market) and the percentage of price cuts were not specified for ZIP 87181. However, these metrics typically influence the rent-versus-buy decision. A lower DOM indicates a faster-selling market, which could suggest a preference for buying over renting. Conversely, a higher percentage of price cuts might indicate a slower market, making renting a more attractive option.
The strongest investor angle in ZIP 87181 appears to be stability. With a competitive FMR rate and a robust median home value, investors can expect consistent returns from Section 8 properties, making this a reliable investment choice.
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.