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 |
A skeptical investor might question whether the Fair Market Rent (FMR) of $1200 for ZIP 87184 in fiscal year 2024 will adequately cover the mortgage on a property in this area. While the exact average home price for ZIP 87184 is not directly provided in the data, it's important to note that the median home value in the broader area of Albuquerque, NM, is $163,167. This suggests that properties in ZIP 87184 could be priced similarly, depending on specific location factors. To determine if the FMR will cover the mortgage, one must consider the mortgage rate and the typical loan-to-value ratio. A conservative estimate, using a 4% mortgage rate and a 75% LTV ratio, would result in a monthly mortgage payment of approximately $919 for a $163,167 home. Thus, the FMR of $1200 would indeed cover the mortgage, leaving room for other expenses.
The investor might also wonder if there is sufficient renter demand at the current vacancy rate of N/A%. According to the data from Zillow and Realtor.com, the rental market in ZIP 87184 is robust, with consistent demand trends. However, the lack of a specific vacancy rate makes it challenging to provide a definitive answer. Typically, a vacancy rate below 5% indicates strong demand. Therefore, without a precise figure, we can infer that the demand is likely healthy but cannot quantify it exactly.
Another concern could be whether housing vouchers will keep pace with the market rents in ZIP 87184. The Housing Choice Voucher (HCV) program, managed by local Public Housing Agencies (PHAs) and funded by HUD, aims to assist low-income families. The HCV Data Dashboard provides national trends but does not specify the data for ZIP 87184. Based on the national context, HUD adjusts voucher amounts annually to reflect changes in the rental market. Given that the FMR for ZIP 87184 is set at $1200, it is reasonable to assume that the voucher amounts will be adjusted accordingly. However, the exact amount of adjustment for this specific ZIP code is not available in the data provided.
In summary, the FMR of $1200 should cover the mortgage on a property in ZIP 87184, assuming typical financing conditions. There appears to be strong renter demand, though the exact vacancy rate is unknown. Lastly, while HUD adjusts voucher amounts to match market rents, the precise adjustments for ZIP 87184 are not specified in the available data.
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.