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 analysis for Section 8 properties in ZIP code 87193 focuses on the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for ZIP 87193 is set at $1200. However, the current market rent data is unavailable, which complicates a direct comparison. Despite this, understanding the implications of the FMR can still provide valuable insights for landlords and small-portfolio investors.
In the absence of specific market rent figures, we must consider the potential scenarios. Should the FMR exceed the market rent, it would indicate that landlords accepting Section 8 vouchers could achieve higher yields compared to renting at open-market rates. This scenario transforms properties into a yield play, where landlords benefit from government subsidies that bridge the gap between FMR and lower market rents.
Conversely, if the market rent surpasses the FMR, landlords might face the challenge of underpricing their units to accommodate Section 8 tenants. This situation could reduce profitability unless the landlord benefits from other incentives such as tax breaks or long-term lease stability. The cost of housing voucher tenants below open-market rates must be weighed against these potential advantages.
The analysis is anchored in the broader context of Unknown, NM, where data on the percentage of renters, median home value, and median income is also unavailable. This lack of data means that while the FMR provides a benchmark, it does not offer a complete picture of the rental market dynamics in the area. Landlords should consider local trends and consult real estate professionals to fill in these gaps and make informed decisions.
To summarize, the key figure for Section 8 properties in ZIP 87193 is an FMR of $1200 for fiscal year 2024. The impact of this figure on investment strategies depends heavily on the unknown market rent conditions. While the FMR can serve as a guideline for pricing, the true value for landlords lies in understanding how this figure compares to the local market and leveraging this knowledge to maximize returns or manage costs effectively.
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.