Section 8 Fair Market Rent (FMR) for ZIP 87198 - 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 buy in ZIP 87198 (Unknown, NM) for Section 8 investments, follow this decision tree:
- Does FMR $1200 (zip FY 2024) clear debt service on a property?
- Yes: If your property's debt service is less than $1200 per month, then the Fair Market Rent (FMR) can cover your expenses. Proceed to the next question.
- No: If the debt service exceeds $1200, then the FMR cannot cover your costs. Do not purchase for Section 8 in this ZIP code.
- Is market rent above, at, or below FMR?
- Above FMR: If the market rent is higher than $1200, consider the gap between the two. A significant difference might indicate that Section 8 tenants won't be able to afford the rent, making it difficult to fill vacancies with Section 8 vouchers. It depends on how much higher the market rent is compared to the FMR.
- At FMR: If the market rent matches the FMR, you can expect to fully cover your costs with Section 8 tenants. This scenario supports purchasing properties in ZIP 87198 for Section 8.
- Below FMR: If the market rent is lower than $1200, it suggests that the area is less expensive, which could make it easier to attract Section 8 tenants. However, ensure that the lower market rent still allows you to meet your financial goals. It depends on your investment criteria and the specific property.
- Are the percentage of renters and days on market (DOM) enough demand?
- High percentage of renters and low DOM: If there is a high demand for rental properties, indicated by a large percentage of renters and a short time for properties to be listed before being rented, then the demand is sufficient. This would support a positive decision to invest in Section 8 properties in ZIP 87198.
- Moderate percentage of renters and moderate DOM: If the percentage of renters is moderate and the DOM is neither too long nor too short, the demand is stable but not exceptional. The decision to invest in Section 8 properties here would depend on your risk tolerance and other investment opportunities available.
- Low percentage of renters and high DOM: If the percentage of renters is low and the DOM is long, indicating a slow rental market, then the demand is insufficient. Do not purchase properties for Section 8 in this ZIP code.
The final decision will depend on your answers to these questions. Ensure that the FMR covers your debt service, the market rent aligns with your investment strategy, and the rental demand meets your expectations.
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.