Location: McKinley County, NM | Metro: McKinley County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
ZIP code 87305 is situated within the McKinley County, NM metro area. Its Fair Market Rent (FMR) for fiscal year 2026 is set at $1,090, which provides insight into the rental market dynamics within this ZIP code. To understand how 87305 stacks up against other ZIP codes in McKinley County, it's crucial to analyze its specific metrics.
The FMR of $1,090 is a government-determined figure that represents the maximum amount of rent that low-income households can afford without incurring excessive housing costs. This figure is lower than what might be considered the average market rent for the county, given that the market rent is currently not available. However, the absence of market rent data suggests that the private rental sector may not be as robust or well-documented as the FMR. Similarly, the lack of data on home values indicates that either the homeownership rate is low, or there is limited recent sales activity.
The renter share of 4.4% in ZIP 87305 is relatively low compared to typical ZIP codes in McKinley County, where the average renter share might be higher. This low percentage could indicate a strong preference for homeownership or a smaller population overall. Given the low renter share and the specific FMR figure, ZIP 87305 likely represents a value pocket within the larger McKinley County metro. Value pockets are areas where rental costs are lower relative to surrounding neighborhoods, making them attractive for low-income renters who qualify for Section 8 assistance.
The combination of a defined FMR and a low renter share points towards a segment of the market that is particularly suited for those seeking affordable rental options. While it is not possible to definitively classify 87305 as a premium sub-market due to the unavailability of market rent and home value data, the evidence suggests it is more aligned with being a value pocket. This classification is further supported by the fact that a high renter share often correlates with a higher concentration of Section 8 participants, which would signal a sweet spot for landlords willing to accept Section 8 vouchers.
In conclusion, ZIP 87305 stands out as a value pocket within the McKinley County, NM metro, offering rental properties at an FMR of $1,090. Landlords and small-portfolio investors should consider the potential for steady occupancy rates among low-income households, leveraging the Section 8 program to ensure consistent tenancy and income stability.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
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.