Location: McKinley County, NM | Metro: Farmington, NM MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The analysis of ZIP 87313 reveals several key points for landlords and small-portfolio investors considering investment in this area.
The rent math does not work favorably here. The Fair Market Rent (FMR) for ZIP 87313 in fiscal year 2024 is set at $880. However, the market rent as reported by the Census ACS is significantly lower at $610. This discrepancy means that landlords relying on the FMR to set rents will likely face challenges in finding tenants willing to pay the higher rate, leading to potential vacancies or the need to reduce prices.
Acquisition in this ZIP code is not straightforward due to limited data. The median home value is listed as N/A, indicating a lack of sufficient sales data to establish an average. Similarly, the Days on Market (DOM) and the percentage of homes requiring price cuts are also unavailable, which makes it difficult to assess how quickly properties sell and at what price point adjustments might be necessary. Without these metrics, investors must rely on other indicators to gauge property affordability.
Tenant demand in ZIP 87313 is relatively low. With a total population of 4,971, only 35.5% are renters. This suggests that while there is some demand for rental housing, it is not particularly robust compared to areas with higher renter shares. The smaller pool of potential tenants could make it harder to fill units and maintain occupancy rates.
Verdict: Investment in ZIP 87313 presents significant challenges. The mismatch between the FMR and the actual market rent indicates potential difficulties in setting competitive rental prices. Limited data on home values and sales dynamics complicate the acquisition process, and the moderate tenant demand means competition for renters could be fierce. Given these factors, landlords and investors should proceed with caution and consider additional research before committing to this market.
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.