Location: McKinley County, NM | Metro: McKinley County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The classification of ZIP 87320 hinges on the balance between yield potential and market stability, as indicated by the provided data points. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,140. This figure represents the maximum rent that can be charged for a property under the Section 8 program, which is significantly higher than the market rent of $800. This suggests a high-yield environment for landlords who are willing to participate in the Section 8 program.
However, the stability of the market is less robust. With only 11.1% of the population being renters, there is a limited pool of potential tenants, which could lead to higher vacancy rates and increased competition among landlords. Additionally, the median income of $43,125 provides insight into the economic health of the area, but without a day DOM (days on market) figure, it's challenging to assess the turnover rate of rental properties. Despite these limitations, the disparity between the FMR and market rent indicates that landlords participating in Section 8 can expect to generate above-market cash flows.
To summarize, ZIP 87320 leans towards a high-yield/low-stability market. The primary driver of this classification is the significant gap between the FMR and the typical market rent, which offers an attractive opportunity for higher returns. However, the low percentage of renters and lack of detailed turnover metrics suggest that the market may not provide the same level of stability as a steady-cashflow zone. For landlords and small-portfolio investors looking to maximize their rental income, this ZIP code presents a viable option, albeit with the caveat of potentially higher risks associated with tenant acquisition and retention.
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.