Location: McKinley County, NM | Metro: Cibola County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
U.S. Census Bureau data (2024)
When considering whether to purchase a property in ZIP code 87323 for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,130 cover the debt service on a property?
If the N/A property's debt service is less than $1,130, then the answer is Yes. The FMR can cover the costs, making it a viable investment.
If the N/A property's debt service is higher than $1,130, then the answer is No. The FMR would not be sufficient to meet the financial obligations of owning the property.
2) Is the market rent of $485 above, at, or below the FMR?
The market rent of $485 is below the FMR of $1,130. This indicates that the property would be more attractive to Section 8 tenants than market-rate tenants. However, the gap between the two rates suggests a lower potential for profit if the property is rented out at market rates.
3) Are the 9.3% renters and N/A-day Days on Market (DOM) enough demand?
If the DOM is low, say under 30 days, and combined with the 9.3% rental rate, the demand is likely strong enough to support a Section 8 property. In this case, the answer is Yes.
If the DOM is high, over 30 days, then even with the 9.3% rental rate, there might not be enough demand. Here, the answer is No.
If the DOM is moderate, around 30 days, the answer is It Depends. The demand might be sufficient but could also be risky. Consider other factors such as vacancy rates and competition.
Note: The N/A values indicate missing data which should be researched to make a fully informed decision.
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.