Location: McKinley County, NM | Metro: McKinley County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
U.S. Census Bureau data (2024)
The ZIP code 87347 presents several challenges for potential Section 8 landlords and small-portfolio investors. Tenant turnover is a significant concern, as the Fair Market Rent (FMR) for the area stands at $1,420 (for fiscal year 2026, metro), while the market rent remains unspecified. This discrepancy can lead to higher turnover rates if tenants find better rental options outside the program.
Vacancy exposure is another critical risk factor. With the days on market (DOM) also unspecified, it's difficult to predict how long a property might remain vacant between tenancies. Vacancies can significantly impact cash flow, especially when maintenance and management costs are factored in.
Deferred maintenance is a notable issue, given the lack of data on typical home values and median incomes in the area. Without these figures, it's challenging to assess the financial capacity of landlords to maintain properties adequately, which is crucial under the Section 8 program.
Despite these risks, the high renter share of 26.6% suggests a robust demand for rental housing, including Section 8 vouchers. High renter density typically translates into a larger pool of voucher holders, potentially reducing vacancy periods and increasing the likelihood of finding suitable tenants.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 87347 is moderate. While there are significant unknowns regarding market rents and property values, the high proportion of renters indicates a strong potential for demand, mitigating some of the risks associated with vacancy and turnover.
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.