Location: Farmington, NM | Metro: Farmington, NM MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 87364, located in Farmington, NM MSA, reveals several key points. The Fair Market Rent (FMR) set by HUD for this area in fiscal year 2024 is $880, while the Census ACS reports a market rent of $713. This means that voucher tenants can cashflow at FMR, indicating a positive financial outcome for landlords who accept vouchers.
To further understand the investment potential, consider the rent-to-price ratio. The median home value in ZIP 87364 is not available, which suggests that there might be limited residential sales data, making it difficult to directly compare home values to rental rates. However, the fact that voucher rents exceed market rents by $167 per month implies that voucher properties could offer better cashflow compared to market-rate rentals.
The dynamics between renting and buying in this market also play a role. With the median days on market (DOM) being unavailable, it indicates that homes are either selling quickly or there is insufficient transaction volume to provide a reliable average. Similarly, the percentage of homes that have experienced a price cut is also not available, which could mean that the market is stable without significant price adjustments.
In conclusion, the strongest investor angle in ZIP 87364 is likely to be cashflow. Landlords who accept Section 8 vouchers can expect a higher monthly income compared to market-rate rents, making it an attractive option for those looking to maximize their returns on rental investments.
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.