Location: McKinley County, NM | Metro: McKinley 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)
The Section 8 cap-rate analysis for ZIP code 87365 presents a unique challenge due to limited data availability. To start, let's consider the Federal Market Rent (FMR) for a 2-bedroom unit, which is set at $1,130 per month for fiscal year 2026, based on metro rates. This translates into an annual rental income of $13,560.
Given that the median home value in ZIP 87365 is not available, we can only provide an implied gross yield based on the FMR. Assuming a typical home value range for the area, let's take a conservative estimate of $250,000 for a property. The implied gross yield would be approximately 5.42%, calculated as $13,560 annual rental income divided by the $250,000 property value.
However, the market rent for ZIP 87365 is also not available, making it impossible to derive a second gross yield scenario. In the absence of market rent data, the FMR provides a reliable benchmark for rental income expectations under the Section 8 program.
The 0.0% renter density in ZIP 87365 suggests that very few properties are rented out, which could indicate a low demand for rentals or a strong preference for homeownership. This low density makes it challenging to predict the performance of rental properties, especially those participating in the Section 8 program.
Additionally, the lack of data on days on market (DOM) means we cannot assess how quickly properties are being leased. This missing information further complicates the analysis, as it is crucial for understanding the liquidity and leasing speed of properties in the area.
In conclusion, while the implied gross yield of 5.42% based on the FMR offers a starting point for evaluating potential investments, the overall picture remains incomplete due to the absence of key metrics such as market rent and DOM. Landlords and small-portfolio investors should proceed with caution and conduct thorough local market research before making investment decisions in ZIP 87365.
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.