Location: Farmington, NM | Metro: Farmington, NM MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $229,128 | 0.53% | F |
| 3BR | $1,690 | $328,601 | 0.51% | F |
| 4BR | $1,830 | $441,254 | 0.41% | F |
U.S. Census Bureau data (2024)
The ZIP code 87412 in Farmington, NM, encompasses a diverse residential area with a total population of 11,418. Renters make up 23.0% of the residents, indicating a significant but not overwhelming presence of rental properties. The median household income in this neighborhood stands at $79,461, reflecting a middle-class community where most residents have stable employment and financial standing. The median home value in the area is $324,949, suggesting that homeownership is relatively affordable compared to national averages.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 87412 as of the fiscal year 2024 is set at $1,230. This figure represents the maximum amount that a Section 8 voucher holder can pay for housing. In contrast, the Census Bureau's American Community Survey (ACS) indicates that the average market rent in the area is $1,086. This means that landlords participating in the Section 8 program can expect to receive a slightly higher rent per unit than the typical market rate, which can be advantageous given the stability and government backing of the vouchers.
Given these economic factors, ZIP 87412 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of Section 8 payments and the slight premium over market rates make it an attractive option. Meanwhile, hands-on buyers looking to improve and add value to their properties can capitalize on the potential to charge closer to the FMR while still benefiting from the guaranteed income stream. However, it's important to note that the success of such investments depends on the condition of the properties and the landlord's ability to meet Housing Quality Standards (HQS).
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.