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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $231,149 | 0.44% | F |
| 3BR | $1,410 | $316,002 | 0.45% | F |
| 4BR | $1,530 | $373,051 | 0.41% | F |
U.S. Census Bureau data (2024)
Aztec, NM, located in ZIP code 87410, is a modest-sized community with a total population of 15,012. The area has a relatively low percentage of renters at 23.9%, suggesting a predominantly owner-occupied neighborhood. The median household income stands at $55,189, which indicates a middle-class community. The median home value in the region is $275,788, reflecting the typical cost of homeownership.
Turning to the rent economics, the Fair Market Rent (FMR) for ZIP 87410 as of fiscal year 2024 is set at $1000. This figure represents the benchmark for rental costs supported by federal housing assistance programs such as Section 8. In contrast, the actual market rent, according to Census ACS data, is significantly lower at $731 per month. This disparity between the FMR and the market rent suggests an opportunity for landlords who can benefit from the higher subsidy rates while potentially offering better quality housing.
The question of whether this place suits a hands-off voucher operator or a hands-on value-add buyer hinges on these economic factors. For a hands-off operator, the alignment between the FMR and the willingness to accept Section 8 vouchers could provide a steady stream of income without the need for extensive property management. However, for a hands-on value-add buyer, there is potential to improve properties and still attract tenants through the voucher program, leveraging the difference between the FMR and the market rent to achieve higher returns.
In summary, ZIP 87410 offers a balanced environment for both types of investors. The existing demographic and economic conditions support a stable investment, while the gap between FMR and market rent provides room for strategic improvements and higher profitability for active investors.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.