Section 8 Fair Market Rent (FMR) for ZIP 87417 - 2027

Location: Farmington, NM | Metro: Farmington, NM MSA

Investment Score for ZIP 87417

N/A

Monthly Rent (2BR)

$1,010

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,410	$264,062	0.53%	F
4BR	$1,530	$317,378	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

6,624

Median Household Income

$75,215

Housing Units

1,939

Renter Percentage

25.8%

Occupancy Rate

85.7%

Renter Occupied

428

The ZIP code 87417, located in New Mexico, offers a unique blend of rural charm and suburban convenience, making it an attractive area for both residents and investors. The market here is characterized by a mix of homeowners and renters, with a significant portion of the population relying on rental properties.

Fair Market Rent (FMR): For ZIP 87417, the Fair Market Rent for a one-bedroom apartment in fiscal year 2024 is set at $920. This figure reflects the government's assessment of what constitutes a reasonable rental price for low-income households.
Market Rent: According to the latest Census American Community Survey (ACS) data, the average market rent for a one-bedroom unit in ZIP 87417 is $875, indicating that rental prices are slightly below the FMR, which could be advantageous for landlords seeking to attract tenants.
Median Home Value: The median home value in ZIP 84117 stands at $229,329, suggesting that the area is relatively affordable compared to other parts of New Mexico and the nation.
Renter Share: With 25.8% of the population being renters, there is a notable demand for rental properties, providing opportunities for landlords and small-portfolio investors to capitalize on this segment of the housing market.
Median Income: The median household income in the area is $75,215, which supports the ability of residents to afford higher rents, especially when considering the lower-than-average cost of living in ZIP 87417.

The combination of slightly below-FMR market rents and a significant renter share presents a favorable environment for landlords and small-portfolio investors in ZIP 87417. The affordability of homes and the moderate income levels suggest that the area can sustain steady rental demand without placing undue financial strain on tenants. However, investors should remain vigilant about the potential for changes in local economic conditions and government policies that might affect rental prices and tenant eligibility.

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.