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)
41.5% of the residents in ZIP code 87420 are renters, indicating a significant demand for rental properties. $692 is the reported market rent based on Census ACS data, which is notably lower than the $880 Fair Market Rent (FMR) for the area as of fiscal year 2024. This discrepancy suggests that landlords could potentially increase their rents to align more closely with the FMR without alienating tenants, given the local economic conditions. However, the median income of $36,335 must be considered when setting rent prices, as it represents the financial capacity of the average household. The lack of available data on days on market (DOM) and the percentage of price-cut shares indicates an absence of recent sales activity, which might point towards a stable housing market where property values are less likely to fluctuate dramatically. In conclusion, the ZIP 87420 presents a viable opportunity for landlords and small-portfolio investors, particularly those interested in Section 8 participation, due to the high renter share and favorable FMR compared to the current market rent.
Section 8 Verdict: Acceptable for investment, given the substantial renter base and potential to adjust rents closer to the FMR.
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.