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)
The ZIP code 87461 is located in a rural area of New Mexico, characterized by a small population of 1,307 residents. The rental market is relatively modest, with only 7.0% of the population being renters. This indicates a community where homeownership is prevalent, but it also means there is limited demand for rental properties. The median income in this area is $32,981, which suggests that the local economy is based on lower-paying jobs, possibly agriculture or small-scale industries typical of rural areas.
When considering investment opportunities in ZIP 87461, the Federal Market Rent (FMR) for Section 8 vouchers is a key metric. For fiscal year 2024, the FMR is set at $880. However, specific data on the market rent is not available, making it challenging to directly compare the FMR to the actual rent charged in the area. Given the low median income, it's reasonable to assume that market rents might be close to or slightly above the FMR, but without precise figures, this remains speculative.
For hands-off voucher operators, ZIP 87461 could present an opportunity. The low percentage of renters implies that there is less competition in the rental market, and those who do rent are likely to rely heavily on government assistance such as Section 8 vouchers. This makes properties eligible for the program attractive to investors seeking steady, government-backed rental income. On the other hand, for hands-on value-add buyers looking to improve properties and increase their rental value, the lack of detailed market data and the overall modest economic profile of the area suggest that there may be limited potential for significant rent increases or property appreciation.
In conclusion, ZIP 87461 is best suited for hands-off investors who can leverage the Section 8 program to ensure consistent cash flow. The limited data on market rents and the economic characteristics of the area make it a less appealing option for active investors aiming to add value through renovations or management improvements.
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.