Location: Farmington, NM | Metro: Farmington, NM MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 87499, located in the Farmington, NM MSA, reveals several key points that can inform investment decisions. The HUD Fair Market Rent (FMR) for this area is set at $930 for the fiscal year 2024. This figure is significantly lower than the market rent of $1,113 as reported by the Census American Community Survey (ACS), indicating that voucher tenants would typically cashflow at the FMR rate but only marginally given the current market conditions.
To further analyze the rental market, it's important to note that the median home value in ZIP 87499 is not available, which makes deriving an exact rent-to-price ratio challenging. However, the absence of a median home value suggests that the area may be predominantly rental-focused, which could imply a strong demand for rental properties.
The days on market (DOM) and the percentage of price cuts are also not available, but these metrics are crucial for understanding the dynamics between renting and buying. Since the data is unavailable, we must rely on other indicators such as the disparity between the FMR and market rent to gauge the strength of the rental market. Given the higher market rent, there is likely a competitive landscape where premium units or those that offer better amenities could command rents closer to the market rate, thus providing a better cashflow scenario for landlords.
In conclusion, while voucher tenants will generally cashflow at the FMR rate, the most compelling angle for Section 8 investors in ZIP 87499 is stability. The consistent demand for rental properties and the slight premium over FMR that can be charged for quality units make this a reliable investment option.
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.