Location: Rio Arriba County, NM | Metro: Rio Arriba County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The ZIP code 87520, located in Rio Arriba County, NM, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) for the metro area and the actual market rent.
The FMR for the 87520 metro area in fiscal year 2026 is set at $970, while the average market rent stands at $570. This $400 difference indicates that properties in this ZIP code can potentially generate higher rental income when participating in the Section 8 program. Additionally, the median home value in 87520 is $327,375, which means that the initial investment is relatively low compared to other areas, making it easier to achieve positive cash flow.
Despite the lower median income of $38,889, the 13.8% renter share suggests that there is a sufficient number of potential tenants who qualify for the Section 8 program. Furthermore, the 0.1% price-cut share and N/A-day days on market (DOM) indicate that the housing market in this area is stable, with minimal need for price reductions or extended marketing periods.
In summary, ZIP 87520 provides a solid foundation for a Section 8 portfolio due to its favorable cash flow potential, driven by the substantial difference between FMR and market rents. It also offers stability and a manageable entry point for small-portfolio investors and landlords looking to diversify their holdings in a region with steady demand for affordable housing.
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.