Location: Los Alamos County, NM | Metro: Los Alamos County, NM
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,710 | $430,164 | 0.4% | F |
| 3BR | $2,060 | $564,021 | 0.37% | F |
| 4BR | $2,620 | $665,521 | 0.39% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 87547, located in Los Alamos, NM, hinges upon the available data regarding the Fair Market Rent (FMR), home values, and demographic indicators such as renter percentage and median income. The FMR for the metro area in fiscal year 2026 is set at $1,630, which represents the rental price point that aligns with the federal guidelines for affordable housing. Given that there is no specific market rent figure provided, we must rely on the FMR to gauge potential rental yields.
The home value in ZIP 87547 stands at $589,980, indicating a relatively high-value property market. When comparing the FMR against the home value, it becomes evident that the rental yield is modest. A typical calculation would involve dividing the annual rental income by the property value, but without a precise market rent figure, we can only infer that the yield is likely lower than what might be expected in areas with higher market rents relative to home values. For instance, if a property were rented at the FMR of $1,630 per month, the annual rental income would be $19,560, leading to a yield of approximately 3.3% when compared to the $589,980 home value. This suggests a market that does not offer exceptionally high yields.
Moving to stability, ZIP 87547 has a 2.4% rate of renters, which is notably low. This figure implies that the majority of residents in this area are homeowners, not tenants. Additionally, the median household income of $156,444 is quite high, suggesting financial stability among the population. However, the lack of data on the average days on market (DOM) for rentals makes it challenging to fully assess the stability of the rental market. Typically, a low percentage of renters coupled with high median income points towards a stable market, as it indicates a robust local economy and less dependency on rental properties.
In conclusion, ZIP 87547 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The modest rental yield, derived from the FMR of $1,630 and the high home value of $589,980, contrasts with the financial stability suggested by the high median income and low renter percentage. These factors collectively indicate a market where long-term investment strategies focusing on consistent cash flow may be more appropriate than short-term flips aimed at maximizing immediate returns.
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.