Location: Taos County, NM | Metro: Rio Arriba County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 87549, located in Taos County, New Mexico, reveals several key points that are crucial for landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the area, as set by HUD for fiscal year 2026, is $990. However, without specific market rent data, it's challenging to compare these figures directly. If the market rent is below $990, landlords may find it difficult to attract tenants willing to pay the FMR, especially if the cost of maintenance and property management is factored in.
Regarding the affordability of acquisition, the lack of detailed information on the median home value, days on market (DOM), and the percentage of homes that have been subject to price cuts, makes it hard to give a precise assessment. Typically, lower median home values, shorter DOM, and a smaller percentage of price cuts indicate a more favorable environment for purchasing properties at affordable prices. Landlords should conduct further research into local real estate trends to determine if the acquisition costs align with their investment strategies.
The third point concerns tenant demand. With a total population of 933, only 5.6% of which are renters, the potential tenant pool is relatively small. This could mean fierce competition among landlords for the limited number of tenants, which might put downward pressure on rental rates. Additionally, a low renter share suggests that the majority of residents own their homes, possibly indicating a preference for homeownership over renting in the area.
Verdict: While the Fair Market Rent of $990 provides a benchmark for rental pricing, the lack of market-specific data makes it difficult to definitively assess the viability of rental investments in ZIP 87549. The small population and low renter share suggest a limited tenant base, which could challenge landlords' ability to fill vacancies and maintain rental income. Prospective investors should proceed with caution, ensuring they gather comprehensive local real estate and demographic data before making any decisions.
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.