Location: Taos County, NM | Metro: Taos 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 | $1,010 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,830 | $592,238 | 0.31% | F |
U.S. Census Bureau data (2024)
The ZIP code 87557, located in Taos County, NM, can serve as an effective diversifier within a Section 8 portfolio strategy. The median home value in this area is $373,400, which is slightly higher than the national average but aligns well with the context of the broader region. This makes it a valuable addition to a portfolio seeking to balance risk and reward across different markets.
A key factor supporting this classification is the 19.7% renter share. This indicates a significant portion of the population relies on rental properties, providing a stable demand for units managed under the Section 8 program. Additionally, the median income of $49,337 suggests a demographic that is likely to benefit from subsidized housing, further stabilizing the tenant pool and ensuring consistent occupancy.
Moreover, the ZIP code's real estate market demonstrates a low price-cut share at 0.1%, indicating that properties here maintain their value well, even when facing market pressures. The fact that the days on market (DOM) is not applicable (N/A) implies that properties in this area sell quickly once they become available, a sign of strong demand and healthy market dynamics.
While the area does not present itself as a cash-flow anchor due to the spread between the Fair Market Rent (FMR) of $1,500 for the metro area in fiscal year 2026 and the market rent of $1,189, it still offers a reasonable cash flow opportunity given the relatively low market rent. However, the primary appeal lies in its potential for appreciation and diversification benefits.
In conclusion, ZIP 87557 is best suited as a diversifier within a Section 8 portfolio strategy. Its combination of a modestly above-average median home value, a significant renter population, and strong market fundamentals make it an attractive option for investors looking to balance their exposure across various types of real estate markets.
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.