Location: Taos County, NM | Metro: Taos County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,620 |
| 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 Section 8 market in ZIP code 87580, located in Taos County, New Mexico, presents a unique set of challenges and opportunities for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1,280 per month for the fiscal year 2026. However, the lack of available market rent data makes it difficult to provide a direct comparison. Despite this, we can infer that voucher tenants will likely cashflow at the FMR rate, given the typical dynamics of the housing market in such areas.
The median home value in ZIP 87580 is $584,384, which provides us with a basis to calculate the rent-to-price ratio. This ratio is crucial for understanding the economic viability of rental properties compared to their purchase price. With an FMR of $1,280, the annualized rent comes to approximately $15,360. Dividing this by the median home value yields a rent-to-price ratio of roughly 2.63%, indicating that the rental market is relatively weak compared to the high property values in the area.
The absence of day median Days on Market (DOM) and percentage of price cut data suggests that the local real estate market may be stable, with little need for significant price reductions or prolonged listing times. This stability can be beneficial for both renters and buyers, providing a predictable environment for investment decisions.
In conclusion, the strongest angle for investors in ZIP 87580 is likely stability. Given the high median home values and the limited data suggesting volatility, investors can expect a consistent market that supports long-term holding strategies over short-term gains. This stability ensures that investments in Section 8 properties will provide reliable income streams without the risks associated with rapidly fluctuating markets.
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.