Location: Rio Arriba County, NM | Metro: Rio Arriba County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
The ZIP code 87582 presents several challenges for landlords and small-portfolio investors considering Section 8 investments. Tenant turnover is a significant concern, as the market rent is not available but the Fair Market Rent (FMR) for the area is set at $1,020 for fiscal year 2026. This can lead to higher administrative costs associated with frequent tenant changes, which impacts the bottom line. Additionally, vacancy exposure is a risk due to the lack of data on the average days on market (DOM), making it difficult to predict how quickly units will fill once they become vacant.
The deferred maintenance exposure is another issue, given the absence of specific data on the typical home value and median income in the area. Without these figures, it's challenging to assess the likelihood that tenants will maintain the property to a high standard. The potential for increased maintenance costs can be substantial if the homes are older or in need of repairs, and the tenants do not have the financial means to keep them up.
However, there are mitigating factors that reduce some of these risks. With a 33.5% renter share, the area has a high concentration of renters, which typically translates into strong demand for rental properties, including those accepting Section 8 vouchers. This high renter density can help ensure that vacancies are filled promptly, reducing the overall risk of prolonged vacancy periods.
In conclusion, despite the challenges posed by uncertain market conditions and potential maintenance issues, the high renter density in ZIP 87582 makes it a moderate risk for a first-time Section 8 landlord. The strong demand for rentals helps offset some of the risks involved with this type of investment.
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.