Section 8 Fair Market Rent (FMR) for ZIP 87732 - 2027
Location: Mora County, NM | Metro: Mora County, NM
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $810 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$69,421
To determine if you should buy in ZIP code 87732 for Section 8 investment, follow this decision tree:
- 1) Does the Fair Market Rent (FMR) of $970 cover the debt service on a property?
- If yes: Proceed to the next question.
- If no: Do not invest in this area as the rental income will not be sufficient to meet financial obligations.
- 2) How does the market rent of $1,123 compare to the FMR?
- If above FMR: The area offers higher potential returns, but the reliance on Section 8 may decrease. Consider other investment strategies.
- If at FMR: The market rent matches the FMR, making it suitable for Section 8 investments without significant risk.
- If below FMR: This scenario is unlikely given the provided numbers, but if it were true, it would indicate that Section 8 might not be competitive in this market.
- 3) Is there enough demand with 18.1% of residents renting and an unknown number of days on the market (DOM)?
- If there is a high percentage of renters and low DOM: There is strong demand, making the ZIP code a good candidate for Section 8 investment.
- If there is a high percentage of renters but high DOM: Demand exists, but competition is stiff. It depends on your ability to attract tenants quickly.
- If there is a low percentage of renters: The demand for rentals is weak, which may lead to difficulties in securing Section 8 tenants. Avoid investing in this area unless other factors compensate for the low demand.
In summary, the ZIP code 87732 presents a mixed picture for Section 8 investment. The FMR needs to be analyzed against the specific debt service of the properties you're considering. Given that the market rent is higher than the FMR, it suggests that while Section 8 can be a viable option, there are opportunities for higher rents. However, the strength of the rental demand hinges on the days on the market, which is currently unknown. If the rental market is active, the investment could be worthwhile; otherwise, it may be better to look elsewhere.
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.