Location: San Miguel County, NM | Metro: Mora County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The ZIP code 87745 presents several challenges for potential Section 8 landlords. Tenant turnover is a significant concern due to the discrepancy between the market rent and the Fair Market Rent (FMR) of $1,010 for FY 2026 in the metro area. Landlords might find it difficult to attract tenants who can afford higher market rents, leading to frequent changes in occupancy. This instability can affect long-term property management and financial planning.
Vacancy exposure is another critical issue. With an unknown average number of days on the market (DOM), landlords cannot predict how long it will take to fill vacancies. Extended vacancy periods can lead to lost rental income and increased maintenance costs, which are particularly concerning when considering the typical home value of $358,190 and the median income of $39,130. The median income suggests that many residents rely heavily on assistance programs such as Section 8, which can make them more sensitive to changes in housing policies and funding availability.
The deferred-maintenance exposure is also noteworthy. Given the typical home value and median income, landlords must be prepared to invest in regular maintenance to ensure their properties meet the standards required by the Section 8 program. Failure to maintain the property can result in penalties and loss of participation in the program, which can significantly impact the financial viability of the investment.
However, these risks must be weighed against the relatively high proportion of renters in the area. Although the exact renter share is not specified, a 0.7% figure would typically indicate a lower risk of finding tenants who qualify for and use Section 8 vouchers. High renter density generally translates into higher demand for rental properties, including those that accept Section 8 vouchers. This demand can help stabilize occupancy rates and mitigate some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 87745 is moderate. While there are significant challenges related to tenant turnover and deferred maintenance, the potential for steady demand from qualified renters provides a counterbalance to these risks.
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.