Location: San Miguel County, NM | Metro: Harding County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 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)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,020 for ZIP 87746 in fiscal year 2026 will adequately cover the mortgage on a typical home in the area. The data does not provide specific figures for median home prices or average mortgage payments, making it difficult to definitively answer this concern. However, it's crucial to consider that the FMR is designed to reflect the market conditions, including housing costs, which suggests that rental income should align closely with these figures.
The next objection could be whether the rental demand at 22.4% is sufficient to support investment in the area. This percentage indicates the share of households renting in ZIP 87746. While this figure is relatively low compared to some metropolitan areas, it still represents a significant portion of potential tenants. It's important to note that the success of rental properties also depends on factors such as vacancy rates, which are not provided here. Nonetheless, the presence of any rental demand signifies an opportunity for those willing to cater to the local market needs.
A final concern might be whether Housing Choice Vouchers will keep pace with the market rents in ZIP 87746. The data does not specify the current or projected voucher amounts for this ZIP code, leaving this question unanswered. Generally, voucher programs aim to adjust their payment standards to match the FMR, but local variations can occur. Landlords and investors should monitor local housing authority announcements and trends in voucher utilization to ensure they are prepared for any changes.
In summary, while the data does not fully resolve every concern regarding the viability of rental investments in ZIP 87746, it does provide a starting point for analysis. Investors must consider the FMR as a guideline for setting competitive rental prices and recognize that even a modest rental demand can sustain a well-managed property. For voucher recipients, continuous monitoring of program adjustments is advised to align with market conditions.
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.