Location: Catron County, NM | Metro: Catron County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 87827 for Section 8 purposes, follow this decision tree based on the specific data points provided.
1) Does the Fair Market Rent (FMR) of $1,040 cover the debt service on a $248,884 property?
If the answer is yes: The FMR of $1,040 must be sufficient to cover the monthly mortgage payment, property taxes, insurance, and other costs associated with owning the property. Calculate your total monthly debt service and compare it against the FMR. If the FMR exceeds your debt service, then this branch supports buying in ZIP 87827.
If the answer is no: The FMR of $1,040 does not cover the debt service on a $248,884 property. This means that relying solely on Section 8 tenants would not be financially viable, leading to a clear no on purchasing here for Section 8 purposes.
If it depends: The FMR might barely cover the debt service, making it a marginal case. Consider additional factors such as potential for rental increases, property appreciation, and local economic trends before deciding.
2) Is the market rent above, at, or below the FMR?
If market rent is above FMR: The market rent being higher than the FMR suggests that there is room for non-Section 8 tenants who could pay more. However, this also implies that Section 8 tenants might struggle to find housing, reducing demand for Section 8 properties. This scenario leans towards a cautious it depends.
If market rent is at FMR: This indicates a balanced market where the FMR aligns closely with what tenants are willing to pay. It provides a stable environment for Section 8 properties, supporting a yes to buying here.
If market rent is below FMR: This is favorable for Section 8 tenants and could mean a higher demand for subsidized housing. With market rent below FMR, it's a strong yes to purchasing for Section 8.
3) Are 46.5% renters plus the days on market (DOM) enough demand?
If the DOM is low, indicating quick turnover of rental listings: Combined with a 46.5% rental rate, this suggests high demand for rentals in general, including Section 8. A yes to buying here is supported.
If the DOM is high: This could indicate a glut in the rental market, making it harder to fill vacancies even with a decent rental rate. In this case, a no is advised due to insufficient demand.
If it depends: The exact DOM figure is missing, but a 46.5% rental rate alone doesn't provide enough context. Look into other local economic indicators and vacancy rates to make a more informed decision.
The decision to invest in ZIP 87827 for Section 8 properties hinges on these three key points. Ensure that the FMR covers your debt service, assess the market rent relative to FMR, and consider the overall rental demand and vacancy rates. With careful analysis, you can make a sound investment choice.
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.