Location: Grant County, NM | Metro: Grant County, NM
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $89,354 | 1.13% | B |
| 3BR | $1,220 | $142,072 | 0.86% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 88023, located in Bayard, New Mexico, reveals a market that leans towards providing steady cash flow rather than high-yield/low-stability opportunities. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, while the market rent stands at $716. This suggests a moderate gap between FMR and market rents, indicating that properties here can generate reasonable returns without the extreme risk associated with areas where FMR significantly exceeds market rents.
The median home value in ZIP 88023 is $108,511, which is relatively low. This figure supports the idea of a steady cash flow environment because it implies that property values are stable and less likely to experience sharp fluctuations. Furthermore, the area has a substantial 40.2% of residents who are renters, ensuring a consistent demand for rental properties. However, the lack of data on the average days on market (DOM) indicates some uncertainty regarding how quickly properties might be rented out, which could impact cash flow stability.
The median household income in the area is $34,477, which is another key factor influencing the market's stability. While this income level is modest, it aligns well with the market rent of $716, making it feasible for renters to afford housing costs. This alignment between income levels and rental rates is crucial for maintaining a steady occupancy rate, which directly contributes to stable cash flows.
In summary, ZIP 88023 presents itself as a steady-cashflow zone due to its moderate gap between FMR and market rents, low but stable home values, significant rental population, and income levels that support current rental rates. Landlords and small-portfolio investors should expect reliable returns rather than speculative high yields.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.