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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $138,227 | 0.92% | C |
U.S. Census Bureau data (2024)
The rent math in ZIP 88043 does not align favorably with the Federal Market Rent (FMR) standards. The FMR for the area is set at $1,130 for fiscal year 2026, whereas the actual market rent is significantly lower at $545. This discrepancy suggests that landlords may struggle to meet the higher rent expectations required by Section 8 programs, leading to potential financial strain.
Regarding acquisition affordability, the median home value in ZIP 88043 stands at $108,006. However, with the lack of data on days on market (DOM) and the percentage of homes that have been price-cut, it's challenging to provide a comprehensive analysis. The absence of these metrics indicates a stable housing market, but without concrete figures, it's difficult to determine if there are frequent price reductions or extended listing times, which could affect the cost of acquiring properties.
Tenant demand in the area is limited. With a total population of 1,210, only 11.7% are renters. This low renter share implies a smaller pool of potential tenants, which could lead to competition among landlords for available Section 8 vouchers. Given the small number of residents, it might be necessary to expand the search radius to attract sufficient tenant interest.
In conclusion, ZIP 88043 presents a challenging environment for landlords and small-portfolio investors interested in Section 8 participation. The substantial gap between the FMR and market rent rates makes it difficult to achieve positive cash flow without subsidies. The limited availability of specific acquisition metrics hinders a full assessment of property costs, though the median home value is relatively low. Lastly, the low renter share suggests a competitive market for finding tenants, necessitating careful consideration of investment strategies and possibly looking beyond the immediate ZIP code for viable opportunities.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.