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 | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $176,301 | 0.75% | D |
U.S. Census Bureau data (2024)
The ZIP code 88065 presents several challenges for landlords considering Section 8 investments. Firstly, tenant turnover could be problematic due to the disparity between the market rent and the Fair Market Rent (FMR) of $1,080 set for FY 2026 in the metro area. If market rents are significantly higher, tenants might struggle to afford them, leading to frequent moves and higher vacancy rates.
Vacancy exposure is another concern. With an unknown number of days on the market (DOM), it's difficult to predict how long properties might remain vacant. A high DOM could mean that landlords face extended periods without rental income, which can strain cash flow and overall profitability.
Deferred maintenance is also a risk factor. Given the typical home value of $178,334 and a median income of $47,031, many residents may not have the financial resources to maintain their homes adequately. This could result in higher repair costs and more frequent maintenance requests for landlords, impacting their bottom line.
However, these risks are offset by the high concentration of renters in the area. The 27.4% renter share indicates a significant portion of the population relies on rental housing, often leading to higher demand for Section 8 vouchers. This demand can help ensure a steady stream of qualified tenants who are committed to paying their rent through the voucher program.
In conclusion, the risks associated with tenant turnover, vacancy exposure, and deferred maintenance are present but manageable in ZIP 88065. The high renter density provides a strong counterbalance, making the area a moderate risk for a first-time Section 8 landlord.
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.