Section 8 Fair Market Rent (FMR) for ZIP 88101 - 2027

Investment Score for ZIP 88101

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$810
1 Bedroom	$900
2 Bedrooms	$1,160
3 Bedrooms	$1,530
4 Bedrooms	$1,900
5 Bedrooms	$2,204
6 Bedrooms	$2,468
7 Bedrooms	$2,665
8 Bedrooms	$2,798

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,160	$114,590	1.01%	B
3BR	$1,530	$208,199	0.73%	D
4BR	$1,900	$281,684	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 88101 (Clovis, NM) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 88101 in Clovis, NM, is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $1140, which represents approximately 24.2% of the median household income of $56,587. This suggests that the rent for a two-bedroom unit is relatively affordable compared to the local median income. However, it is important to note that the actual rental prices in the area can vary significantly. The Zillow median price for a two-bedroom home in this ZIP code is $113,371, indicating a price-to-FMR ratio of 8.3x. This high ratio implies that the actual rental prices might be higher than the FMR, potentially creating constraints for voucher holders who are limited to paying only up to the FMR rate. #### Affordability & Renter Profile ZIP code 88101 has a population of 44,846, with 38.2% of residents being renters. The occupancy rate stands at 86.9%, suggesting that there is a reasonable demand for rental properties but also some availability. Given that the median household income is $56,587, the rent for a two-bedroom unit at $1140 is quite manageable for many households. However, the high price-to-FMR ratio indicates that the actual rental prices could be challenging for low-income families, especially those relying on Section 8 vouchers. These families would likely face difficulties finding landlords willing to accept the voucher due to the discrepancy between the FMR and the actual market rates. #### Investor Angle From an investor's perspective, the ZIP code 88101 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1140, which is lower than the Zillow median price of $113,371, indicating that the actual rental prices are much higher than the FMR. This means that investors who purchase properties at the Zillow median price would have to consider whether they can find tenants willing to pay the FMR rate or if they will need to rely on non-voucher tenants who can afford higher rents. If an investor purchases a property at the Zillow median price and aims to rent it out at the FMR, they would likely face negative cash flow due to the high price-to-FMR ratio. In terms of investment grade, the ZIP code 88101 appears to be moderately risky for Section 8-focused investors. While there is a significant demand for rental properties, the high actual rental prices relative to the FMR suggest that finding tenants who can only pay the FMR might be difficult. Investors should carefully evaluate their ability to manage properties at these rates or consider diversifying their tenant base to include non-voucher holders. #### Specific Actionable Insights 1. **Target Non-Voucher Tenants**: Given the high price-to-FMR ratio, investors should focus on attracting tenants who can afford to pay above the FMR. This strategy would help mitigate the risk of negative cash flow and ensure a steady stream of income. For example, targeting tenants who earn closer to the median household income of $56,587 would be more feasible. 2. **Consider Lower-Rent Properties**: Investors should look into purchasing properties that are priced below the Zillow median. A property priced at around $80,000, for instance, would be more aligned with the FMR and provide better cash flow potential when rented out at the FMR rate. This approach would require careful market research to identify such opportunities. 3. **Diversify Property Types**: Since the FMR for a three-bedroom unit is $1480 and four-bedroom units are $1910, investors might want to consider diversifying their portfolio to include larger units. Larger units often command higher rents, which could be more in line with the actual market prices. Additionally, larger units may attract families with children, who are often eligible for higher voucher amounts. #### Bottom Line Based on the provided data, the ZIP code 88101 is not recommended for Section 8-focused investors looking for immediate cash flow positivity. The high price-to-FMR ratio suggests that properties purchased at the Zillow median price would likely result in negative cash flow when rented out at the FMR. Therefore, the recommendation is to **Skip** this ZIP code for now unless investors are willing to target non-voucher tenants or invest in properties priced significantly below the Zillow median.

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.