Location: Chaves County, NM | Metro: Chaves 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 | $830 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $123,010 | 0.83% | C |
| 3BR | $1,380 | $174,626 | 0.79% | D |
| 4BR | $1,520 | $199,246 | 0.76% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 88203, located in Roswell, NM, might question whether the Fair Market Rent (FMR) of $1,020 for the fiscal year 2026 will sufficiently cover the mortgage on a home priced at $141,993. To address this, consider that the median monthly mortgage payment for a home in this price range typically falls below $700, depending on interest rates and down payments. Thus, the FMR of $1,020 should comfortably cover the mortgage, leaving room for maintenance and other expenses.
The investor might also be concerned about the level of renter demand, which stands at 34.7%. While this figure is not exceptionally high, it is important to note that it represents a significant portion of the population. Additionally, the local economy, including industries such as healthcare, retail, and government, supports a steady demand for rental properties. This ensures that vacancies remain low, and landlords can maintain a consistent income stream.
Another objection could arise regarding whether Housing Choice Vouchers will keep up with the market rents, currently estimated at $1,358. The FMR is designed to reflect the average rent for a modest home in the area, but it does not always align perfectly with the actual market conditions. In ZIP 88203, while the FMR is lower than the market rent, it still provides a reasonable subsidy to tenants. Landlords should expect to receive a higher amount directly from the tenant to make up the difference between the voucher and the market rent. It's also worth noting that voucher holders often have stable incomes and are reliable tenants, reducing the risk of default.
Despite these points, it's crucial to recognize that the data does not provide a comprehensive view of every variable affecting rental investments. Interest rate fluctuations, changes in local employment, and shifts in housing policy can impact the financial viability of rental properties. However, based on the available data, the investment in ZIP 88203 appears to be a sound decision for those willing to engage in the rental market.
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.