Section 8 Fair Market Rent (FMR) for ZIP 88263 - 2027
Location: Eddy County, NM | Metro: Eddy County, NM
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,060 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$N/A
A skeptical investor might raise several concerns regarding ZIP 88263 in Malaga, NM:
- Will Fair Market Rent ($1,200 for the metro area in FY 2026) cover the mortgage on a home in ZIP 88263? The median home value in ZIP 88263 is $273,100, according to recent data. Assuming a typical mortgage rate of around 5%, the monthly mortgage payment on a $273,100 home would be approximately $1,450. This is higher than the projected Fair Market Rent of $1,200, suggesting that the rent alone may not cover the mortgage without additional income sources.
- Is there enough renter demand at 53.8%? The rental demand in ZIP 88263 is relatively low at 53.8%. However, the stability of rental prices between 2025 and 2025 indicates a steady demand. The 2-bedroom unit's FMR remained at $1,050 during this period, showing little fluctuation. This suggests that while demand may not be high, it is consistent enough to maintain rental rates.
- Will vouchers keep pace with market rents? The FMR for a 2-bedroom unit in ZIP 88263 is currently $1,050. If the government adjusts vouchers to align with these FMRs, they should cover a significant portion of the market rent. However, the data does not provide specific details on voucher adjustments in this ZIP code, so it remains uncertain whether vouchers will fully cover the cost of renting a standard unit.
The data highlights both the challenges and opportunities in ZIP 88263. While the Fair Market Rent may not fully cover the mortgage on a median-priced home, the stable rental market and consistent demand indicate a reliable investment environment. Vouchers could play a crucial role in supporting renter affordability, but their alignment with market rents needs further scrutiny.
Data Sources: FMR data from HUD (2027). 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.