Location: Otero County, NM | Metro: Otero 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 | $710 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $880 | $199,470 | 0.44% | F |
| 2BR | $1,010 | $256,082 | 0.39% | F |
| 3BR | $1,410 | $345,723 | 0.41% | F |
| 4BR | $1,700 | $459,939 | 0.37% | F |
U.S. Census Bureau data (2024)
10.0% of residents in ZIP 88317, Cloudcroft, NM, are renters, indicating a smaller rental market compared to other areas. This statistic is important for landlords and small-portfolio investors considering the local demand. The $970 Fair Market Rent (FMR) set for the metro area for fiscal year 2026 represents the upper limit for rental payments covered under the Section 8 program. In contrast, the average market rent based on Census ACS data is $776, which is significantly lower than the FMR. This suggests that landlords can potentially charge higher rents for Section 8 tenants, thereby increasing profitability.
$298,870 is the median home value in Cloudcroft, NM, reflecting a relatively stable housing market. For those interested in property investment, this figure provides a benchmark for property values. Additionally, the median income of $136,250 indicates that the area has a strong economic base, which could support higher rents and reduce the risk of tenant default. However, it's worth noting that the price-cut share stands at 0.1%, suggesting that very few properties are being discounted, which might make it challenging to find good deals.
The lack of available data on days on market (DOM) implies that there might be limited recent sales activity, which could affect the ability to gauge current market trends accurately. Despite this, the disparity between the market rent of $776 and the Section 8 FMR of $970 presents an opportunity for landlords to secure steady rental income through the Section 8 program.
In conclusion, while the 10.0% renter share suggests a smaller market, the combination of a stable median home value of $298,870 and a high median income of $136,250 supports the potential profitability of Section 8 rentals. With the FMR exceeding the average market rent, landlords can benefit financially from participating in the program. The low price-cut share of 0.1% further reinforces the stability of the market. Therefore, for investors looking to enter the Section 8 rental market in Cloudcroft, NM, the opportunity is favorable.
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.