Location: Lincoln County, NM | Metro: Albuquerque, NM MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 88318 reveals a significant gap between the Fair Market Rent (FMR) set by HUD and the actual market rent based on Census ACS data. For fiscal year 2024, the FMR for ZIP 88318 is $1,030, while the market rent stands at $434. This creates a $596 difference, which translates to a 137% premium for voucher tenants.
Given that FMR exceeds the market rent, landlords and small-portfolio investors should consider this a yield play. Voucher tenants provide a stable source of income that exceeds local market rates, ensuring higher returns on investment. This is particularly beneficial in ZIP 88318, where 31.3% of residents are renters and the median household income is $73,125. These factors indicate a population that may struggle to afford higher rents without assistance, making the Section 8 program an attractive option for securing tenancy.
The median home value is not reported, suggesting a limited number of homeowners in the area, further emphasizing the importance of rental properties. The higher FMR compared to market rent ensures that landlords receive above-average payments, potentially offsetting any perceived risks associated with the Section 8 program.
To summarize, the FMR of $1,030 versus the market rent of $434 presents a clear opportunity for landlords to maximize their yields while providing affordable housing options to eligible residents. This financial advantage is anchored by the ZIP code's demographic context, including its high proportion of renters and median income levels.
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.