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 |
|---|---|---|---|---|
| 2BR | $1,010 | $268,800 | 0.38% | F |
| 3BR | $1,410 | $375,850 | 0.38% | F |
U.S. Census Bureau data (2024)
The ZIP code 88325, located in Alamogordo, NM, stands out due to its unique demographic and economic characteristics. With a population of just 1,370 residents, it has a notably low rental rate at only 1.9%. The median income in this area is relatively high at $97,955, which contrasts sharply with the median home value of $338,163. This suggests that homeownership is a significant factor in the local economy.
In terms of Section 8 voucher economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $970. However, the market rent data is currently unavailable, making it difficult to assess the exact impact of Section 8 vouchers on the local rental market. Despite this gap in information, the low rental rate indicates that there may be limited opportunities for landlords to participate in the Section 8 program in this ZIP code.
The data signature for ZIP 88325 reads as stable. The high median income coupled with the median home value suggests a community where homeownership is common and financially feasible for most residents. The low percentage of renters also points towards a stable housing market with fewer fluctuations compared to areas with higher rental rates. While the lack of current market rent data introduces some uncertainty, the overall trend indicates a steady environment for both homeowners and landlords.
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.