Location: Lincoln County, NM | Metro: Lincoln County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The ZIP code 88346, located in Lincoln County, NM, can serve as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the spread between the Fair Market Rent (FMR) for the metro area in fiscal year 2026, which is $970, and the current market rent of $953. Additionally, the median home value in the area stands at $239,158, indicating that properties here are relatively affordable compared to other markets.
The slight difference between the FMR and market rent suggests that landlords in 88346 can expect stable cash flows without significant risk of losing tenants due to higher rents. The FMR is set by HUD to ensure that rents do not exceed what is considered fair and reasonable for the area, making it a reliable benchmark for rental pricing. Given that the FMR is only slightly above the market rent, landlords can confidently set their rents at or near the FMR level, knowing they will attract tenants who qualify for Section 8 assistance.
Furthermore, the median income in 88346 is $33,594, which aligns well with the income levels of potential Section 8 tenants. This ensures a steady stream of qualified applicants for rental properties, reducing vacancy rates and increasing the likelihood of consistent cash flow. The 36.3% renter share also indicates a robust demand for rental housing, making 88346 an attractive location for landlords focused on generating reliable rental income.
In conclusion, 88346 offers a solid foundation for a Section 8 portfolio strategy due to its stable rental market, reasonable home values, and alignment with tenant income levels. Landlords can expect predictable cash flows and a strong pool of potential tenants, making it an ideal choice for those looking to anchor their investment portfolios in a secure and dependable market.
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.