Location: Union County, NM | Metro: Harding County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The Union County, NM metro area, specifically ZIP code 88415, presents an interesting opportunity for Section 8 investors. According to HUD's Fair Market Rent (FMR) for fiscal year 2026, the FMR for the metro scope is set at $970. This figure contrasts sharply with the market rent of $673, as reported by the Census ACS.
Voucher tenants in ZIP 88415 will cashflow comfortably at the HUD FMR. The difference between the HUD FMR and the actual market rent indicates that landlords can expect a positive cash flow when renting to voucher holders. This is particularly beneficial given the lower market rent, which means that properties rented through vouchers can still be priced below the HUD FMR while maintaining profitability.
The median home value in ZIP 88415 is $110,990, leading to a rent-to-price ratio of approximately 6.1%. This ratio is calculated by dividing the annual rent ($673 * 12 months) by the median home value. A low rent-to-price ratio suggests that the housing market in this area is undervalued relative to rental income, making it attractive for buy-and-hold investors looking for stable cash flow.
Note that the data does not provide specifics on the median Days on Market (DOM) or the percentage of homes that have had their prices cut. However, these metrics would typically be relevant in assessing the local real estate market's health and the potential for appreciation. In the absence of these figures, the focus remains on the strong cashflow potential.
The strongest investor angle in ZIP 88415 is cashflow. Given the significant gap between the HUD FMR and the market rent, investors can secure positive cashflow from voucher tenants, making it an ideal location for those prioritizing steady income over short-term appreciation or long-term stability.
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.