Location: Quay County, NM | Metro: Harding 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 | $1,060 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,820 | $190,849 | 0.95% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 88426 reveals a market that falls into the category of moderate yield and low stability. The Family Monthly Rent (FMR) for the metro area in fiscal year 2026 is set at $1,340, which is notably higher than the market rate of $1,055. This suggests that there is potential for higher rental yields if properties can qualify for Section 8 funding.
However, the stability indicators paint a different picture. Only 14.8% of residents are renters, which is a relatively low percentage. This implies that the demand for rental housing is not particularly robust. Additionally, the median household income is listed as $40,000, which could limit the number of eligible Section 8 tenants. The absence of data regarding the average days on market (DOM) further underscores the uncertainty around the rental market's health in this area.
The home value of $166,671 is another factor to consider. While this figure can provide a basis for calculating potential returns on investment, it does not directly correlate to the stability of rental income. Given the low percentage of renters and the limited income pool, landlords and small-portfolio investors should be cautious about relying solely on rental income from this ZIP code.
In conclusion, ZIP 88426 offers opportunities for higher rental yields through Section 8 participation, but the low stability factors suggest that it is not a reliable source for steady cash flow. Investors looking to balance risk and reward might find this area appealing for short-term flips rather than long-term rental investments.
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.