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Lea County/Hobbs/88242

88242

ZIPSAFMR
Lea County, NM
Zillow

ZIP Investment Score

117Above average

095130300
BRFMR
Eff. Rent
0 BR$1,390$1,530
1 BR$1,400$1,540
2 BR$1,660$1,790
3 BR$2,090$2,150
4 BR$2,280$2,260
5 BR$2,622Not available
6 BR$3,015Not available
7 BR$3,468Not available
8 BR$3,988Not available

Purchase Price Calculator

Maximum purchase price
$204,077

Cost breakdown

+Likely effective rent$1,790
HUD FMR$1,660
Market rent$1,860
Est. payment standard (108%)Used$1,790
-Principal and interest-$1,032
Loan amount$163,261
Down payment$40,815
Rate6.50%
Term30 years
-Operating costs-$558
Property taxes-$204
Insurance-$175
Utilities$0
HOA$0
Management-$179
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$28,741(70.4% ROI)
Projected value
$219,768
Return breakdown
Property appreciation+$15,692
Loan principal paid down+$5,849
Rental cash flow+$7,200
5-year hold
+$49,248(120.7% ROI)
Projected value
$230,894
Return breakdown
Property appreciation+$26,817
Loan principal paid down+$10,431
Rental cash flow+$12,000
10-year hold
+$106,013(259.7% ROI)
Projected value
$261,236
Return breakdown
Property appreciation+$57,159
Loan principal paid down+$24,855
Rental cash flow+$24,000

Public Housing Authority

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Rolodex

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Market Alignment

Studio
0.74
1 BR
0.82
2 BR
0.89
3 BR
0.96
4 BR
1.01
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 88242 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 88242 (Hobbs, NM) is $1,660 a month. That is up 9.9% from $1,510 in FY 2026. Hobbs is in the Lea County, NM non-metropolitan FMR area. HUD also publishes the ZIP-level Small Area FMRs shown here, but unless the local housing authority has adopted them, vouchers are based on the county-wide two-bedroom FMR of $1,327. Among 13 ZIP codes in Lea County, 88242 has the highest two-bedroom rent (county range $1,200–$1,660). The median county two-bedroom FMR in New Mexico is $1,063, so ZIP 88242 is 56% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 88242
BedroomsFY 2027Change90–110% range
Studio$1,390+14.9%$1,251–$1,529
1BR$1,400+14.8%$1,260–$1,540
2BR$1,660+9.9%$1,494–$1,826
3BR$2,090+11.8%$1,881–$2,299
4BR$2,280+9.1%$2,052–$2,508

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 88242
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$1,390$1,400$1,660$2,090$2,280
FY 2026$1,210$1,220$1,510$1,870$2,090
FY 2025$860$920$1,210$1,490$1,710
FY 2024area FMR$801$889$1,168$1,487$1,642
FY 2023area FMR$688$776$1,021$1,319$1,463

Marked years use a different HUD benchmark than FY 2027, so they are not a like-for-like change.

Two-bedroom rent in nearby Lea County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 88242
88213$1,330−19.9%
88231$1,350−18.7%
88240$1,330−19.9%
88241$1,330−19.9%
88242Current$1,660—
88244$1,330−19.9%
88252$1,280−22.9%
88260$1,240−25.3%
88262$1,240−25.3%
88264$1,240−25.3%
88265$1,340−19.3%
88267$1,200−27.7%

Questions about ZIP 88242 rents

How much will Section 8 pay for a two-bedroom in ZIP 88242?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With the county-wide two-bedroom FMR of $1,327, which applies unless the housing authority uses Small Area FMRs, that basic range is $1,194 to $1,460 a month; under the ZIP-level Small Area FMR of $1,660 it would be $1,494 to $1,826. The voucher pays the lower of the payment standard or the gross rent, minus the tenant's share, which is usually about 30% of adjusted monthly income. Confirm the local housing authority's current schedule before underwriting.

Which HUD fair market rent area is ZIP 88242 in?

ZIP 88242 is in the Lea County, NM non-metropolitan FMR area. Small Area FMRs are optional here; the county-wide two-bedroom FMR is $1,327.

How much did fair market rent change in ZIP 88242 for FY 2027?

The two-bedroom FMR rose 9.9%, from $1,510 in FY 2026 to $1,660 in FY 2027. Since FY 2025 it has risen 37.2%.

When do FY 2027 fair market rents take effect?

HUD's FY 2027 fair market rents took effect on October 1, 2026. When FMRs change, housing authorities generally have up to three months to bring payment standards back within 90% to 110% of the new FMR.

Source: HUD FY 2027 Small Area Fair Market Rents and area FMRs. Payment-standard ranges are 90% to 110% of FMR, HUD's basic range, not a housing authority's published schedule. How payment standards are set

County fair market rentHobbs, NM fair market rentNM statewide rentsWhat is SAFMR?Data sources