Location: Las Cruces, NM | Metro: El Paso, TX HUD Metro FMR Area
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 | $740 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $146,926 | 0.74% | D |
| 3BR | $1,470 | $206,570 | 0.71% | D |
| 4BR | $1,800 | $310,767 | 0.58% | F |
| 5BR | $2,088 | $440,126 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 79835 in Texas presents a moderate opportunity for landlords and small-portfolio investors interested in Section 8 tenants. With a population of 11,440, 22.8% of residents are renters, indicating a significant but not overwhelming presence of potential Section 8 tenants. The median household income stands at $45,924, which provides a benchmark for understanding the financial capabilities of the area's residents.
The market rent in this ZIP is $923 per month, representing approximately 20.1% of the median household income. This figure suggests that typical rent is relatively affordable compared to the average income level. However, the Fair Market Rent (FMR) for the area is set at $1060, as of FY 2024. This indicates that landlords may have some flexibility in setting rents slightly above the market rate without exceeding the voucher limits.
To determine if this ZIP has deep voucher demand, consider the percentage of renters and the difference between market rent and FMR. Given that only 22.8% of the population are renters, it implies that the tenant pool is not heavily dominated by renters. Consequently, the demand for Section 8 vouchers might be moderate rather than high. Landlords should also note that the FMR is higher than the current market rent, suggesting that there could be room for slight increases without deterring voucher holders.
A landlord in ZIP 79835 can expect a tenant profile that is financially constrained but still capable of meeting rental obligations with the help of Section 8 vouchers. These tenants will likely be seeking affordable housing options and may include families, individuals with disabilities, or seniors who qualify for assistance programs. It is important for landlords to understand that while these tenants rely on government subsidies, they are subject to rigorous screening processes and often have stable tenancy histories.
In conclusion, ZIP 79835 offers a balanced environment for landlords considering Section 8 tenants. While the demand for vouchers is present, it is not as intense as in areas with a higher percentage of renters. Landlords should prepare for tenants who require financial assistance but can provide stability and timely rent payments when supported by vouchers. Adjusting rents closer to the FMR of $1060 would align with the subsidy caps and attract a steady stream of qualified applicants.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.