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 | $970 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,920 | $300,212 | 0.64% | D |
| 4BR | $2,340 | $585,368 | 0.4% | F |
| 5BR | $2,714 | $881,487 | 0.31% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 79922 reveals a significant gap between the Fair Market Rent (FMR) set at $1410 for fiscal year 2024 and the actual market rent reported at $1,076 according to the Census ACS. This discrepancy amounts to a difference of $334, or approximately 31%, indicating that landlords in this area can potentially benefit from the higher rental subsidies provided through the Section 8 program.
The FMR exceeds the market rent, which means that voucher tenants can offer a yield advantage to landlords. Given the lower actual market rent of $1,076, landlords who accept Section 8 vouchers can receive a guaranteed payment of $1410, effectively increasing their rental income by 31%. This makes the ZIP code an attractive investment opportunity for those looking to maximize returns on their rental properties.
However, it's important to consider the broader context of ZIP 79922. The area has a relatively low percentage of renters at 7.1%, suggesting that the demand for rental properties might be limited. Additionally, the median home value stands at $416,897, while the median household income is $106,033. These figures indicate that homeownership is more common and financially feasible in the area, which could impact the pool of potential voucher tenants.
Despite these factors, the yield advantage remains compelling. Landlords should weigh the benefits of accepting Section 8 vouchers against the operational considerations such as tenant screening and compliance with HUD regulations. The higher subsidy can offset any potential drawbacks, making it a strategic choice for maximizing property profitability in ZIP 79922.
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.