Location: Santa Fe, NM | Metro: Santa Fe, NM MSA
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 | $1,230 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,380 | $275,583 | 0.5% | F |
| 2BR | $1,690 | $368,255 | 0.46% | F |
| 3BR | $2,080 | $491,378 | 0.42% | F |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP 87010, located in Cerrillos, NM, comes with several inherent risks that must be carefully considered. One significant issue is tenant turnover. The market rent for the area stands at $1,409, while the Fair Market Rent (FMR) for fiscal year 2024 is set at $1,560. This difference can lead to frequent tenant changes as some may seek better deals outside the voucher program. High turnover rates increase administrative costs and reduce overall profitability.
Vacancy exposure is another concern. The days on market (DOM) data is currently unavailable, which makes it difficult to predict how long a property might remain vacant. Given the uncertainty, landlords should prepare for potential periods where they may not have tenants occupying their units, leading to lost rental income.
Deferred maintenance is also a critical risk factor. With a typical home value of $399,584 and a median income of $60,000, residents may struggle to afford substantial repairs or upgrades. Landlords need to be prepared to cover these costs themselves, which can significantly impact their cash flow and property management expenses.
However, these risks are somewhat mitigated by the high renter share in the area, which stands at 41.6%. High renter density typically translates into higher demand for rental properties, including those that accept Section 8 vouchers. This ensures a steady stream of potential tenants, reducing the likelihood of prolonged vacancies.
The combination of these factors leads to a moderate risk assessment for a first-time Section 8 landlord in ZIP 87010. While there are challenges, particularly with tenant turnover and maintenance costs, the high renter share provides a buffer against vacancy exposure.
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.