Location: Santa Fe, NM | Metro: Albuquerque, 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 | $1,140 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,520 | $292,980 | 0.52% | F |
| 3BR | $1,910 | $395,976 | 0.48% | F |
| 4BR | $2,160 | $490,471 | 0.44% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 87015 in Edgewood, NM, are significant. Tenant turnover is likely to be high due to the disparity between the market rent of $950 and the Fair Market Rent (FMR) of $1450 for FY 2024. This discrepancy can lead to frequent changes in occupancy, which increases administrative burdens and costs associated with tenant screening and move-in processes.
Vacancy exposure is another concern. The Days on Market (DOM) for the area is not available, indicating a lack of recent sales data which could suggest either an oversaturated rental market or a less active one. Without specific DOM data, it's challenging to predict how long properties might remain vacant between tenants, leading to potential financial losses during these periods.
The deferred-maintenance exposure is also noteworthy. With a typical home value of $381,095 and a median income of $79,904, homeowners may struggle to keep up with necessary repairs and maintenance. For landlords, this could translate into higher renovation costs when acquiring properties or maintaining them to meet housing quality standards required by Section 8 programs.
Despite these risks, there are factors that mitigate some of the concerns. The renter share of the population in Edgewood, NM, is 9.2%, which is relatively high. High renter density often correlates with greater demand for rental properties, including those that accept Section 8 vouchers. This increased demand can help stabilize occupancy rates and reduce the likelihood of extended vacancy periods.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.