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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,910 | $256,523 | 0.74% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 87035 stands at $44,938, which places significant constraints on how much a typical household can afford to spend on rent. The market rate for rent in this area is $933 per month, according to the Census Bureau's American Community Survey (ACS). This amount represents a substantial portion of a household's income, indicating that many residents might struggle to cover other living expenses while paying market-rate rent.
In comparison, the Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD) for ZIP code 87035 in fiscal year 2024 is $1,130. This figure is notably higher than the market rate, suggesting that households receiving Section 8 vouchers could potentially afford slightly more expensive housing options than those available at the current market rate.
With only 20.5% of the 7,539 population being renters, the competition among landlords is relatively low. However, this also means that there is a limited pool of potential tenants, making it crucial for landlords to understand the financial capabilities of the local rental market.
The affordability gap between the median income and the market rate rent ($933) versus the FMR ($1,130) highlights an opportunity for landlords. While some may prefer the certainty of cash-paying tenants, the reality is that many in ZIP 87035 cannot comfortably afford the market rate without assistance. Therefore, accepting Section 8 vouchers can open up access to a broader tenant base, ensuring better occupancy rates and stability in rental income.
Landlords should consider that the voucher program guarantees a certain level of payment, even if the market rate is lower. This can be particularly beneficial in areas where the population is relatively small and the number of renters is limited. By aligning their rental offerings with the FMR, landlords can tap into the government-subsidized rental market, securing reliable tenants who can pay the full rent through their vouchers.
In summary, the dynamics of ZIP 87035 suggest that landlords who are willing to accept Section 8 vouchers will have a competitive advantage in attracting and retaining tenants. This strategy can lead to higher occupancy and more predictable rental income compared to relying solely on cash-paying tenants who may find the market rate challenging to meet.
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.