Location: Cibola County, NM | Metro: Cibola County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
In ZIP code 87040, the Section 8 housing program operates under specific economic guidelines that affect landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $990. This figure represents the maximum amount that the government will pay on behalf of a tenant who qualifies for the Section 8 Housing Choice Voucher program.
The SAFMR is tailored specifically for this ZIP code, meaning it reflects the rental market conditions unique to the area. Since there's no data available for the local market rent, we can only compare against the SAFMR figure provided.
Landlords often wonder how much they will actually receive from a voucher once all factors are considered. The reimbursement process involves the tenant paying a portion of their income towards rent, typically 30%, while the voucher covers the remainder up to the SAFMR limit. Utility allowances are also part of the equation but are generally fixed rates per unit, which do not increase the total reimbursement beyond the SAFMR cap.
To illustrate, if a tenant's portion of the rent is $300, then the voucher would cover the difference up to the SAFMR of $990. In this case, the landlord would receive a total of $990, with the tenant contributing $300 and the voucher covering $690. It's important to note that utility allowances do not add to the total rent reimbursement; they are separate payments made directly to the tenant.
Given the SAFMR of $990 for a two-bedroom apartment in ZIP 87040, landlords should expect a reimbursement gap if the local market rent exceeds this amount. Conversely, if the market rent is below $990, landlords could see a surplus. However, without specific local market rent data, it's impossible to quantify the exact gap or surplus for ZIP 87040.
For landlords considering participating in the Section 8 program, understanding these economics is crucial. They must weigh the benefits of guaranteed rental payments against the potential limitations of the SAFMR cap and the administrative requirements of the program.
Data Sources: FMR data from HUD (2027). 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.