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 | $2,020 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,520 | $324,021 | 0.47% | F |
| 3BR | $2,020 | $521,813 | 0.39% | F |
| 4BR | $2,370 | $720,344 | 0.33% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 87047, which encompasses Sandia Park, NM, stands at $116,630. This figure provides a baseline for assessing housing affordability within the area. The market rate for rental properties in this ZIP code is reported at $1,220 according to the Census Bureau's American Community Survey (ACS).
To determine if a household can afford the market rate, we must consider the general rule that housing costs should not exceed 30% of a household's income. At $116,630, 30% of the median income equates to $35,989 annually, or approximately $3,000 per month. Given this, the $1,220 market rate is well within the affordable range for the typical household in Sandia Park.
However, the Housing Choice Voucher Program sets a different standard. For fiscal year 2024, the Fair Market Rent (FMR) for ZIP 87047 is $1,640. This amount represents the maximum rent that a voucher holder would pay under the program. Comparing this to the market rate of $1,220, it becomes evident that voucher holders could potentially secure better deals in the market, as the FMR exceeds the current market rate.
The ZIP code has a relatively low percentage of renters at 7.2%, with a total population of 5,402. This means that there are fewer potential tenants competing for the limited number of rental units available. As a result, landlords might find themselves in a competitive situation where attracting and retaining tenants requires offering more competitive pricing or amenities.
Landlords considering their strategy between accepting vouchers versus relying on cash-paying tenants should take note of these dynamics. While cash-paying tenants based on the median income can afford the market rate, the higher FMR for vouchers could be more attractive financially. However, the lower percentage of renters suggests a smaller pool of voucher holders, which could limit the opportunity to capitalize on this higher payment standard.
The takeaway for landlords is that they should evaluate both the financial benefits of accepting vouchers and the practical considerations of the local rental market. Given that the FMR exceeds the market rate, accepting vouchers could provide a steady income source at a rate above the market average. Yet, the decision should also factor in the administrative complexities and the limited pool of voucher holders in the area.
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.