Location: San Miguel County, 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 | $1,260 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,140 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,140 | $436,317 | 0.49% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 87056 reveals a specific scenario regarding the Section 8 cap rate, which is crucial for landlords and small-portfolio investors looking to understand the financial implications of participating in the program.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 87056 for FY 2024 is set at $1540 per month. To annualize this figure, we multiply by 12, resulting in an annual rent of $18,480. Given the median home value in the area is $426,379, we can calculate the implied gross yield by dividing the annualized FMR by the median home value. This calculation yields an implied gross yield of approximately 4.34% for properties rented under Section 8 guidelines.
In contrast, the market rent for a 2-bedroom apartment in ZIP 87056 is currently not available (N/A). However, it's important to note that if the market rent were higher than the FMR, the gross yield would be lower when using the Section 8 payment standard. The lack of market rent data makes it challenging to provide a direct comparison, but it suggests that the actual market conditions could offer different opportunities or challenges.
The 2.3% renter density in ZIP 87056 indicates a relatively low proportion of renters compared to homeowners, which might affect the demand for rental properties and thus the likelihood of securing tenants through the Section 8 program. Additionally, the absence of data regarding the days on market (DOM) for rentals means there is limited insight into how quickly properties are typically leased in this area.
Given the data, the Section 8 gross yield of 4.34% is a concrete figure that investors can use to assess potential returns. While the market rent is not available, the lower renter density and lack of DOM data suggest that relying on the Section 8 program might be more realistic for ensuring a steady stream of income from rental properties in ZIP 87056. Investors should consider these factors alongside their own financial goals and the specifics of local real estate trends to make informed decisions.
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.