Location: Albuquerque, 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 | $1,070 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,450 |
| 5 Bedrooms | $2,842 |
| 6 Bedrooms | $3,183 |
| 7 Bedrooms | $3,438 |
| 8 Bedrooms | $3,610 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,210 | $121,348 | 1% | C |
| 2BR | $1,510 | $293,790 | 0.51% | F |
| 3BR | $2,080 | $377,675 | 0.55% | F |
| 4BR | $2,450 | $474,421 | 0.52% | F |
| 5BR | $2,842 | $591,988 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 87109, located in Albuquerque, NM, and part of Bernalillo County, hinge on understanding the SAFMR (Small Area Fair Market Rent) and how it interacts with the local rental market. For a two-bedroom apartment in FY 2024, the SAFMR is set at $1310. This figure is specific to this ZIP code, reflecting the unique housing cost dynamics within 87109.
In contrast, the local market rent for a similar unit is $1,388, as indicated by ZORI (Zillow Observed Rent Index). This means landlords in ZIP 87109 will see a difference between the SAFMR and the actual market rates when considering Section 8 participation.
A landlord receiving a Section 8 voucher payment should understand the components involved in the total reimbursement. The voucher itself covers the majority of the rent but not all. Tenants are required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500 for a tenant in this scenario, they would contribute $450 toward the monthly rent.
The remainder of the rent is subsidized by the government, up to the SAFMR limit. In this case, the government would cover $1310 minus the tenant's contribution of $450, which equals $860. This amount is paid directly to the landlord, ensuring that the total rent received does not exceed the SAFMR of $1310.
Utility allowances also play a role in the overall economics. These allowances vary based on the size of the unit and the region. For a two-bedroom apartment in ZIP 87109, the utility allowance might be around $300 per month, though this can fluctuate. This allowance is additional money provided to the tenant to cover utilities, but it does not increase the SAFMR cap.
When you combine the tenant's rent contribution of $450 with the government subsidy of $860, the total reimbursement to the landlord comes to $1310. This leaves a shortfall compared to the local market rent of $1,388. The gap, therefore, is $1,388 - $1310 = $78. Landlords must account for this $78 shortfall when renting to a Section 8 participant in ZIP 87109.
To summarize, landlords in ZIP 87109 who participate in the Section 8 program for a two-bedroom apartment will receive a total of $1310, including both the tenant's payment and the government subsidy. They will face a slight surplus of $78 if the local market rent is $1,388, but this surplus is not guaranteed and depends on the actual market conditions and tenant income levels.
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.