Location: Albuquerque, NM | Metro: Albuquerque, NM MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
The economics of Section 8 in ZIP code 87195, located in Albuquerque County, New Mexico, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1200 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the unique rental market conditions here.
To understand how much a landlord can expect to receive from a Section 8 voucher, it's essential to break down the components. A voucher holder typically pays 30% of their adjusted income towards rent. For simplicity, let's assume an average adjusted income of $1600 per month, which would mean the tenant portion of the rent would be $480. This leaves $720 to be covered by the housing authority, assuming the full SAFMR is utilized.
In addition to the base rent, there are utility allowances that can vary. However, these allowances are generally lower than the actual cost of utilities for most properties. Let's say the utility allowance is around $200 per month. This brings the total monthly reimbursement from the housing authority to $920 ($720 base rent + $200 utilities).
Given that the SAFMR is $1200, the reimbursement gap for a two-bedroom apartment in ZIP 87195 is $280 per month. This means landlords must either accept a lower effective rent or find ways to reduce operating costs to remain profitable. It's important to note that the local market rent is currently unavailable, which makes it difficult to compare the SAFMR against the broader market conditions in the area.
To summarize, in ZIP 87195, the typical reimbursement for a two-bedroom apartment under a Section 8 voucher is $920 per month, resulting in a $280 shortfall compared to the SAFMR. Landlords should carefully consider their expenses and potential revenue sources before deciding to participate in the program.
Data Sources: FMR data from HUD (2027).
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.