Location: McKinley County, NM | Metro: McKinley County, NM
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 | $820 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $240,171 | 0.59% | F |
| 4BR | $1,550 | $317,205 | 0.49% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 87301 are straightforward but require careful consideration to ensure financial viability for landlords. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,110. This figure represents the maximum amount that the government will reimburse for a unit of this size.
In contrast, the local market rent for a similar two-bedroom property is listed at $930 according to the latest Census ACS data. This discrepancy highlights the potential financial incentives and challenges associated with renting to tenants with vouchers.
A landlord participating in the Section 8 program can expect the following reimbursement structure:
Thus, the total reimbursement a landlord can receive for a two-bedroom apartment under the Section 8 program would be the sum of the tenant's contribution and the utility allowance, which in this case amounts to $450 ($300 tenant contribution + $150 utility allowance).
However, the housing authority will only reimburse up to the SAFMR of $1,110. Therefore, the actual reimbursement received by the landlord would be the higher of the tenant's portion plus utility allowance or the local market rent, whichever is lower. In this scenario, the local market rent of $930 is lower than the SAFMR, so the landlord would receive $930 as the reimbursement from the housing authority.
This leaves a surplus of $480 per month for the landlord when considering the combined tenant payment and utility allowance. Essentially, the landlord receives the local market rent of $930, while the tenant contributes $300 and the utility allowance adds another $150, totaling $1,080. Since the reimbursement is capped at $930, the landlord retains the difference between the reimbursement and the tenant's actual contribution plus utility allowance.
In summary, landlords in ZIP 87301 who accept Section 8 vouchers for a two-bedroom apartment will see a reimbursement that matches the local market rent of $930, resulting in a surplus of $480 above the tenant's share and utility allowance.
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.