Location: McKinley County, NM | Metro: McKinley County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 housing in ZIP code 87310, it's essential to know the specifics of the Subsidy Allocation Fair Market Rent (SAFMR) and how it interacts with the local rental market. For a two-bedroom apartment in this ZIP code, the SAFMR for fiscal year 2026 is set at $1,220. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent for such a unit.
The SAFMR is established based on the rental market conditions within the specific ZIP code, reflecting the actual costs landlords can expect when renting to a tenant with a voucher. However, the local market rent data for ZIP 87310 is currently unavailable, which makes it difficult to compare the SAFMR directly against what landlords might charge in the open market.
A landlord should be aware that the voucher system requires tenants to contribute a portion of their income toward the rent. Specifically, tenants are expected to pay 30% of their adjusted monthly income towards rent. Additionally, there are utility allowances that vary by household size and geographic location, but these do not factor into the base rent calculation. The utility allowance for a two-bedroom unit in ZIP 87310 is not specified here, so it must be obtained separately.
The reimbursement process works as follows: if a tenant's share plus the utility allowance does not meet the total rent, the difference is covered by the voucher up to the SAFMR of $1,220. If the total rent exceeds $1,220, the landlord will not receive additional funds from the voucher program. Therefore, the landlord must ensure that the rent charged, minus the tenant's contribution and utility allowance, does not exceed the SAFMR.
For example, if a tenant's share is $300 and the utility allowance is $200, the voucher would cover up to $720 of the remaining rent. Thus, the landlord could charge a maximum of $1,220 in total rent for a two-bedroom apartment without facing a reimbursement shortfall.
Given the lack of local market rent data, it's challenging to provide an exact surplus or shortfall figure. However, if the local market rent were lower than the SAFMR, landlords would likely see a surplus, meaning they could collect more in rent than the voucher pays, supplemented by the tenant's contribution. Conversely, if the local market rent is higher than $1,220, landlords would face a shortfall, collecting less than what the market might allow.
To maximize profits and minimize risks, landlords should align their rental pricing closely with the SAFMR of $1,220 for a two-bedroom unit in ZIP 87310. This ensures stable income while avoiding the complexities of dealing with shortfalls or surpluses.
Data Sources: FMR data from HUD (2027). 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.