Location: McKinley County, NM | Metro: McKinley County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 housing in ZIP code 87312, it's crucial to know the Subsidy Allocation Fair Market Rent (SAFMR) for a two-bedroom apartment, which is set at $1,150 per month for fiscal year 2026. This figure represents the maximum amount that the housing authority will pay on behalf of eligible tenants under the Section 8 program. However, without specific data on local market rents, we can only work with the SAFMR to provide a detailed analysis.
The SAFMR for ZIP 87312 indicates that the subsidy rate is specifically tailored for this area, reflecting local housing conditions and costs. Landlords participating in the Section 8 program receive payments from the housing authority to cover the difference between the tenant's contribution and the total rent. The tenant's portion is typically 30% of their adjusted income, but there are minimum and maximum limits set by the federal government.
Let's walk through an example to illustrate how the voucher payment works. Assume a tenant has an adjusted monthly income of $2,000. Their contribution would be 30% of this amount, equating to $600. If the total rent for a two-bedroom unit is $1,150, the housing authority would cover the remaining $550 ($1,150 - $600).
In addition to the base rent, utility allowances also play a role in the overall compensation. Utility allowances vary based on the region and type of dwelling, but they do not exceed the total rent amount. For simplicity, let's assume a utility allowance of $200. This means the total compensation a landlord could receive for a two-bedroom unit might be $1,350 ($1,150 + $200).
Given the lack of specific local market rent data, we cannot accurately determine if there is a surplus or a gap between the voucher reimbursement and the market rates. However, if the market rent were higher than the SAFMR, landlords would face a shortfall, requiring them to either accept lower rent or seek non-Section 8 tenants. Conversely, if the market rent is lower than the SAFMR, landlords could benefit from a surplus, receiving more than the standard market rate.
In conclusion, for ZIP 87312, the SAFMR for a two-bedroom apartment is $1,150, and with a hypothetical utility allowance of $200, the potential reimbursement could reach $1,350. The actual economic impact depends on the comparison between this reimbursement and the prevailing market rents, which are currently unavailable for precise calculation.
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.