Section 8 Fair Market Rent (FMR) for ZIP 87501 - 2027

Location: Santa Fe, NM | Metro: Santa Fe, NM MSA

Investment Score for ZIP 87501

Monthly Rent (2BR)

$1,960

Median Price (2BR)

$620,477

1% Rule

0.32%

Annual Yield

3.79%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,420
1 Bedroom	$1,600
2 Bedrooms	$1,960
3 Bedrooms	$2,410
4 Bedrooms	$2,580
5 Bedrooms	$2,993
6 Bedrooms	$3,352
7 Bedrooms	$3,620
8 Bedrooms	$3,801

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,600	$423,402	0.38%	F
2BR	$1,960	$620,477	0.32%	F
3BR	$2,410	$824,653	0.29%	F
4BR	$2,580	$1,238,900	0.21%	F
5BR	$2,993	$2,036,733	0.15%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

16,007

Median Household Income

$79,603

Housing Units

10,800

Renter Percentage

34.8%

Occupancy Rate

84.9%

Renter Occupied

3,187

To determine if a landlord should invest in ZIP 87501 (Santa Fe, NM) for Section 8 properties, follow this decision tree:

Step 1: Does the Fair Market Rent ($1,820) cover the debt service on a $730,189 property?

No. The fair market rent of $1,820 would not be sufficient to cover the debt service on a property valued at $730,189. A typical mortgage payment for such a property would be significantly higher than the FMR.

Step 2: Is the market rent ($2,151 ZORI) above, at, or below the FMR?

Yes, the market rent of $2,151 is above the FMR of $1,820. This indicates that the rental market is stronger than what the government deems as fair market value for Section 8 tenants.

Step 3: Are 34.8% of residents renters and is the days on market (DOM) of 43 days enough to ensure demand?

It depends. With 34.8% of residents being renters, there is a moderate level of demand for rental housing. However, the DOM of 43 days suggests that properties are generally occupied and there is less turnover, which could reduce opportunities for new Section 8 rentals.

If the landlord is considering a Section 8 investment, they must first acknowledge that the FMR does not cover the debt service on a $730,189 property. They should then consider whether the market rent exceeding the FMR provides an opportunity to attract non-Section 8 tenants who can pay more. Finally, the landlord needs to assess if the moderate rental rate and relatively low DOM indicate sufficient demand for their investment strategy to succeed.

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.