Location: Los Alamos County, NM | Metro: Santa Fe, NM MSA
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 | $1,140 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,260 | $420,874 | 0.3% | F |
| 2BR | $1,570 | $614,943 | 0.26% | F |
| 3BR | $1,910 | $1,181,972 | 0.16% | F |
| 4BR | $2,560 | $1,487,213 | 0.17% | F |
| 5BR | $2,970 | $2,010,314 | 0.15% | F |
U.S. Census Bureau data (2024)
The ZIP code 87506, located in Santa Fe, NM, presents an interesting scenario for both renters and landlords when it comes to housing affordability. The median household income in this area stands at $96,511 according to recent Census ACS data. However, the market rate for rent is $1,117, which means that the average household would spend approximately 14% of their annual income on rent alone. This is within a reasonable range, but it highlights the financial strain many renters might face.
To further understand the dynamics, let’s consider the Housing Choice Voucher Program, commonly known as Section 8. The Fair Market Rent (FMR) standard for ZIP 87506 in fiscal year 2024 is set at $1,340. This figure represents the maximum amount that a voucher holder can pay towards rent. Comparing this to the market rate of $1,117, we see that landlords accepting vouchers can potentially receive higher payments than those relying solely on market-rate rents.
The difference between the market rate and the voucher payment standard is significant. Landlords who accept vouchers could benefit from receiving an additional $223 per unit, which translates into a substantial increase in monthly revenue.
ZIP 87506 has a rental population of around 2,650 individuals (16.2% of the total population of 16,372). This indicates a relatively small but competitive market for rentals. The affordability gap, where the market rate is lower than the voucher standard, suggests that landlords who accept vouchers will have a competitive edge in attracting tenants.
The takeaway for landlords considering their strategy in ZIP 87506 is clear: accepting Section 8 vouchers can be financially advantageous. Not only do vouchers offer a guaranteed source of income through government subsidies, but they also provide higher rent payments compared to the market rate. This makes properties more attractive to a segment of the population that might otherwise struggle to find affordable housing. For small-portfolio investors, focusing on voucher acceptance can help secure a steady stream of income while also positioning themselves favorably in a competitive rental market.
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.