Location: Taos County, NM | Metro: Taos County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
U.S. Census Bureau data (2024)
The median income in ZIP code 87514 stands at $71,556, which provides a baseline for understanding the financial capabilities of households in this area. The market rate for rent, according to the Census ACS, is $1,544 per month. This figure represents the average rent that tenants are currently paying, giving landlords a clear target for their rental pricing.
In contrast, the Fair Market Rent (FMR) for ZIP 87514, set at $1,280 for fiscal year 2026, reflects the amount that housing authorities will pay on behalf of families with Section 8 vouchers. This means that landlords accepting vouchers must be prepared to receive $1,280 as the maximum monthly payment for their units, regardless of the actual market rate.
The disparity between the market rate ($1,544) and the voucher payment ($1,280) highlights a significant affordability gap for tenants. With only 19.0% of the 1,589 residents being renters, competition among landlords for these tenants is likely to be intense. Landlords who offer competitive rents closer to the FMR may attract more voucher holders, but they will also need to ensure that their properties meet the necessary standards to participate in the Section 8 program.
For landlords considering whether to accept Section 8 vouchers or focus on cash-paying tenants, the decision hinges on balancing the lower guaranteed rent payments with the potential for higher occupancy rates and less vacancy risk. Cash-paying tenants might offer higher rents, aligning closer with the market rate, but the limited number of renters in the area could mean a longer wait for suitable tenants. Accepting vouchers ensures a steady stream of income, albeit at a lower rate, and taps into a different segment of the rental market that may be underserved by the current offerings.
Takeaway: Landlords in ZIP 87514 should weigh the benefits of participating in the Section 8 program against the lower payment rates compared to the market. Given the affordability gap and the relatively low number of renters, embracing both voucher and cash-pay strategies could optimize rental income and minimize vacancy periods.
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.