Location: Rio Arriba County, NM | Metro: Rio Arriba County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 87523 reveals a significant discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,260. However, the market rent in this area is currently unreported, which suggests that it may be higher than the FMR. This gap indicates that landlords who accept housing vouchers can expect to receive less rent than what the open market would command.
To quantify the impact of this gap, we must consider the potential difference between the FMR and the market rent. Since the market rent is not available, we cannot provide an exact dollar amount for the gap. But we can infer that the gap will likely be substantial, given the typical disparity between voucher rates and market rents in many areas.
The median income in ZIP 87523 is $23,395, which is notably low. With 0.0% of residents being renters and the median home value being unreported, it's clear that the majority of residents own their homes rather than renting. This context is crucial when considering the implications of the FMR versus market rent dynamics.
If the FMR were to exceed the market rent, which is not the case here due to the lack of market rent data, accepting voucher tenants could potentially increase rental yields. Landlords would benefit from receiving a higher rent than what the market demands, thus improving their financial returns. However, since the market rent is unreported, we assume it is higher than the FMR, making it a less favorable scenario for landlords.
In scenarios where the FMR is lower than the market rent, as is likely in ZIP 87523, landlords face a trade-off. They can either rent to voucher tenants at a rate below the market price or seek out non-voucher tenants willing to pay the higher market rent. The cost of housing voucher tenants below open-market rates means landlords must weigh the benefits of guaranteed payments from the government against the lower rent they will receive compared to the market rate.
This analysis underscores the importance of understanding local market conditions and the specific characteristics of ZIP 87523 before making investment decisions. Given the low median income and the high likelihood that market rents exceed the FMR, landlords should carefully evaluate the potential risks and rewards of participating in the Section 8 program.
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.