Location: San Miguel 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 | $1,260 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,180 | $448,326 | 0.49% | F |
U.S. Census Bureau data (2024)
The market in ZIP code 87535 presents a dynamic scenario that is indicative of shifting housing pressures. With a Fair Market Rent (FMR) of $1540 for fiscal year 2024, it's clear that the rental market is priced above the average market rent of $1,325 as reported by the Census ACS. This suggests that there might be a slight premium on rental properties in the area, possibly due to higher demand or limited supply.
The median home value stands at $425,072. While this figure alone doesn't provide a complete picture of the housing market, when combined with the FMR and market rent data, it can imply a scenario where homeownership is becoming less affordable relative to renting. This could be driving more residents towards the rental market, thereby increasing the competition among renters and potentially driving up rental prices.
A 19.9% renter share indicates that nearly one in five households in the area are renters. This percentage, while not exceptionally high, does suggest a significant portion of the population relies on the rental market for housing. Over the long term, a sustained renter share could translate into ongoing housing pressure, particularly if the trend towards renting continues or if there is a lack of new rental units being built to meet demand.
The dynamics of the ZIP 87535 market reveal an environment where demand for rentals is strong, likely outpacing supply given the premium on FMR over market rent. However, without time-series data, we cannot definitively state whether this is a growing trend or a temporary fluctuation. The strong rental market, coupled with a high median home value, points towards a situation where affordability is a concern for potential homeowners, pushing them towards the rental sector and maintaining upward pressure on rental rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.