Section 8 Fair Market Rent (FMR) for ZIP 87538 - 2027
Location: San Miguel County, NM | Metro: San Miguel County, NM
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $880 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$N/A
To determine if you should buy in ZIP code 87538 for Section 8 investment, follow this decision tree:
- Does FMR $1,010 (metro FY 2026) clear debt service on a $294,372 property?
- Yes: The Fair Market Rent (FMR) of $1,010 is sufficient to cover the monthly mortgage payment on a property valued at $294,372, assuming standard financing terms.
- No: If the monthly debt service exceeds $1,010, then the FMR will not support the investment, making it unfeasible.
- Is market rent N/A (N/A) above, at, or below FMR?
- Above FMR: This would indicate that the local rental market is stronger than the FMR suggests, potentially allowing for higher rents outside of Section 8.
- At FMR: Market rents align with the FMR, meaning Section 8 tenants can afford the rent without much difference from non-Section 8 rates.
- Below FMR: Market rents are lower than the FMR, which could suggest that the area is undervalued and might be a good opportunity for Section 8 investment.
- Are 0.0% renters + N/A-day DOM enough demand?
- It Depends: With 0.0% of renters and an unknown number of days on the market (DOM), there's insufficient data to assess demand. However, the lack of renters might imply low competition, but it also indicates a potentially weak rental market. To make a decision, investigate further into the reasons behind these figures.
In conclusion, the feasibility of purchasing in ZIP 87538 for Section 8 investment hinges on whether the FMR covers the debt service, the relationship between market rents and FMR, and the strength of rental demand. The current data suggests that while the FMR is adequate for covering debt service, there is a critical lack of information on market rents and rental demand.
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.