Location: San Miguel County, NM | Metro: Santa Fe, NM MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,140 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
U.S. Census Bureau data (2024)
The median income in ZIP code 87552 stands at $53,688, which places significant constraints on the financial capabilities of households when it comes to housing costs. At the current market rate of $1,044 per month, a substantial portion of a household's income would need to be dedicated towards rent. To put this into perspective, a household earning the median income would spend approximately 24% of their gross monthly income on rent alone.
In comparison, the Fair Market Rent (FMR) set by the Housing Choice Voucher program for ZIP 87552 in fiscal year 2024 is $1,540. This amount is notably higher than the market rate, indicating that voucher holders have the potential to secure housing at rates above the typical market value. However, the discrepancy between the FMR and the actual market rate highlights an affordability gap for non-voucher renting households, who must find properties within their budget constraints.
With only 15.8% of the 2,377 residents being renters, competition among landlords in this area could be fierce. Landlords might find themselves competing not only against each other but also against homeowners who may decide to rent out their properties, thus increasing the supply of rental units and potentially driving down rents further.
The takeaway for landlords considering whether to accept vouchers versus relying on cash-paying tenants is clear. While accepting vouchers ensures a steady stream of rental income at a rate above the market average, it also means adhering to the conditions and regulations of the voucher program. On the other hand, focusing on cash-paying tenants requires landlords to navigate the local affordability landscape, possibly offering more competitive pricing or incentives to attract renters within the limited pool.
Landlords should weigh the benefits of guaranteed payments against the operational flexibility of having cash-paying tenants. Given the affordability gap, there may be opportunities to attract voucher holders, who can afford the higher FMR rates, while still providing a valuable service to the community.
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.