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 Section 8 analysis for ZIP code 87564 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $1,280. However, the current market rent is listed as N/A, which suggests that there is limited data available for comparison. Despite this, we can still provide insights based on the given FMR figure.
In the absence of market rent data, it's clear that the FMR of $1,280 represents the benchmark for rental properties participating in the Section 8 program. Given the context of ZIP 87564, where only 0.0% of residents are renters and the median home value is not specified, it becomes evident that the primary focus of the area is on homeownership rather than renting. This could imply a lower demand for rental properties overall, but the presence of Section 8 vouchers can still drive interest in the rental market.
The median income in ZIP 87564 is $78,472. This figure provides important context for understanding the economic profile of the area and the potential purchasing power of its residents. While the median income does not directly impact the decision to rent versus own, it can influence the ability of voucher holders to contribute additional income towards rent, potentially increasing their attractiveness to landlords.
If we assume that the market rent is higher than the FMR, landlords accepting Section 8 tenants would be renting below the open-market rates. This scenario presents a trade-off: while landlords might see a reduction in potential rental income compared to what they could charge non-voucher tenants, the stability provided by the Section 8 program can be attractive. Voucher tenants typically have a guaranteed source of income to cover their portion of the rent, reducing the risk of vacancy and non-payment.
Conversely, if the market rent were lower than the FMR, landlords could benefit from a yield play. They would be able to rent out their properties at the FMR rate, which is higher than the open-market rate, thus securing a better return on investment. However, since the market rent is currently unavailable, this remains speculative.
In conclusion, the gap between the FMR and the market rent in ZIP 87564 is critical for landlords and small-portfolio investors considering participation in the Section 8 program. With the FMR at $1,280 and the market rent unknown, the decision to accept voucher tenants should be made with an understanding of the economic context and the potential benefits and drawbacks associated with renting below or at the FMR rate.
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.