Section 8 Fair Market Rent (FMR) for ZIP 87578 - 2027
Location: Rio Arriba County, NM | Metro: Rio Arriba County, NM
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,200 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,330 |
| 5 Bedrooms | $2,703 |
| 6 Bedrooms | $3,027 |
| 7 Bedrooms | $3,269 |
| 8 Bedrooms | $3,432 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$N/A
To determine if a landlord should invest in ZIP code 87578 for Section 8 properties, follow these decision points:
- Does the Fair Market Rent (FMR) of $1,370 cover the debt service on a property?
- If Yes: Proceed to the next question. The FMR indicates that there is potential for the rental income to meet or exceed the financial obligations associated with owning a property.
- If No: Do not consider purchasing a property in this area for Section 8 tenants. The rental income would be insufficient to cover the costs of ownership.
- Is the market rent above, at, or below the FMR of $1,370?
- If Above: The market conditions suggest higher rents than the FMR, which could indicate strong demand or the potential to command higher rents outside of Section 8. However, this does not directly impact the viability of Section 8 investments unless it affects the willingness of tenants to participate in the program.
- If At or Below: This aligns with the FMR, making it a suitable consideration for Section 8 investments. It means that the rental rates are in line with what the government deems fair, thus likely providing stable income for the landlord.
- Are the 15.5% of renters combined with an average Days on Market (DOM) of N/A sufficient to create demand?
- If Yes: There is enough demand to justify investing in Section 8 properties. The percentage of renters indicates a portion of the population that relies on rental housing, while the DOM suggests how quickly properties are rented out once they become available.
- If No: The demand might not be sufficient to ensure quick turnover of properties. Landlords should consider whether the local market can sustain the investment without prolonged vacancies.
The decision ultimately hinges on the landlord's ability to secure a property where the FMR of $1,370 meets or exceeds the debt service costs. Additionally, understanding the local rental market dynamics and the percentage of renters, alongside the DOM, will help clarify if the demand is robust enough to support a Section 8 investment in ZIP 87578.
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.