Location: San Miguel County, NM | Metro: San Miguel County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 87583 is limited by the availability of data, particularly regarding the median home value and current market rents. However, we can still derive some useful insights.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 87583 for fiscal year 2026 is set at $970 per month. This figure represents the annualized rental income potential for a property that qualifies under the Section 8 program. To calculate the implied gross yield, we would typically divide the annual rental income by the property's value. However, since the median home value is not available, we cannot compute an exact cap rate for this scenario. Assuming a median home value, the gross yield would be the annual rental income ($970 x 12 months = $11,640) divided by the property value.
Without the median home value, we cannot provide a precise cap rate for the FMR scenario. However, it is important to note that the FMR sets a baseline for what the government will pay for a rental unit, which could influence the overall rental market dynamics in the area.
Regarding the market rent, the data is currently unavailable. This makes it impossible to compare the Section 8 gross yield against the prevailing market rates. Typically, the market rent would give a clearer picture of the potential returns for landlords and small-portfolio investors outside of the Section 8 program.
The renter density in ZIP 87583 is 18.9%, indicating a moderate level of demand for rental properties. The lack of data on the days on market (DOM) suggests either a stable rental market or a scarcity of recent transactions, making it difficult to gauge how quickly properties are rented out.
In conclusion, while we can determine the annual rental income potential through the FMR at $11,640, the absence of median home values and market rent figures hinders a complete cap rate analysis. Investors should consider the implications of these missing data points when evaluating the potential returns of properties in ZIP 87583 under the Section 8 program versus the broader rental market.
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.