Location: Colfax County, NM | Metro: Colfax County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 87714 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $970, whereas the Census ACS data indicates an average market rent of $625. This creates a gap of $345, which is approximately 55.15% of the market rent.
The disparity where the FMR exceeds the market rent makes ZIP 87714 a prime location for landlords and small-portfolio investors seeking to maximize their yields. Voucher tenants can provide a steady stream of rental income at rates higher than the open market would typically offer. In this scenario, landlords can expect to receive a guaranteed payment of $970 per month, regardless of the local market conditions.
However, this situation also presents a challenge. The cost of maintaining properties to meet the standards required for housing voucher tenants can be higher than renting to non-voucher tenants at the lower market rate. Landlords must ensure that their units comply with HUD's Housing Quality Standards (HQS), which can involve additional expenses for repairs and maintenance.
The demographic context of ZIP 87714 further supports this analysis. With 33.2% of residents being renters and a median household income of $33,333, there is a substantial need for affordable housing options. The lack of a median home value suggests a predominantly rental-based community, making the Section 8 program a critical component of the housing landscape.
To summarize, the gap between the FMR and the market rent in ZIP 87714 represents a clear opportunity for landlords to achieve better yields through the Section 8 program. However, they must also be prepared to incur the costs associated with meeting HQS requirements and providing quality housing to voucher tenants.
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.