Location: Socorro County, NM | Metro: Socorro County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 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 code 87831 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $970. In contrast, the current market rent, as reported by Zillow, is $1,100. This means that the FMR is $130 lower than the market rate, representing a 12.7% discount.
This discrepancy places landlords and small-portfolio investors in a challenging position. While accepting Section 8 tenants can provide steady and guaranteed rental income, the difference between FMR and market rent indicates that landlords will receive less than the typical rental price. Specifically, landlords will miss out on $130 per unit each month, which translates to an annual loss of $1,560 per unit.
The context of ZIP 87831 is essential to understand the implications of this gap. With 24.1% of residents being renters and a median household income of $12,397, the affordability of housing is a critical issue. Accepting Section 8 tenants at the lower FMR rate can be seen as a social responsibility, but it also requires careful consideration of the financial impact on investment yields.
To summarize, landlords in ZIP 87831 should be aware of the $130 monthly shortfall when considering Section 8 vouchers. This analysis is anchored in the local context, where a quarter of the population are renters and the median income is significantly lower than the national average. Therefore, while voucher tenants ensure a consistent income stream, they come at a cost compared to the open-market rental rates.
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.