Location: Sierra County, NM | Metro: Sierra County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 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)
To understand the economics of Section 8 housing in ZIP code 87943, it's essential to break down the components involved in rental payments under this program. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is set at $1,000 per month. This figure represents the maximum amount that a Section 8 voucher will cover for a landlord.
The SAFMR is determined by HUD (Housing and Urban Development) based on market conditions and aims to reflect the average rent for a moderate-quality rental unit in the area. However, it's important to note that the local market rent data for ZIP 87943 is currently unavailable, which can make it challenging to compare the SAFMR directly to the actual rents being charged locally.
A Section 8 voucher holder is required to pay 30% of their adjusted monthly income toward rent. This amount is known as the tenant portion. Additionally, there are utility allowances that vary depending on the size of the apartment and the region. For a two-bedroom unit, the utility allowance would be part of the overall reimbursement calculation but is not specified here. Landlords should consult HUD guidelines for the exact utility allowance applicable to ZIP 87943.
The reimbursement process works as follows: HUD pays the difference between the tenant’s contribution and the SAFMR, up to $1,000 in this case. If a tenant’s 30% contribution plus the utility allowance exceeds $1,000, the tenant must pay the excess out-of-pocket. Conversely, if the total contribution is less than $1,000, HUD covers the remaining amount.
For example, if a tenant’s adjusted monthly income is $1,500, they would contribute 30%, which is $450, toward the rent. Assuming the utility allowance adds another $150, the total contribution would be $600. Therefore, HUD would reimburse the landlord the remaining $400 to reach the SAFMR of $1,000.
This reimbursement model can create a gap or surplus for landlords. In ZIP 87943, where the SAFMR is fixed at $1,000, landlords might find themselves either below market rates if local rents exceed this amount or above market rates if local rents are lower. Without specific local market rent data, it's impossible to determine the exact surplus or gap, but landlords should expect a reimbursement that does not necessarily match the local rental market price.
In summary, landlords in ZIP 87943 participating in the Section 8 program will receive a maximum reimbursement of $1,000 for a two-bedroom apartment, with the tenant contributing 30% of their adjusted income and utility allowances factored into the final payment. The actual economic impact—whether a surplus or a gap—depends on the comparison between this reimbursement and the prevailing local market rents.
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.