Location: Las Cruces, NM | Metro: Las Cruces, NM MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $225,925 | 0.59% | F |
| 3BR | $1,820 | $295,127 | 0.62% | D |
| 4BR | $2,110 | $331,083 | 0.64% | D |
U.S. Census Bureau data (2024)
Santa Teresa, NM, located in Dona Ana County, is distinguished by its relatively low rental rate compared to the market average, making it an attractive location for both landlords and small-portfolio investors. With a total population of 12,623, only 14.5% of residents are renters, indicating a primarily owner-occupied community. The median household income stands at $73,848, while the median home value is significantly higher at $312,950, reflecting a stable housing market.
The economic dynamics of Section 8 vouchers in ZIP 88008 are particularly noteworthy. For fiscal year 2024, the Fair Market Rent (FMR) for a Section 8 voucher is set at $1,080, which is notably lower than the market's ZORI (Zillow Observed Rental Index) of $1,574. This disparity suggests that landlords who accept Section 8 vouchers could see a reduction in their rental income compared to market rates. However, the lower FMR also means that properties in Santa Teresa are likely to be more affordable for those receiving vouchers, potentially leading to higher occupancy rates and more consistent tenancy.
Given the data signature of ZIP 88008, the area can be characterized as stable. The high median home value coupled with a moderate median income indicates a robust local economy capable of supporting property values. Additionally, the relatively low percentage of renters suggests a strong preference for homeownership among residents, which is generally indicative of long-term stability and investment security.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.