Location: Grant County, NM | Metro: Grant County, NM
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 | $820 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $246,580 | 0.43% | F |
| 3BR | $1,290 | $315,317 | 0.41% | F |
U.S. Census Bureau data (2024)
The ZIP code 88049, located in Hanover, New Mexico, has a population of 807 individuals. Only 2.8% of the residents are renters, indicating that this area is predominantly dominated by homeowners rather than renters. The median household income in this region is $59,219, which is crucial for understanding the financial capacity of potential tenants.
Despite the low percentage of renters, the demand for Section 8 vouchers is not necessarily deep. With only a small portion of the population renting, it suggests that there might be limited availability of rental properties and thus, a smaller pool of Section 8 tenants compared to areas with higher percentages of renters.
To connect the income levels to the market rent, we must consider the Fair Market Rent (FMR), which is set at $1,050 for the fiscal year 2026 in the metro area. This figure represents the typical rent for a standard unit. Given the median household income, the FMR consumes approximately 18% of the average monthly income, calculated from $59,219 per year. This percentage is relatively low, suggesting that most households could afford the market rent without assistance.
However, landlords should still prepare for a tenant profile that includes those seeking housing assistance. These tenants will likely have a lower income level, possibly around or below the poverty line, which is significantly less than the median household income. Landlords should expect to see applications from families who may rely on vouchers to cover their housing costs, given the FMR of $1,050.
In conclusion, while ZIP 88049 is primarily a homeowner-dominated area, there remains a niche market for landlords willing to accept Section 8 tenants. The expected tenant profile would consist of families with lower incomes who require housing assistance to meet their living expenses. Despite the overall low renter population, these tenants can be a stable source of income for landlords, especially if they are willing to manage the complexities associated with the Section 8 program.
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.