Location: Grant County, NM | Metro: Grant County, NM
| 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 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 88051 are governed by the SAFMR (Small Area Fair Market Rent) which sets the rental rate for this specific ZIP code. For a two-bedroom apartment, the SAFMR is established at $1,050 per month for fiscal year 2026. This figure is crucial for landlords and small-portfolio investors as it defines the maximum amount the housing authority will pay on behalf of eligible tenants.
A Section 8 voucher holder typically contributes 30% of their adjusted income toward rent. The remaining amount is covered by the housing assistance payment, which is capped at the SAFMR. If the tenant's share plus the utility allowance does not reach the full SAFMR, the landlord receives the difference from the housing authority. Conversely, if the total exceeds the SAFMR, the tenant must cover the excess out-of-pocket.
To illustrate, let's assume a tenant's monthly income is $1,500. Their contribution towards rent would be 30% of this, equating to $450. Utility allowances vary but can be estimated around $200 for simplicity. Therefore, the total amount the tenant would pay is $650 ($450 income share + $200 utilities).
In this scenario, the housing authority would pay the difference between the tenant's total contribution and the SAFMR. Thus, for a two-bedroom apartment in ZIP 88051, the housing authority would reimburse the landlord $400 per month ($1,050 SAFMR - $650 tenant contribution).
The SAFMR being set specifically for ZIP 88051 means that it reflects the local rental market conditions more accurately than a broader metro or county-level FMR would. However, the local market rent is currently unavailable, making it difficult to provide a direct comparison between the SAFMR and prevailing market rates.
Given the specifics of the SAFMR and assuming average utility allowances, landlords can expect a reimbursement gap for a two-bedroom unit in ZIP 88051. In other words, the total rent received from the housing authority and the tenant combined is likely less than the market rate, creating a financial shortfall for landlords who rely solely on Section 8 vouchers. This gap underscores the importance of understanding local market dynamics and potentially seeking additional sources of income to offset any economic disparities.
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.