Location: Grant County, NM | Metro: Grant County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
The economics of Section 8 housing in ZIP code 88055 are governed by the SAFMR (Small Area Fair Market Rent) rates, which are specific to this ZIP code. For fiscal year 2026, the SAFMR for a two-bedroom apartment is set at $1,040. This figure represents the maximum amount that the federal government will reimburse landlords for renting a unit under the Section 8 program.
A voucher holder's contribution towards rent is typically 30% of their adjusted income. If we consider an average adjusted income of $1,500 per month for a voucher recipient, their share would be around $450. This leaves a significant portion of the rent covered by the government, but it's important to note that the actual amount can vary based on individual circumstances.
In addition to the base rent, there are utility allowances that need to be considered. These allowances vary depending on the region and the type of utilities used. For ZIP 88055, the utility allowance is not specified here, but it generally ranges from $200 to $300 per month for a two-bedroom unit. Therefore, if we assume a utility allowance of $250, the total reimbursement by the government would be $1,290 ($1,040 for rent plus $250 for utilities).
However, the local market rent for a two-bedroom apartment in ZIP 88055 is not available, making it difficult to compare the SAFMR to the prevailing market rates. This absence of local market rent data complicates the analysis of whether the reimbursement covers the full cost of renting out a property or leaves a surplus.
To calculate the reimbursement gap or surplus, you must know the local market rent. If the market rent exceeds $1,290, then there is a gap that the landlord must cover. Conversely, if the market rent is below $1,290, the landlord receives a surplus above the local market rate. Without the local market rent, we cannot determine the exact financial impact on landlords participating in the Section 8 program.
Landlords should also be aware that the SAFMR is adjusted annually, and it can change based on economic conditions in the area. It's crucial to stay informed about these changes to manage rental expectations and financial planning effectively.
Data Sources: FMR data from HUD (2027).
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.