Section 8 Fair Market Rent (FMR) for ZIP 88136 - 2027

Location: Lincoln County, NM | Metro: Chaves County, NM

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$920
1 Bedroom	$940
2 Bedrooms	$1,160
3 Bedrooms	$1,560
4 Bedrooms	$1,760
5 Bedrooms	$2,042
6 Bedrooms	$2,287
7 Bedrooms	$2,470
8 Bedrooms	$2,594

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

118

Median Household Income

$67,159

Housing Units

Renter Percentage

33.9%

Occupancy Rate

100.0%

Renter Occupied

To understand the economics of Section 8 housing in ZIP code 88136, it's crucial to first recognize the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1,130 for the fiscal year 2026. This figure is specifically tailored for this ZIP code, reflecting the local rental market conditions.

The SAFMR is the maximum amount that the federal government will pay to cover the rent for a Section 8 tenant. However, the actual reimbursement to landlords is influenced by several factors, including the tenant's portion of the rent and utility allowances. Here’s a breakdown:

Tenant Portion: Tenants are required to contribute 30% of their adjusted income towards rent. If a tenant has an adjusted income of $1,500 per month, they would pay $450 towards the rent.
Voucher Payment: The remaining 70% of the tenant's adjusted income plus any additional utility allowances would be covered by the Section 8 voucher. For instance, if the total utility allowance is $100, then the voucher would pay $780 ($1,130 - $450 + $100).

Note that the local market rent for ZIP 88136 is currently unavailable, which makes it difficult to compare the SAFMR with the actual market rates. Nonetheless, landlords should be aware that the reimbursement from the Section 8 program is based on the SAFMR and not necessarily on the market rent.

In summary, for a two-bedroom apartment in ZIP 88136, the typical reimbursement gap or surplus can be calculated as follows: if the market rent is higher than $1,130, landlords will face a shortfall; conversely, if the market rent is lower, landlords might see a surplus. Given the SAFMR of $1,130, landlords should set their rents strategically to ensure profitability while complying with the program's requirements.

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.