Location: Lincoln County, NM | Metro: Lincoln County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 88301 are structured around the SAFMR (Small Area Fair Market Rent) which is specifically set for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $1030. This figure represents the maximum amount that the housing authority will pay to cover the rental costs for eligible tenants.
In contrast, the local market rent for a two-bedroom unit in ZIP 88301, based on Census ACS data, is $497. This lower figure reflects the average rent charged for similar units in the area, excluding any subsidies or vouchers.
A landlord participating in the Section 8 program receives payment from both the tenant and the government. The tenant is responsible for paying approximately 30% of their income towards rent, plus any applicable utility allowances. The government then covers the difference up to the $1030 limit, ensuring that the total rent does not exceed this amount.
To illustrate, if a tenant's share of the rent is $300, the government would pay the remaining $730 to reach the $1030 SAFMR. This calculation assumes there are no additional utility allowances, which can vary based on the household's needs and local standards.
The SAFMR being set at the ZIP level means that it is tailored to the specific economic conditions of ZIP 88301, providing a more accurate reflection of the local rental market compared to broader metro or county-level rates.
Given these numbers, landlords in ZIP 88301 can expect a significant surplus when renting a two-bedroom apartment under the Section 8 program. With a market rent of $497 and an SAFMR of $1030, the potential reimbursement gap in favor of landlords is $533 per month. This gap represents the difference between what the local market charges and what the government subsidizes, effectively allowing landlords to charge above the market rate without losing out on rental income.
In summary, the economics of Section 8 in ZIP 88301 offer landlords a stable source of income, often exceeding local market rents. By understanding the SAFMR and tenant contribution percentages, landlords can make informed decisions about their participation in the program.
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.