Location: Lincoln County, NM | Metro: Lincoln County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 in ZIP code 88336, it's essential to break down the components involved. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,000 per month. This figure represents the maximum amount the government will pay towards the rent for a unit of this size under the Section 8 program.
The SAFMR is crucial because it determines the reimbursement rates for landlords participating in the program. However, it's important to note that the local market rent is currently unavailable, which means we can't directly compare the SAFMR to the typical rental rates in the area. Despite this, the SAFMR provides a baseline for the financial expectations of landlords.
A Section 8 voucher holder is required to contribute a portion of their income towards the rent. Typically, this contribution is 30% of their adjusted monthly income. If the voucher holder's income is $2,000 per month, their contribution would be $600. This leaves the remaining $400 of the SAFMR to be covered by the government subsidy. Therefore, in a two-bedroom unit priced at $1,000, the landlord would receive a total of $1,000, consisting of $600 from the tenant and $400 from the government.
In addition to the base rent, there are utility allowances. These vary but are generally around $200-$300 per month for a two-bedroom apartment. The exact amount depends on the local cost of utilities and the specifics of the voucher holder's situation. This allowance is also paid by the government and should be considered when calculating the total income a landlord can expect from a Section 8 tenant.
Given these factors, if the market rent for a two-bedroom in ZIP 88336 were higher than $1,000, landlords would face a shortfall between the SAFMR and the actual market rent. Conversely, if the market rent is lower, landlords could see a surplus. Since the local market rent is not available, we can only conclude based on the SAFMR that landlords should anticipate receiving $1,000 per month for a two-bedroom unit, including the tenant's contribution and any applicable utility allowance.
The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 88336 cannot be definitively stated without knowing the local market rent. However, landlords should ensure that their rents do not exceed the SAFMR to avoid losing out on potential subsidies. In summary, the SAFMR of $1,000 sets the parameters for landlord compensation, and understanding the tenant contribution and utility allowances is key to managing expectations and finances effectively.
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.