Location: Otero County, NM | Metro: Otero County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 88347 are straightforward. For a two-bedroom apartment, the SAFMR (Standard Area Fair Market Rent) for fiscal year 2026 is set at $970. This figure represents the maximum amount that the housing authority will pay towards the rental costs of an eligible tenant. However, it's important to note that the local market rent for this area is currently unavailable, which can make direct comparisons challenging.
A Section 8 voucher works by covering the difference between what a low-income tenant can afford and the SAFMR. Typically, tenants are required to contribute 30% of their adjusted income toward the rent. For example, if a tenant has an adjusted monthly income of $1,000, they would pay $300 towards the rent. The remaining $670 would be covered by the housing assistance payment (HAP).
In addition to the base rent, there are utility allowances. These vary based on the size of the unit and the location. For a two-bedroom apartment in ZIP 88347, the utility allowance is included in the $970 SAFMR. If the tenant's total utility costs exceed this amount, they must cover the additional expenses themselves.
To illustrate, let's assume a tenant's monthly income is $1,000. They would pay $300 towards the rent, leaving $670 to be covered by the HAP. If the actual rent charged by the landlord is higher than $970, the landlord would need to absorb the excess cost. Conversely, if the rent is lower than $970, the landlord would receive the full SAFMR amount plus any additional utility allowances.
Given the SAFMR of $970, landlords should expect a reimbursement gap if they charge more than this amount. For instance, if a landlord charges $1,100 for a two-bedroom apartment, the reimbursement gap would be $130 per month. On the other hand, if the rent is set at $800, the landlord would have a surplus of $170 per month.
Therefore, the typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 88347 is directly tied to the rent charged by the landlord. Landlords should carefully consider the SAFMR when setting their rental rates to ensure they are financially viable while participating in the Section 8 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.