Section 8 Fair Market Rent (FMR) for ZIP 88353 - 2027

Location: Guadalupe County, NM | Metro: Guadalupe County, NM

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$770
1 Bedroom	$780
2 Bedrooms	$1,010
3 Bedrooms	$1,340
4 Bedrooms	$1,600
5 Bedrooms	$1,856
6 Bedrooms	$2,079
7 Bedrooms	$2,245
8 Bedrooms	$2,357

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

529

Median Household Income

$N/A

Housing Units

255

Renter Percentage

32.7%

Occupancy Rate

67.1%

Renter Occupied

When considering whether to invest in ZIP code 88353 for Section 8 properties, follow these steps:

Step 1: Debt Service Coverage Ratio (DSCR)

The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $970. Determine if this amount can cover the debt service on a property in this ZIP code. Without a specific property value, calculate using the average property cost and typical financing terms. If the DSCR is less than 1, meaning the rental income does not fully cover the mortgage and other expenses, then the answer is No. Proceed only if the DSCR is greater than or equal to 1.

Step 2: Market Rent Comparison

The Census American Community Survey (ACS) reports the average market rent in ZIP 88353 as $437. Compare this figure to the FMR of $970. Since the market rent is significantly below the FMR, landlords can expect higher rents if they participate in the Section 8 program, making this a Yes for potential profitability.

Step 3: Rental Demand Analysis

In ZIP 88353, 32.7% of residents are renters. Additionally, the days on market (DOM) for rentals must be considered to gauge demand urgency. If the DOM is low, indicating quick turnover of rental properties, this suggests strong demand. However, with the DOM being unspecified, evaluate based on the percentage of renters alone. Given that over a third of the population are renters, there is a reasonable demand. The decision here is It Depends, primarily on the DOM data.

To summarize, the decision to buy in ZIP 88353 for Section 8 investment hinges on the following:

If the FMR of $970 cannot cover the debt service, do not invest.
If the market rent of $437 is below the FMR, the potential for higher income exists, supporting investment.
Evaluate the DOM to confirm demand; with 32.7% of residents as renters, there's a solid base, but DOM will clarify urgency.

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.