Location: San Miguel County, NM | Metro: San Miguel County, NM
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 88416 hinges on the annualized Fair Market Rent (FMR) for a 2-bedroom unit, which is set at $1,010 for the fiscal year 2026. However, the lack of specific data regarding the median home value and market rent makes it challenging to provide a comprehensive analysis. Let's break down what we can infer from the available information.
Firstly, let's consider the annualized FMR of $1,010. This figure represents the maximum amount that a landlord can charge a Section 8 tenant for a 2-bedroom rental unit. To calculate the implied gross yield, we would typically divide the annual rental income by the median home value. However, since the median home value is not provided, we cannot accurately compute the gross yield for this scenario.
Secondly, the absence of market rent data further complicates the analysis. Without knowing the prevailing market rents for 2-bedroom units in ZIP 88416, it's impossible to compare the Section 8 rent to the market rate and determine if there is a significant disparity that might affect the attractiveness of Section 8 tenancy for landlords.
The renter density being reported at 0.0% suggests that very few residents in ZIP 88416 rely on rental assistance programs such as Section 8. This low density could indicate that the demand for Section 8 rentals is limited, potentially making it less favorable for landlords who are looking to maximize occupancy and cash flow.
The Days on Market (DOM) figure being listed as N/A means we don't have data on how quickly rental properties are typically leased in this area. This metric is crucial for understanding the liquidity of the rental market and how long a property might remain vacant before finding a tenant.
In conclusion, while the annualized FMR of $1,010 provides a clear benchmark for Section 8 rental rates, the lack of median home value and market rent data prevents us from calculating a precise cap-rate or gross yield. The low renter density in ZIP 88416 implies that Section 8 tenancies might not be as common or desirable for landlords, especially without additional context about market conditions and property values.
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.