HUD Fair Market Rent · FY 2027 · Effective Oct 1, 2026 to Sep 30, 2027
Fair Market Rent in Otero County, New Mexico (FY 2027)
A two-bedroom in Otero County carries a FY 2027 Fair Market Rent of $1,014 a month, effective October 1, 2026 through September 30, 2027. Everything Section 8 pays in Otero keys off that figure.
Two-bedroom FMR
$1,014
+4.2% from FY 2026
Payment standard
$913–$1,115
90% to 110% of the FMR, two-bedroom
Income to afford
$40,560
a year, with rent at 30% of income
Rank in New Mexico
28th of 33
by two-bedroom FMR, highest first
FY 2027 Fair Market Rents
Payment standard is the 90% to 110% band a housing authority can set. Income needed puts rent at 30% of gross income, and the hourly wage assumes a 40-hour week.
| Bedrooms | FMR | Payment standard | Income needed | Hourly wage | vs FY 2026 |
|---|---|---|---|---|---|
| Studio | $706 | $635–$777 | $28,240 | $13.58/hr | +5.2% |
| 1 bedroom | $877 | $789–$965 | $35,080 | $16.87/hr | +10.7% |
| 2 bedroom | $1,014 | $913–$1,115 | $40,560 | $19.50/hr | +4.2% |
| 3 bedroom | $1,404 | $1,264–$1,544 | $56,160 | $27.00/hr | +3.8% |
| 4 bedroom | $1,695 | $1,526–$1,865 | $67,800 | $32.60/hr | +3.9% |
Five to eight bedrooms (PropMetrics estimates)
HUD stops at four bedrooms. These add 15% of the four-bedroom rent per extra bedroom. It's our estimate, not a HUD number.
| Bedrooms | Estimated FMR | Payment standard |
|---|---|---|
| 5 bedroom Estimate | $1,949 | $1,754–$2,144 |
| 6 bedroom Estimate | $2,204 | $1,984–$2,424 |
| 7 bedroom Estimate | $2,458 | $2,212–$2,704 |
| 8 bedroom Estimate | $2,712 | $2,441–$2,983 |
Source: HUD Office of Policy Development and Research, FY 2027 Fair Market Rents. Rents include utilities. huduser.gov
Market check
HUD's number is one input. What does a two-bedroom in Otero actually rent for?
Search any address in Otero for a rent estimate built from nearby comps, with the HUD figure right next to it.
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What a voucher pays here
The voucher doesn't pay the FMR itself. It pays the payment standard. Housing authorities set it anywhere from 90% to 110% of FMR, which puts a two-bedroom standard in Otero somewhere between $913 and $1,115. The tenant pays roughly 30% of their income, the voucher covers the rest up to the standard, and the PHA won't approve a rent above what comparable unassisted units get.
$1,014 a month is affordable, by HUD's 30% rule, on an income of roughly $40,560 a year. Put another way, $20 an hour full time.
Worked example for a two-bedroom renting at the payment standard. The tenant pays 30% of monthly income and the voucher covers the rest.
| Monthly household income | Tenant pays (30%) | Voucher pays at 90%$913 | Voucher pays at 100%$1,014 | Voucher pays at 110%$1,115 |
|---|---|---|---|---|
| $2,500 | $750 | $163 | $264 | $365 |
| $4,000 | $1,200 | $0 | $0 | $0 |
Rate history
The two-bedroom rate went up 4% from FY 2026 ($973) to FY 2027 ($1,014). Since FY 2020 it's up 42% in total, about 5.1% a year. The New Mexico median moved up 2% over the same year.
| Fiscal year | Studio | 1 BR | 2 BR | 3 BR | 4 BR | 2BR change |
|---|---|---|---|---|---|---|
| FY 2020 | $609 | $627 | $714 | $1,030 | $1,254 | — |
| FY 2021 | $601 | $664 | $757 | $1,083 | $1,311 | +6.0% |
| FY 2022 | $545 | $637 | $726 | $1,031 | $1,243 | -4.1% |
| FY 2023 | $568 | $695 | $795 | $1,130 | $1,354 | +9.5% |
| FY 2024 | $609 | $722 | $877 | $1,236 | $1,488 | +10.3% |
| FY 2025 | $640 | $761 | $933 | $1,307 | $1,567 | +6.4% |
| FY 2026 | $671 | $792 | $973 | $1,353 | $1,632 | +4.3% |
| FY 2027In effect | $706 | $877 | $1,014 | $1,404 | $1,695 | +4.2% |
About this rate
Fair Market Rent is HUD's estimate of what a modest, decent unit rents for in an area, utilities included. It's set once a year and runs October to September. For FY 2027 that's October 1, 2026 through September 30, 2027. In Otero, that runs from $706 for a studio up to $1,695 for four bedrooms, all five rates in the table above.
Because Otero sits outside any HUD metro area, its rate is a county-wide figure built from local rents. One number covers every address in the county, Alamogordo included.
Among New Mexico's 33 counties, Otero ranks 28th for two-bedroom FMR. That's about 5% below the state median of $1,063 and about 5% below the national median county at $1,063. About 68,816 people live here, 9th in the state.
Rates by ZIP code
Zoom in and the picture changes. HUD's Small Area FMRs put a two-bedroom at $1,010 in 88081 (Chaparral) and $1,290 in 88330 (Holloman Air Force Base), with the 17 ZIP codes in between. Housing authorities in HUD-designated metros use those ZIP rates instead of the county rate. Everywhere else the ZIP numbers show where rents actually sit, and the county rate stays the official standard.
| ZIP | City | 2BR rate | vs county |
|---|---|---|---|
| 88081 | Chaparral | $1,010 | -0.4% |
| 88310 | Alamogordo | $1,010 | -0.4% |
| 88311 | Alamogordo | $1,010 | -0.4% |
| 88314 | Bent | $1,010 | -0.4% |
| 88317 | Cloudcroft | $1,010 | -0.4% |
| 88325 | High Rolls Mountain Park | $1,010 | -0.4% |
| 88330 | Holloman Air Force Base | $1,290 | +27.2% |
| 88337 | La Luz | $1,010 | -0.4% |
| 88339 | Mayhill | $1,010 | -0.4% |
| 88340 | Mescalero | $1,010 | -0.4% |
| 88342 | Orogrande | $1,010 | -0.4% |
| 88344 | Pinon | $1,070 | +5.5% |
| 88347 | Sacramento | $1,010 | -0.4% |
| 88349 | Sunspot | $1,010 | -0.4% |
| 88350 | Timberon | $1,010 | -0.4% |
| 88352 | Tularosa | $1,010 | -0.4% |
| 88354 | Weed | $1,010 | -0.4% |
Nearby counties
Two-bedroom FMR, with how each compares to Otero.
Lincoln County
49 mi · 20,224 people
$1,063
+5%
Dona Ana County
67 mi · 224,266 people
$1,073
+6%
Chaves County
87 mi · 64,217 people
$1,091
+8%
Sierra County
90 mi · 11,500 people
$1,014
same rate
Eddy County
91 mi · 61,105 people
$1,252
+23%
Socorro County
108 mi · 16,200 people
$1,014
same rate
Luna County
121 mi · 25,611 people
$1,014
same rate
Torrance County
130 mi · 15,490 people
$1,384
+36%
Questions people ask
$1,014 a month for FY 2027, which runs October 1, 2026 through September 30, 2027. The other rates are $706 for a studio, $877 for one bedroom, $1,404 for three and $1,695 for four.
Tools for this county
Fair Market Rent lookup
Any ZIP code's Small Area FMR by bedroom count
Section 8 rent calculator
Payment standard and tenant share for a specific rent
What is Fair Market Rent?
How HUD calculates FMR and what it means for landlords
Rent affordability calculator
The income a household needs for a given rent
What does a rental in Otero actually go for?
HUD's number is one input. Search any address in Otero for a rent estimate built from nearby comps. Free to start, no card.
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