FY2027 Small Area FMR · Hobbs, NM
ZIP 88242 Fair Market Rent & Payment Standards
HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 88242 (Hobbs, NM) is $1,660 a month, up 9.9% from FY2026. That is 25% above the Lea County, NM area-wide FMR of $1,327.
Payment standard range, 2 bedrooms
Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.
FY2027 FY2026
Where 88242 sits in the Lea County, NM area
Of the 13 ZIP codes HUD lists for the area, 88242 has the 1st highest two-bedroom Small Area FMR. Lea County, NM is not on HUD's list of mandatory Small Area FMR areas, so voucher payment standards here are normally based on the area-wide FMR of $1,327 for two bedrooms; an agency that opts in to Small Area FMRs would use $1,660 for this ZIP code instead.
All unit sizes
| Unit | FY2027 SAFMR | Payment standard range | Area-wide FMR | FY2026 SAFMR |
|---|---|---|---|---|
| Studio | $1,390 | $1,251 – $1,529 | $1,111 | $1,210 |
| 1 bedroom | $1,400 | $1,260 – $1,540 | $1,117 | $1,220 |
| 2 bedrooms | $1,660 | $1,494 – $1,826 | $1,327 | $1,510 |
| 3 bedrooms | $2,090 | $1,881 – $2,299 | $1,670 | $1,870 |
| 4 bedrooms | $2,280 | $2,052 – $2,508 | $1,823 | $2,090 |
A household renting a two-bedroom home at the Small Area FMR of $1,660 needs about $66,400 a year to keep housing costs at 30% of income. The area median family income is $92,200 and the 80% low-income limit for four people is $70,250. ZIP code 88242 lies mainly in Lea County. See the Lea County, NM county page for the full income limits table and the household check.
Nearby ZIP codes
Questions
What is the Fair Market Rent for ZIP code 88242?
HUD's FY2027 Small Area Fair Market Rents for 88242 are $1,390 (studio), $1,400 (1 BR), $1,660 (2 BR), $2,090 (3 BR) and $2,280 (4 BR) a month.
What is the Section 8 payment standard in 88242?
Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 88242 that range is $1,494 to $1,826 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.
Which income limits apply in 88242?
The FY2026 income limits of the Lea County, NM area apply: median family income $92,200, low-income (80%) limit $70,250 for a family of four.