Location: Grand County, CO | Metro: Grand County, CO
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,270 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,350 | $399,067 | 0.34% | F |
| 2BR | $1,620 | $529,127 | 0.31% | F |
| 3BR | $2,030 | $785,445 | 0.26% | F |
| 4BR | $2,350 | $1,063,820 | 0.22% | F |
| 5BR | $2,726 | $1,611,519 | 0.17% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 80447 in Grand Lake, Colorado, reveals some interesting insights into the potential returns for landlords and small-portfolio investors. To begin, let's annualize the Fair Market Rent (FMR) for a two-bedroom unit, which stands at $1,480 per month according to the fiscal year 2026 metro figures. This translates to an annual rental income of $17,760.
Next, consider the Zillow Observed Rental Index (ZORI), which indicates a market rent of $1,845 per month for a similar property. The annualized market rent would be $22,140. Given the median home value in the area is $733,082, we can calculate the implied gross yield for both scenarios. For the FMR scenario, the gross yield is approximately 2.42%, calculated as $17,760 divided by $733,082. In contrast, the gross yield based on market rent is around 3.02%, derived from $22,140 over $733,082.
Evaluating these figures against the local context, it's important to note that the renter density in ZIP 80447 is 25.8%. This suggests a moderate demand for rental properties, including those participating in the Section 8 program. However, the N/A-day DOM (Days on Market) figure implies either very low turnover or insufficient data to provide a reliable average, making it challenging to predict how quickly a property might be leased.
Considering the gross yields, the market rent scenario offers a significantly higher return compared to the FMR scenario. The 3.02% gross yield from market rents contrasts sharply with the 2.42% yield from FMRs. While the Section 8 program provides a stable tenant base, the lower FMR rates result in a less attractive gross yield for investment purposes. For landlords and small-portfolio investors looking to maximize their returns, the market rent scenario presents a more favorable option despite the slightly higher risk associated with non-subsidized tenants.
In summary, the Section 8 cap-rate picture for ZIP 80447 shows a gross yield of 2.42% based on FMRs versus 3.02% based on market rents. Given the moderate renter density and limited data on DOM, the higher gross yield from market rents appears more realistic for achieving better investment performance.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.