Location: Washington County, CO | Metro: Washington 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 | $800 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $173,601 | 0.62% | D |
| 3BR | $1,290 | $277,537 | 0.46% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP 80743 (Otis, CO) for Section 8 purposes, follow this decision tree:
Step 1: Does the Fair Market Rent (FMR) of $1,040 cover the debt service on a property valued at $248,141?
No: The FMR does not clear the debt service. In Otis, CO, the FMR of $1,040 is insufficient to cover typical mortgage payments, taxes, and insurance on a property costing $248,141. Landlords should look for properties where the FMR can fully support these costs.
Yes: Proceed to Step 2.
Step 2: Is the market rent of $725 above, at, or below the FMR?
Below: The market rent of $725 is below the FMR of $1,040. This indicates that the local rental market is less expensive than what Section 8 pays. Landlords could potentially benefit financially by participating in the Section 8 program.
At or Above: If market rents were at or above the FMR, it would suggest that landlords might prefer to rent out their properties without the constraints of the Section 8 program. However, since the market rent is below the FMR, this scenario does not apply here.
Step 3: Do 23.9% of residents being renters and the unknown days on market (DOM) indicate sufficient demand?
It Depends: With 23.9% of residents being renters, there is some demand for rental housing. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are rented. A low DOM suggests high demand, while a high DOM implies the opposite. Without this information, landlords must consider other factors such as vacancy rates, local employment trends, and population growth to make an informed decision.
In conclusion, for ZIP 80743 (Otis, CO), the decision to buy a property for Section 8 investment hinges on whether the FMR covers debt service and the market rent's relation to the FMR. Given the current data, the FMR does not clear debt service, and the market rent is below the FMR, indicating potential financial benefits. However, the unknown DOM means demand cannot be definitively assessed, leading to a cautious "it depends" on additional local economic indicators.
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.