Location: Yuma County, CO | Metro: Kit Carson 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 | $990 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $190,971 | 0.7% | D |
| 3BR | $1,600 | $263,605 | 0.61% | D |
| 4BR | $2,080 | $297,449 | 0.7% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 80807 (Burlington, CO) provides insight into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom unit in the metro area is set at $1,140 per month for fiscal year 2026, while the market rent based on Census ACS data is $1,099 per month.
To calculate the gross yield, we first annualize these monthly rents. For the Section 8 FMR scenario, the annual rent is $13,680 ($1,140 x 12 months), resulting in a gross yield of approximately 5.56% when divided by the median home value of $246,146. In contrast, the market rent scenario yields an annual rent of $13,188 ($1,099 x 12 months), leading to a gross yield of around 5.36%.
The difference between the two gross yields is minimal, with the Section 8 FMR providing a slightly higher return. However, the actual cap rate will depend on additional factors such as operating expenses, vacancy rates, and property management costs, which are not included in this analysis.
Given the 24.4% renter density in ZIP 80807, it's important to note that the demand for rental properties, including those participating in the Section 8 program, is relatively moderate. This suggests that landlords might face some competition from homeowners who are willing to rent out their properties, potentially impacting the ability to charge higher rents.
The N/A-day DOM (Days on Market) indicates incomplete data regarding how quickly properties are rented. However, considering the moderate renter density, it's reasonable to assume that finding tenants could be a bit challenging, especially if the landlord aims to collect the higher Section 8 FMR rent.
In conclusion, while the Section 8 FMR offers a marginally better gross yield compared to the market rent, the realistic scenario for landlords and small-portfolio investors in ZIP 80807 would likely lean towards the market rent figure of $1,099 per month. This is due to the moderate renter population and potential challenges in securing tenants at the higher rate. Investors should use these gross yields as a starting point for their own detailed calculations, taking into account all relevant operational and financial metrics.
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.