Location: Yuma County, CO | Metro: Yuma County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 80824 might have several valid concerns regarding the feasibility of investing in this area, particularly focusing on the financial aspects and the dynamics of the rental market. Let's address these concerns one by one.
Will FMR $1,020 (metro FY 2026) cover the mortgage on a $310,173 home?
The Fair Market Rent (FMR) for ZIP 80824 stands at $1,020 for fiscal year 2026. To determine if this will sufficiently cover a mortgage payment on a home valued at $310,173, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4%, the monthly mortgage payment on a $310,173 home would be approximately $1,490. This means that the FMR alone does not cover the mortgage payment. However, it's important to note that property taxes, insurance, and maintenance costs also factor into the total expenses. The FMR is designed to reflect the median rent for a standard unit, not necessarily to cover all housing costs.
Is there enough renter demand at 44.0%?
The rental demand in ZIP 80824 is indicated by a renter-occupied rate of 44.0%. This suggests that nearly half of the housing units are rented out, which is a substantial portion of the market. While this percentage might seem low compared to areas with higher concentrations of renters, it still represents a significant opportunity for landlords and small-portfolio investors. The key here is understanding the local rental market dynamics, including vacancy rates and tenant preferences, to ensure a steady stream of demand.
Will vouchers keep pace with N/A market rents?
The lack of specific data on how Housing Choice Vouchers (commonly known as Section 8 vouchers) will keep up with market rents in ZIP 80824 presents a challenge. Typically, voucher amounts are adjusted annually based on changes in the FMR. Given the FMR is set at $1,020, landlords should anticipate that voucher payments will align with this figure. However, without precise data on the adjustments and the proportion of tenants using vouchers, it's difficult to provide a definitive answer. It's advisable to monitor local housing authority announcements and trends in voucher allocation to stay informed.
In summary, while the FMR of $1,020 may not entirely cover the mortgage payment on a $310,173 home, it does indicate a viable rental price point. With 44.0% of units occupied by renters, there is a notable demand for rental properties. The uncertainty around voucher adjustments highlights the importance of staying updated on local housing policies and market conditions.
Data Sources: FMR data from HUD (2027). 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.