Location: Pueblo, CO | Metro: Pueblo, CO MSA
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 | $860 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $960 | $121,296 | 0.79% | D |
| 2BR | $1,240 | $174,875 | 0.71% | D |
| 3BR | $1,580 | $215,191 | 0.73% | D |
| 4BR | $1,860 | $260,757 | 0.71% | D |
| 5BR | $2,158 | $316,404 | 0.68% | D |
U.S. Census Bureau data (2024)
The ZIP code 81004 in Pueblo, Colorado, is a residential area with a total population of 25,757. Approximately 40.8% of residents are renters, indicating a significant portion of the community relies on rental housing. The median household income here is $51,789, which reflects a moderate economic status. Median home values in the area stand at $195,458, suggesting a mix of affordable and moderately priced homes.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 81004 in fiscal year 2024 is set at $1,140, while the market rent, measured by Zillow's ZORI index, is $1,235. This gap between the FMR and the actual market rent means that landlords who participate in the Section 8 program can expect to receive slightly less than the typical market rate, but still maintain a steady and reliable stream of income.
The area is suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the consistent demand for rental properties, coupled with the guaranteed income from the Section 8 program, provides a stable investment opportunity. On the other hand, value-add buyers can leverage the difference between the FMR and market rent to improve property conditions and potentially increase their returns over time.
In summary, ZIP 81004 offers a balanced environment for Section 8 investments, with a substantial number of renters and moderate income levels supporting the demand. The current FMR of $1,140 is lower than the market rent of $1,235, providing flexibility for different investment strategies.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.