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 | $950 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $950 | $189,249 | 0.5% | F |
| 2BR | $1,230 | $235,930 | 0.52% | F |
| 3BR | $1,570 | $294,113 | 0.53% | F |
| 4BR | $1,840 | $330,707 | 0.56% | F |
| 5BR | $2,134 | $391,133 | 0.55% | F |
U.S. Census Bureau data (2024)
ZIP code 81005, located in Pueblo, Colorado, stands out due to its unique mix of residents and housing values. With a population of 32,441, it has a rental rate of 22.8%, which is lower than the national average. The median income here is $70,574, indicating a middle-class community. The median home value is $291,632, reflecting an affordable housing market compared to many other areas in the state.
The economics of Section 8 vouchers in this area are particularly noteworthy. The Fair Market Rent (FMR) for ZIP 81005 for fiscal year 2024 is set at $1,120, significantly below the ZORI (Zillow Rental Index), which is $1,686. This discrepancy means that landlords can potentially benefit from the difference between the FMR and the market rent when accepting Section 8 tenants. However, they should be aware that the voucher amount will not cover the entire market rent, necessitating careful consideration of the additional costs involved.
Based on the data signature, ZIP 81005 appears to be a stable area. The relatively low rental rate suggests that homeownership is preferred, and the median income level indicates a steady economic base. While the gap between the FMR and ZORI might present some challenges for landlords, the overall environment seems conducive to long-term investment rather than short-term speculation.
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.