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 | $920 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,020 | $107,691 | 0.95% | C |
| 2BR | $1,320 | $233,123 | 0.57% | F |
| 3BR | $1,680 | $335,672 | 0.5% | F |
| 4BR | $1,980 | $392,253 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 81006 is located in Pueblo, Colorado, and represents a modest-sized neighborhood with a population of 11,029 residents. Approximately 21.9% of these residents are renters, indicating a community where homeownership is more prevalent than renting. The median household income in this area is $69,050, which places it within a comfortable middle-income range. The median home value stands at $322,892, reflecting a stable housing market with homes that are affordable yet valuable.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 81006 for fiscal year 2024 is set at $1,130. This figure is slightly higher than the reported market rent of $1,108, according to the Census Bureau's American Community Survey (ACS). The proximity of these figures suggests that the rental market in this ZIP code is closely aligned with government guidelines, providing a reliable basis for investment decisions.
Given the characteristics of ZIP 81006, it would be suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the alignment between FMR and market rents ensures a steady stream of Section 8 tenants without the need for constant adjustments or negotiations. On the other hand, for hands-on investors looking to improve properties and increase their value, the median home value indicates potential for growth in property appreciation. The modest population size and relatively high median income suggest that there is room for enhancing property quality while still maintaining affordability for the local tenant base.
In conclusion, ZIP 81006 in Pueblo, Colorado, offers a balanced environment for Section 8 investments. With a median income of $69,050 and a median home value of $322,892, the area supports both passive and active management styles. The slight edge of the FMR over the market rent provides an opportunity for hands-off investors to secure consistent tenancy, while the potential for property enhancement makes it appealing for those seeking to add value through improvements.
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.