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 | $840 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $278,102 | 0.43% | F |
| 3BR | $1,540 | $430,664 | 0.36% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 81023, located in Beulah, CO, within the Pueblo, CO MSA metro area, reveals several key points for landlords and small-portfolio investors.
First, the rent math does not favorably align. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1040, while the actual market rent based on Census ACS data stands at $950. This indicates that landlords may struggle to cover costs if they rely solely on the FMR, as the market is currently offering lower rents.
Second, acquisition appears to be relatively affordable. With a median home value of $377,190, potential investors can expect to purchase properties at a reasonable price. However, the lack of data on days on market (DOM) and the low percentage of homes needing price cuts (0.2%) suggest limited opportunities for acquiring distressed properties at a discount. Investors should focus on the overall affordability of property values rather than seeking out bargains.
Third, there is a modest tenant demand. The population of ZIP 81023 is 1,417, with a renter share of 12.9%. This means approximately 182 residents are likely seeking rental housing. While the demand is present, it is not substantial enough to ensure a high occupancy rate without competitive pricing and quality management.
Verdict: ZIP 81023 presents an opportunity for investors who can manage properties efficiently and offer competitive rental rates. Despite the favorable median home value, the discrepancy between FMR and market rent necessitates careful financial planning. Tenant demand is limited but exists, requiring landlords to maintain attractive, well-managed properties to secure and retain renters. Investment success will hinge on the ability to balance acquisition costs with realistic rental income expectations given the local market conditions.
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.