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 | $970 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $172,907 | 0.79% | D |
| 3BR | $1,740 | $244,664 | 0.71% | D |
U.S. Census Bureau data (2024)
The market in ZIP 81025, located in Pueblo, Colorado, is characterized by a median home value of $223,718. The Fair Market Rent (FMR) for the area, as set for fiscal year 2024, is $1140, while the average market rent, according to Census ACS data, stands at $1,431. This indicates that the actual rental prices are higher than the government-set FMR, suggesting that the rental market in Pueblo is experiencing upward pressure.
The absence of specific data on price-cut share and days on market (DOM) makes it challenging to definitively state whether supply outpaces demand or vice versa. However, the disparity between the FMR and market rent implies that there might be a stronger demand for rentals than the supply can meet, leading to higher rents.
With a renter share of 15.1%, Pueblo has a relatively low proportion of renters compared to owners. This suggests that the majority of residents prefer homeownership, which could indicate a stable housing market. However, the persistent gap between FMR and market rent also points to long-term housing pressure, as a significant number of residents continue to seek rental properties despite the cost.
The dynamics of this market reveal a tension between rental affordability and demand. While the rental prices are higher than the FMR, the overall median home value remains affordable, potentially attracting both buyers and renters. Landlords and small-portfolio investors should consider these factors when making investment decisions in Pueblo, focusing on the balance between rental income potential and the stability offered by a predominantly owner-occupied community.
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.