Location: Otero County, CO | Metro: Otero County, CO
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 | $910 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $192,560 | 0.82% | C |
U.S. Census Bureau data (2024)
The ZIP code 81030 represents a neighborhood with a total population of 148, where 28.2% of residents are renters. The median household income in this area stands at $40,625, while the median home value is $188,854. This gives us a clear picture of a community that is relatively small but has a notable percentage of tenants, indicating a demand for rental properties.
When it comes to the economic landscape of renting in ZIP 81030, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,120. However, the actual market rent, according to Census ACS data, is slightly lower at $1,083. This discrepancy suggests that there is potential for value add through improvements or strategic pricing adjustments, bringing rents closer to the FMR without alienating tenants.
For a landlord or small-portfolio investor considering ZIP 81030, the area fits both hands-off voucher operators and hands-on value-add buyers. The presence of a significant number of renters and the alignment of market rents with the FMR indicate a stable environment for voucher operations. On the other hand, the opportunity to increase rents to match the FMR through property enhancements makes it appealing for those looking to actively manage their investments.
In conclusion, ZIP 81030 offers a balanced mix of stability and growth potential for real estate investors. With a median income of $40,625, the local economy supports a steady demand for rental housing priced at $1,083 per month, which is below the $1,120 FMR. This scenario allows for passive income generation through Section 8 vouchers while also providing opportunities for hands-on investors to improve property values and rents.
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.