Location: Otero County, CO | Metro: Bent 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 | $760 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $780 | $66,082 | 1.18% | B |
| 2BR | $1,020 | $110,333 | 0.92% | C |
| 3BR | $1,310 | $179,538 | 0.73% | D |
| 4BR | $1,700 | $232,433 | 0.73% | D |
| 5BR | $1,972 | $252,833 | 0.78% | D |
U.S. Census Bureau data (2024)
The ZIP code 81050 encompasses part of La Junta, Colorado, a small city with a total population of 9,894 residents. In this area, nearly one-third of the population, or 30.2%, are renters, indicating a significant demand for rental properties. The median household income stands at $57,180, which is relatively modest compared to larger metropolitan areas, yet it supports a median home value of $149,901. This suggests that while the incomes are not exceptionally high, there is still a notable interest in homeownership, likely driven by the affordable housing market.
Transitioning to the economic landscape for landlords and investors, the Fair Market Rent (FMR) for ZIP 81050, as set by HUD for the metro area for fiscal year 2026, is $970. However, the actual market rent, according to the Census Bureau's American Community Survey (ACS), is lower at $783. This gap between the FMR and the market rent presents an opportunity for landlords who can manage properties efficiently, as they may be able to charge closer to the FMR if they offer well-maintained, attractive units.
Given these conditions, ZIP 81050 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area's demographics ensure a steady stream of tenants eligible for Section 8 vouchers, with the potential to earn rents at or near the FMR. For those interested in a more active role, the discrepancy between the FMR and market rent suggests room for improvement through property enhancements, which could justify higher rents and attract non-voucher tenants as well.
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.