Location: Las Animas County, CO | Metro: Baca 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 | $870 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $84,815 | 1.38% | A |
| 3BR | $1,620 | $138,600 | 1.17% | B |
| 4BR | $1,820 | $190,682 | 0.95% | C |
U.S. Census Bureau data (2024)
The ZIP code 81054 encompasses a part of Las Animas, Colorado, which is a small town with a total population of 4,729. In this area, nearly 37.0% of residents are renters, indicating a modest demand for rental properties. The median household income in this neighborhood is $48,398, suggesting that it is primarily composed of middle-income families. The median home value stands at $107,973, reflecting an affordable housing market.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 81054 as determined by HUD for metro areas in fiscal year 2026 is set at $1,020. This figure contrasts with the actual market rent, which according to the Census American Community Survey (ACS), averages $1,196 per month. This gap between the FMR and market rent highlights the potential challenges faced by landlords participating in the Section 8 program, as they must operate within the lower FMR rates while market conditions push rents higher.
Given these economic factors, ZIP 81054 is more suitable for hands-off voucher operators rather than hands-on value-add buyers. The relatively low median income and home values indicate a stable but less dynamic market, where the primary focus would be on providing consistent, affordable housing rather than seeking substantial returns through property improvements or renovations. Landlords should be prepared to manage properties effectively within the constraints of the Section 8 program, ensuring compliance with HUD regulations and maintaining the quality of their units to meet the needs of the 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.