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 | $860 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $108,089 | 1.07% | B |
| 3BR | $1,490 | $176,933 | 0.84% | C |
| 4BR | $1,940 | $216,733 | 0.9% | C |
| 5BR | $2,250 | $267,248 | 0.84% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 81067, Rocky Ford, CO, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1,080 per month for fiscal year 2026. However, the local market rent for a similar unit is currently listed at $930 per month according to Census ACS data.
A landlord participating in the Section 8 program receives rental payments from the government on behalf of eligible tenants. The voucher payment consists of two parts: the tenant's portion and the government's portion. In ZIP 81067, the tenant typically pays 30% of their adjusted income towards rent. For a two-bedroom unit, the maximum allowable rent under Section 8 is $1,080, but the actual rent charged can be less if the local market rent is lower.
The government will pay the difference between the tenant's portion and the total rent, up to the SAFMR limit. Additionally, there are utility allowances which vary based on the size of the unit and other factors. For a two-bedroom apartment, the utility allowance is usually around $200 per month.
To illustrate, let’s assume a tenant has an adjusted monthly income of $1,500. They would pay 30% of that, which is $450. The government would then cover the remaining $630 of the local market rent ($930 - $450 = $630), ensuring the landlord receives the full $930. If the local market rent were higher, say at the SAFMR level of $1,080, the government would still only reimburse up to $630 plus utilities, leaving a potential shortfall for the landlord.
In ZIP 81067, since the local market rent is below the SAFMR, landlords do not face any shortfall. Instead, they receive a payment that covers the entire market rent. This means the typical reimbursement for a two-bedroom unit in Rocky Ford, CO, leaves no gap or surplus, as the local market rent aligns perfectly with the amount the government will cover when combined with the tenant's contribution.
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.