Location: Huerfano County, 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 | $790 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $870 | $178,893 | 0.49% | F |
| 2BR | $1,130 | $280,572 | 0.4% | F |
| 3BR | $1,440 | $392,779 | 0.37% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 81069, located in Rye, CO, Pueblo County, revolve around the Subsidized Average Fair Market Rent (SAFMR) and the local market rent. For a two-bedroom apartment in this ZIP code, the SAFMR for FY 2024 is set at $920. This figure is specific to this ZIP code and does not apply uniformly across the broader county or metro area. Local market rent, according to Census ACS data, is significantly higher at $2,586.
A landlord participating in the Section 8 program receives payments based on the SAFMR, which covers part of the rent. Tenants are required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,000 for simplicity, the tenant would contribute $300 toward the monthly rent. The remaining amount, up to the SAFMR, is covered by the housing authority. In this case, that would be $920 minus the tenant's contribution of $300, totaling $620 paid by the housing authority.
In addition to the base rent, landlords also receive utility allowances. These allowances vary but typically cover a portion of the tenant's heating, cooling, water, and electricity costs. For ZIP 81069, let's assume a utility allowance of $200 per month, which is then paid directly by the housing authority.
Total reimbursement to the landlord:
This sums up to $1,120 per month. Given the local market rent of $2,586, landlords would face a significant shortfall if they were to rely solely on the Section 8 voucher program. The reimbursement gap for a two-bedroom unit in ZIP 81069 is $1,466 per month ($2,586 - $1,120).
To summarize, landlords in ZIP 81069 can expect to receive $1,120 per month for a two-bedroom unit through the Section 8 voucher program, while the local market rent is $2,586. This results in a substantial reimbursement gap of $1,466 per month, meaning landlords must carefully consider the economic implications before participating in the program.
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.