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 | $800 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $146,100 | 0.74% | D |
| 3BR | $1,390 | $232,320 | 0.6% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 81077, which encompasses Swink, CO, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $1,020. However, the market rent data is currently unavailable, indicating a potential challenge in accurately assessing the rental environment. Despite this lack of precise market rent data, the implications of the FMR can still be analyzed.
In the context of Swink, CO, where only 8.6% of residents are renters and the median home value stands at $211,635, the rental market is relatively small. The median income in the area is $48,897, suggesting that many residents may find it challenging to afford market-rate rents without assistance. Given these conditions, landlords who accept Section 8 vouchers can benefit from a stable tenant base that is guaranteed rent payments through the government subsidy program.
While the exact market rent is not available, if we assume that the market rent exceeds the FMR of $1,020, landlords would face a scenario where the voucher amount is less than what they could potentially charge on the open market. This difference represents the cost of housing voucher tenants below open-market rates. In such a case, landlords must weigh the benefits of guaranteed payments against the lower yield compared to non-subsidized rentals.
On the other hand, if the FMR of $1,020 is higher than the market rent, this makes the ZIP code an attractive yield play for landlords. Voucher tenants would bring in a steady income that is likely above the typical market rate, thus providing a financial advantage. This scenario would particularly benefit small-portfolio investors looking for reliable cash flow.
The decision to participate in the Section 8 program should be made with consideration of these factors. Landlords must evaluate whether the stability provided by voucher tenants justifies any potential shortfall from market rates or if the FMR offers a lucrative opportunity in a low-renter population area.
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.