Location: Las Animas County, CO | Metro: Huerfano 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 | $840 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $870 | $145,264 | 0.6% | F |
| 2BR | $1,130 | $156,989 | 0.72% | D |
| 3BR | $1,460 | $261,337 | 0.56% | F |
| 4BR | $1,750 | $333,693 | 0.52% | F |
U.S. Census Bureau data (2024)
ZIP 81089 encompasses the town of Walsenburg, Colorado, a small community with a total population of 4,890. The area has a modest rental market, with 27.6% of residents being renters. The median household income in this ZIP code stands at $52,280, reflecting a middle-class community. The median home value is $211,980, indicating that homeownership is relatively affordable compared to larger metropolitan areas.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for ZIP 81089 is set at $1,010 for fiscal year 2026, which is notably higher than the current market rent of $878 as reported by the Census Bureau's American Community Survey (ACS). This gap suggests potential opportunities for both hands-off voucher operators and hands-on value-add buyers. For hands-off voucher operators, the higher FMR provides a cushion above market rents, ensuring a stable cash flow. Meanwhile, for hands-on value-add buyers, there is room to increase rents closer to the FMR level through property improvements and better management practices.
In conclusion, Walsenburg, CO, represented by ZIP 81089, offers a balanced environment for real estate investment. With a significant portion of the population renting and a favorable gap between FMR and market rents, it presents a viable option for both passive and active investors. For those seeking to manage properties with minimal involvement, relying on Section 8 vouchers can ensure steady returns. Conversely, for investors willing to invest time and resources into improving and managing properties, there is potential for increased profitability by aligning rents with the FMR.
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.