Location: Costilla County, CO | Metro: Alamosa County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
U.S. Census Bureau data (2024)
The ZIP code 81123, located in Blanca, Costilla County, CO, can serve as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the spread between the Fair Market Rent (FMR) of $1,100 for the metro area in fiscal year 2026 and the market rent of $1,106. Additionally, the median home value in this area is $182,806.
A cash-flow anchor is essential for stabilizing a real estate investment portfolio, ensuring consistent income even when other investments might be volatile. In ZIP 81123, the slight difference between the FMR and market rent indicates that properties here can be rented out at close to the government-assisted rate, providing a reliable source of income for landlords and small-portfolio investors.
The median income in the area is $36,487, and 18.3% of residents are renters. These factors suggest that there is a significant portion of the population who could benefit from Section 8 assistance. Given the relatively low median home value and median income, the area is considered moderately affordable, making it an ideal location for cash-flow-focused investments.
While appreciation plays and diversifiers have their place in a real estate portfolio, ZIP 81123 stands out as a cash-flow anchor due to its stable rental market and proximity to government-assisted rates. This makes it a dependable choice for generating steady income, especially for those managing a Section 8 portfolio.
Data Sources: FMR data from HUD (2027). 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.