Location: Saguache County, CO | Metro: Rio Grande 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 | $900 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $940 | $242,531 | 0.39% | F |
| 2BR | $1,210 | $249,023 | 0.49% | F |
| 3BR | $1,450 | $339,117 | 0.43% | F |
| 4BR | $1,880 | $414,803 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP 81132, encompassing Del Norte, CO, Rio Grande County, and Saguache County, reveals a competitive landscape where HUD's Fair Market Rent (FMR) for the area is set at $1,070 for fiscal year 2026. This figure closely aligns with the market rent reported by the Census American Community Survey (ACS), which stands at $1,064. Given these nearly identical figures, landlords and small-portfolio investors can expect that properties rented at the HUD FMR will generally break even with voucher tenants. To achieve positive cash flow, landlords should focus on premium units that offer above-average amenities or are located in desirable neighborhoods.
The median home value in the area is $303,219, providing a useful reference point for understanding the local real estate market. By comparing the median home value to the HUD FMR, we can derive a rent-to-price ratio. For a property valued at $303,219, the annual rent based on the HUD FMR would be approximately $12,840, resulting in a rent-to-price ratio of about 4.2%. This ratio indicates that rental income alone may not fully cover mortgage payments, taxes, insurance, and maintenance costs, especially for non-premium units.
The dynamics between renting and buying in ZIP 81132 are further highlighted by the median Days on Market (DOM) being N/A and a negligible 0.1% of homes experiencing price cuts. These metrics suggest that the housing market is stable, with little pressure on homeowners to reduce their asking prices. The lack of significant price adjustments also implies that there is no urgent need for landlords to lower rents to attract tenants, maintaining the viability of renting at the HUD FMR.
In summary, while voucher tenants renting at the HUD FMR will likely break even, landlords can achieve marginal cash flow with well-maintained average units and substantial cash flow with premium units. The strongest investor angle in this market is stability, given the consistent rent-to-price ratio and the absence of significant price fluctuations.
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.