Location: Costilla County, CO | Metro: Costilla 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 | $790 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $820 | $182,096 | 0.45% | F |
| 2BR | $1,070 | $248,193 | 0.43% | F |
| 3BR | $1,480 | $306,546 | 0.48% | F |
U.S. Census Bureau data (2024)
The Fort Garland, CO area, specifically ZIP code 81133, presents an interesting opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for the Costilla County metro area, effective for fiscal year 2026, is set at $970 per month. In contrast, the market rent based on Census ACS data stands at $1,000 per month. This indicates that voucher tenants will generally cashflow at the FMR rate, meaning landlords can expect a slight shortfall of $30 per unit when renting to voucher holders without premium upgrades.
To further analyze the investment potential, consider the median home value in the area, which is $247,944. This figure helps us derive the rent-to-price ratio, revealing how much monthly rent would cover the cost of owning a property. With a monthly rent of $1,000, the annual rent is $12,000, leading to a rent-to-price ratio of approximately 4.8%. This suggests that rental income alone covers nearly 5% of the property's value annually, a reasonable return on investment for those seeking steady cashflow.
The dynamics between renting and buying properties in this market are also worth noting. The area has a median Days on Market (DOM) of N/A, indicating limited data on recent sales, and a price-cut share of 0.2%, suggesting that sellers rarely need to reduce their asking price to make a sale. These factors imply a stable housing market with minimal fluctuation, beneficial for both long-term appreciation and maintaining consistent rental rates.
In conclusion, while voucher tenants will marginally cashflow at the FMR rate, the overall stability and low competition in the Fort Garland housing market provide a strong angle for investors focused on long-term appreciation and stability rather than immediate high returns on cashflow alone.
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.