Location: Mineral County, CO | Metro: Archuleta 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 | $1,260 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,270 | $294,838 | 0.43% | F |
| 2BR | $1,550 | $434,544 | 0.36% | F |
| 3BR | $2,150 | $591,885 | 0.36% | F |
| 4BR | $2,590 | $868,589 | 0.3% | F |
| 5BR | $3,004 | $1,219,785 | 0.25% | F |
U.S. Census Bureau data (2024)
ZIP 81147, located in Pagosa Springs, CO, within the Mineral County, CO metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The key reason for this classification lies in the significant spread between the Fair Market Rent (FMR) and the local market rental rates, as well as the median home value.
The FMR for a one-bedroom unit in the Pagosa Springs metro area for fiscal year 2026 is set at $1,340. In contrast, the current market rental rate for a similar unit stands at $1,448. This $108 difference per month can be leveraged by landlords to ensure steady cash flow. By positioning rental properties just below the market rate but above the FMR, landlords can attract tenants who qualify for Section 8 vouchers while still generating positive cash flow.
The median home value in ZIP 81147 is $563,870, indicating that property values are relatively high. However, the low price-cut share of 0.1% and the lack of significant days on market (DOM) suggest that the real estate market here is stable and not prone to rapid depreciation. This stability makes it a reliable location for long-term investment, especially for those looking to secure consistent cash flow.
Additionally, the 19.9% renter share and median income of $84,270 point towards a moderate demand for rentals and a reasonable economic base. While these factors might suggest some diversification benefits, the primary role of ZIP 81147 in a Section 8 portfolio should be focused on its ability to provide a solid foundation for cash flow.
To summarize, ZIP 81147 is best suited as a cash-flow anchor due to the favorable spread between FMR and market rental rates, combined with stable property values and a moderate rental demand. This strategic position ensures that landlords can rely on predictable income streams while minimizing the risk of property devaluation.
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.