Section 8 Fair Market Rent (FMR) for ZIP 81149 - 2027

Location: Saguache County, CO | Metro: Saguache County, CO

Investment Score for ZIP 81149

F
Monthly Rent (2BR)
$1,010
Median Price (2BR)
$237,154
1% Rule
0.43%
Annual Yield
5.11%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$750
1 Bedroom$920
2 Bedrooms$1,010
3 Bedrooms$1,410
4 Bedrooms$1,580
5 Bedrooms$1,833
6 Bedrooms$2,053
7 Bedrooms$2,217
8 Bedrooms$2,328

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,010 $237,154 0.43% F
3BR $1,410 $306,433 0.46% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
1,183
Median Household Income
$57,019
Housing Units
621
Renter Percentage
26.1%
Occupancy Rate
84.1%
Renter Occupied
136

The real estate market in Saguache, Colorado (ZIP 81149), presents a unique scenario for both landlords and small-portfolio investors. With a median home value at $266,203, it's evident that the area remains relatively affordable compared to many other markets across the country. The absence of a percentage indicating how many listings have been reduced suggests that there hasn't been significant downward pressure on property values, which is typically a sign of stability. Additionally, the median days on market (DOM) being listed as N/A points towards either a balanced market or a scarcity of recent sales data, making it difficult to gauge the speed at which properties are selling.

On the rental side, the Forward Monthly Rent (FMR) set at $970 for the fiscal year 2026 contrasts with the current market rate of $1,035. This indicates that the rental market is currently outpacing the government's benchmark, suggesting strong demand for rental properties in the area. However, the gap between the FMR and the actual market rate could imply potential adjustments in the future, possibly due to changes in local economic conditions or shifts in the broader housing market.

For long-term investors considering holding onto properties, the setup implies a cautious approach. The lack of specific historical appreciation data makes it challenging to project future growth. Nevertheless, the combination of stable home values and slightly above-benchmark rental rates suggests that maintaining a property in Saguache could be a steady investment, especially if the current demand persists. Long-term appreciation is likely to remain modest unless there are significant changes in the local economy or population dynamics that drive up both home values and rents.

In summary, the current market conditions in Saguache, characterized by a stable median home value and a rental market that slightly exceeds the FMR, suggest a solid, but not spectacular, investment environment. Landlords and investors should focus on the consistent rental income rather than rapid capital appreciation, given the limited data on past trends and the current signals from the market.

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.