Section 8 Fair Market Rent (FMR) for ZIP 81152 - 2027
Location: Costilla County, CO | Metro: Costilla County, CO
Investment Score for ZIP 81152
C
Monthly Rent (2BR)
$1,090
Median Price (2BR)
$123,698
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 | $810 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
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 |
$1,090 |
$123,698 |
0.88% |
C |
| 3BR |
$1,480 |
$170,281 |
0.87% |
C |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$31,875
A skeptical investor might raise several concerns regarding ZIP 81152 in San Luis, CO. Here are the primary objections and their corresponding answers based on the available data:
- Will FMR $970 (metro FY 2026) cover the mortgage on a $136,707 home?: The Fair Market Rent (FMR) of $970 is slightly above the average monthly rent of $873. However, the current 30-year fixed mortgage rate stands at 6.30%, which exceeds the estimated cap rate of 5.1%. This means financing reduces the cash-on-cash return below the cap rate. Therefore, the FMR might not fully cover the mortgage payments, especially if the property is financed at the current high mortgage rate.
- Is there enough renter demand at 31.9%?: The percentage of renters in ZIP 81152 is 32.4%, which is relatively low compared to many urban areas. However, the rental market remains strong, with properties like a 3-bedroom home renting for $1,350 per month, providing a cap rate of 5.9%. Despite the lower renter demand, the rental income potential is favorable for cash flow generation.
- Will vouchers keep pace with $731 market rents?: The average monthly rent in the area is $873, while the FMR is set at $970. Given these figures, vouchers should generally cover the majority of the market rents. However, the data does not provide specific information on voucher amounts or adjustments over time, so caution is advised. Vouchers might not fully cover the rent, especially if they are below the FMR.
The data indicates that ZIP 81152 presents a mixed picture for investors. While it offers good cash flow opportunities, the declining home values and high mortgage rates present challenges. Investors should proceed with caution, ensuring they have a solid understanding of how to operate in a soft 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.