Location: Fremont County, CO | Metro: Chaffee 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 | $1,350 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,390 | $510,657 | 0.27% | F |
| 2BR | $1,820 | $617,392 | 0.29% | F |
| 3BR | $2,450 | $748,111 | 0.33% | F |
| 4BR | $2,830 | $957,620 | 0.3% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 81201, Salida, Colorado, are defined by the SAFMR (Small Area Fair Market Rent) and the local market rent rates. For a two-bedroom apartment, the SAFMR for FY 2026 is set at $1,620. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this specific ZIP code. In contrast, the local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $2,113.
A landlord participating in the Section 8 program must understand how the reimbursement works. The voucher pays a portion of the rent, but the tenant is also responsible for contributing their share, typically around 30% of their income. Additionally, there are utility allowances which vary but are generally around $250 per month for a two-bedroom unit.
To walk through an example, let's assume the tenant contributes 30% of their income towards rent. If we take the SAFMR of $1,620 as the benchmark, the landlord would receive this amount plus the utility allowance. Thus, the total reimbursement from the voucher program would be approximately $1,870 per month for a two-bedroom unit in ZIP 81201.
This leaves a gap between the local market rent and the voucher reimbursement. Given the local market rent of $2,113, the difference or gap that a landlord might face when renting to a Section 8 tenant is roughly $243 per month. This gap reflects the shortfall between what the voucher program reimburses and what the landlord could potentially charge in the open market.
In summary, while the SAFMR provides a clear guideline for reimbursement, it is lower than the local market rent. Landlords should be prepared for a reimbursement gap if they choose to participate in the Section 8 program in ZIP 81201. The typical reimbursement for a two-bedroom unit is $1,870, resulting in a gap of about $243 compared to the local market rent of $2,113.
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.