Location: Montrose County, CO | Metro: Gunnison 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 | $1,070 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $469,469 | 0.3% | F |
| 3BR | $1,910 | $602,645 | 0.32% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 81220, which includes Cimarron, CO, and part of Gunnison County, are governed by the SAFMR (Small Area Fair Market Rent). For a two-bedroom apartment, the SAFMR for fiscal year 2026 is set at $1,250 per month. This figure represents the maximum amount a landlord can charge for rent under the Section 8 program in this specific ZIP code.
The SAFMR is based on HUD's assessment of fair market rents in smaller areas, providing a more accurate reflection of local rental costs compared to broader metropolitan averages. However, the local market rent data for ZIP 81220 is currently unavailable, making it difficult to compare the SAFMR against actual market conditions. Nonetheless, landlords should understand how the voucher system works to ensure they receive the full reimbursement.
A Section 8 voucher covers the difference between the tenant's portion and the total rent. The tenant's portion is typically 30% of their adjusted income, but there are minimum and maximum limits set by HUD. Utility allowances are also factored into the overall payment, though these do not increase the total rent reimbursement beyond the SAFMR limit. If a tenant's portion plus the utility allowance exceeds $1,250, the excess is the responsibility of the tenant.
To illustrate, if a tenant has an adjusted income that determines their portion to be $375 per month and the utility allowance is $150, the voucher would cover the remaining $725 to reach the $1,250 SAFMR. Landlords must ensure that the total rent and utilities do not exceed $1,250 to avoid any financial loss.
In ZIP 81220, the typical reimbursement gap or surplus for a two-bedroom voucher is directly tied to the SAFMR of $1,250. Since the local market rent is not available, landlords should use this figure as a benchmark for setting their rents. If the local market rent is lower than $1,250, landlords might experience a surplus where the voucher covers more than the market rate. Conversely, if the local market rent is higher, landlords will face a gap where they must accept a lower rent than the market rate to participate in the program.
Landlords in ZIP 81220 need to be aware of these economic dynamics to make informed decisions about participating in the Section 8 program. The key is understanding the SAFMR and how it compares to your own property's market value.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.