Location: Gunnison 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 | $1,460 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,530 | $435,899 | 0.35% | F |
| 2BR | $1,720 | $741,693 | 0.23% | F |
| 3BR | $2,380 | $1,464,343 | 0.16% | F |
| 4BR | $2,670 | $2,495,903 | 0.11% | F |
| 5BR | $3,097 | $3,830,303 | 0.08% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 81224, Crested Butte, CO, reveals an interesting scenario when comparing Federal Market Rent (FMR) and market rent figures. Using the annualized 2BR FMR of $1,590 for FY 2026, the implied gross yield for properties in this area is approximately 0.11%. This is calculated by dividing the annual rent ($1,590 x 12 = $19,080) by the median home value ($1,416,575). The calculation is as follows:
Implied Gross Yield (FMR): $19,080 / $1,416,575 = 0.01345 or 1.345%
However, using the market rent figure of $1,634, also annualized, the implied gross yield increases slightly to about 1.37%. The calculation for this scenario is:
Implied Gross Yield (Market Rent): $19,608 / $1,416,575 = 0.01384 or 1.384%
The difference between these two gross yields is minimal, but it's worth noting that the market rent scenario provides a marginally higher yield. Given the 27.4% renter density in Crested Butte, it's reasonable to expect that a significant portion of the rental market could be covered by Section 8 vouchers. However, the lack of data on days-on-market (DOM) suggests there might be challenges in securing tenants quickly, which could impact the overall investment performance.
Despite the slight increase in gross yield with market rent, the FMR scenario is more reflective of the actual income landlords can expect from Section 8 tenants. It's important to consider that while the gross yield is low, the stability of government-backed rental payments can provide a secure cash flow for long-term investments. Additionally, the high median home value indicates a potentially affluent neighborhood where Section 8 units might be in high demand.
Landlords and small-portfolio investors should focus on the reliability of the FMR figure as the basis for their investment calculations, while recognizing the potential for market rent to offer a slightly better return. The low gross yields indicate that properties in Crested Butte are primarily residential assets rather than high-yield investments.
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.