Location: Fremont County, CO | Metro: Custer 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 | $1,000 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,020 | $175,008 | 0.58% | F |
| 2BR | $1,340 | $235,874 | 0.57% | F |
| 3BR | $1,670 | $320,697 | 0.52% | F |
| 4BR | $2,080 | $354,232 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 81226, located in Florence, CO, is a modest-sized community with a population of 7,459 residents. Among these, 25.7% are renters, indicating a significant portion of the population relies on rental housing. This makes it a viable location for landlords and small-portfolio investors interested in catering to Section 8 tenants.
The median household income in this area is $53,969, which provides a baseline for understanding the financial capacity of potential tenants. The average market rent for the area stands at $812 per month. To put this into perspective, the monthly rent constitutes approximately 15.4% of the median household income when calculated as $812 divided by $53,969 and multiplied by 12 months. This percentage suggests that the cost of rent is manageable for the average resident, aligning well with the Federal Market Rent (FMR) of $1,200 for the metro area as of FY 2026. However, the lower market rent indicates a more affordable housing environment relative to the FMR standard.
A landlord operating in ZIP 81226 can expect a tenant pool that is largely composed of individuals who benefit from housing vouchers. These tenants will typically have an income level that qualifies them for assistance under the Section 8 program, ensuring that they can afford their rent payments with government support. The voucher demand is likely to be strong due to the sizeable renter population and the relatively low median income compared to the national average. Landlords should prepare for a mix of tenants who may be working in entry-level positions, receiving disability benefits, or other forms of public assistance.
In conclusion, ZIP 81226 presents a scenario where the tenant pool is heavily reliant on rental housing and Section 8 vouchers. With the average rent being a reasonable portion of the local income, landlords can anticipate a stable and financially supported group of tenants. The key to success in this market is to ensure compliance with HUD regulations and to maintain properties that meet the quality standards expected by both tenants and the government.
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.