Location: Fremont County, CO | Metro: Fremont 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 | $1,400 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,920 |
| 5 Bedrooms | $3,387 |
| 6 Bedrooms | $3,793 |
| 7 Bedrooms | $4,096 |
| 8 Bedrooms | $4,301 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,880 | $440,110 | 0.43% | F |
| 3BR | $2,400 | $540,923 | 0.44% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 81233 (Howard, CO) hinges on the Fair Market Rent (FMR) and the median home value. The annualized FMR for a 2-bedroom apartment in Howard, CO, for fiscal year 2026 is set at $1,630 per month. Given the median home value of $482,974, we can calculate an implied gross yield based on the FMR. This would result in an annual rental income of $19,560 ($1,630 x 12 months), leading to a gross yield of approximately 4.05% ($19,560 / $482,974).
However, the market rent for the area is listed as N/A, which complicates the direct comparison. In such cases, it's important to consider other factors that might influence the actual market rate, such as the local economy, job availability, and the overall demand for housing. The 31.9% renter density suggests a moderate level of renters in the area, which could indicate steady demand for rental properties.
The N/A-day Days on Market (DOM) further underscores the lack of comprehensive data regarding the rental market dynamics. Nevertheless, if we were to assume that the market rent aligns closely with the FMR, the gross yield would remain at around 4.05%. If market rents are higher, the gross yield would increase accordingly. For instance, if the market rent were $2,000 per month, the gross yield would be about 5.00%.
In conclusion, the gross yield based on the FMR is approximately 4.05%, while a higher market rent scenario could imply a gross yield of roughly 5.00%. The latter scenario appears more realistic given the median home value and the moderate renter density. However, without specific market rent data, it's challenging to provide a precise comparison. Investors should conduct thorough due diligence and consider local market conditions when evaluating potential yields.
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.