Location: Chaffee 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 | $1,310 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,730 |
| 5 Bedrooms | $3,167 |
| 6 Bedrooms | $3,547 |
| 7 Bedrooms | $3,831 |
| 8 Bedrooms | $4,023 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,350 | $438,016 | 0.31% | F |
| 2BR | $1,760 | $633,345 | 0.28% | F |
| 3BR | $2,370 | $842,079 | 0.28% | F |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 landlords in ZIP 81236, Nathrop, CO, presents several challenges that must be carefully considered. Firstly, tenant turnover is a significant concern due to the lack of market rent data, which contrasts with the Federal Market Rent (FMR) of $1,470 for FY 2026. This discrepancy can lead to financial instability if tenants frequently leave or fail to meet the income requirements for vouchers. Secondly, vacancy exposure is another critical issue, as the days on market (DOM) data is unavailable. A longer DOM can result in lost rental income and increased advertising costs, especially in a small town like Nathrop where rental demand might be lower. Lastly, deferred maintenance poses a risk, particularly when considering the typical home value of $681,721 and the median income of $98,170. Landlords may find it difficult to cover the costs of necessary repairs and renovations without significantly increasing the rent, which could exceed the income levels of potential voucher holders.
However, these risks are somewhat mitigated by the high concentration of renters in the area. With a 1.4% renter share, there is a strong likelihood of a higher demand for housing vouchers, which can provide a steady stream of tenants and reduce the risk of vacancy. The presence of a substantial number of voucher holders can also help to stabilize the rental market, ensuring that landlords receive consistent rental payments.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 81236 is moderate.
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.