Section 8 Fair Market Rent (FMR) for ZIP 81240 - 2027

Location: Fremont County, CO | Metro: Fremont County, CO

Investment Score for ZIP 81240

Monthly Rent (2BR)

$1,290

Median Price (2BR)

$316,696

1% Rule

0.41%

Annual Yield

4.89%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$940
1 Bedroom	$1,010
2 Bedrooms	$1,290
3 Bedrooms	$1,650
4 Bedrooms	$2,010
5 Bedrooms	$2,332
6 Bedrooms	$2,612
7 Bedrooms	$2,821
8 Bedrooms	$2,962

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,290	$316,696	0.41%	F
3BR	$1,650	$385,096	0.43%	F
4BR	$2,010	$464,153	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,800

Median Household Income

$90,417

Housing Units

2,004

Renter Percentage

19.0%

Occupancy Rate

87.8%

Renter Occupied

335

The ZIP code 81240, encompassing Penrose, Colorado, presents a niche market for real estate investors looking to tap into the local rental economy. Nestled in Teller County, Penrose offers a blend of rural charm and proximity to urban amenities, making it an attractive location for both residents and visitors alike.

The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,240, indicating a stable rental price environment.
The market rent, as reported by the Census American Community Survey (ACS), stands at $1,252, suggesting that the actual rental rates are slightly above the FMR.
The median home value in Penrose is $384,951, reflecting a moderate housing market where property values are neither too high nor too low, offering good potential for investment.
Renters make up 19.0% of the population, showing a modest but present demand for rental properties.
While the days on market (DOM) for properties is listed as N/A, this could imply either a quick turnover rate or that the data is not readily available, which might be due to the limited number of transactions.
The median household income is $90,417, providing insight into the economic stability and purchasing power of the residents.

Analyzing these points, investors can expect a relatively stable rental market in Penrose, with rental prices slightly exceeding the Fair Market Rent. The median home value suggests that Penrose is a middle-income area, suitable for those seeking a balance between affordability and quality of life. With a significant portion of the population renting, there is a steady demand for rental units, though the lack of days on market data indicates a need for further investigation into the speed of property sales or rentals. The median income figure supports the idea that residents have the financial capacity to meet rental costs, making Penrose a viable option for small-portfolio investors and landlords looking for consistent returns.

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.