Location: Saguache County, CO | Metro: Gunnison County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 81248 reveals some critical insights for landlords and small-portfolio investors. The Federal Market Rent (FMR) for a two-bedroom unit in the metro area for fiscal year 2026 is set at $1,200 per month. To annualize this figure, we multiply by 12, resulting in an annual rental income of $14,400.
The median home value for ZIP 81248 is currently unavailable, which complicates the calculation of a precise cap rate. However, we can still derive a rough gross yield using the available FMR data. Assuming a typical home value in the area, let's consider two scenarios:
In the first scenario, if the median home value were hypothetically $200,000, the gross yield would be calculated as follows: $14,400 annual rental income divided by $200,000 property value equals a gross yield of 7.2%.
In the second scenario, with a higher hypothetical median home value of $300,000, the gross yield would drop to 4.8%. This is calculated by dividing the same annual rental income of $14,400 by the $300,000 property value.
The 29.3% renter density in ZIP 81248 suggests a moderate demand for rental properties, including those that might participate in the Section 8 program. The lack of data on the average days on market (DOM) makes it difficult to assess the liquidity of the rental market, but given the renter density, it is reasonable to assume a steady demand for affordable housing options.
Between the two scenarios, the first with a median home value of $200,000 and a gross yield of 7.2% is more likely to reflect the reality of the market in ZIP 81248. This is because higher property values often correlate with more affluent areas where the need for subsidized housing might be lower. Given the median home value is not provided and considering the renter density, a property value closer to $200,000 seems more plausible.
Note that these figures represent gross yields and do not account for expenses such as maintenance, insurance, property taxes, and management fees. Investors should adjust these figures based on their specific costs to determine the net operating income (NOI) and thus the true cap rate.
Data Sources: FMR data from HUD (2027). 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.