Section 8 Fair Market Rent (FMR) for ZIP 81301 - 2027
Location: San Juan County, CO | Metro: La Plata County, CO
Investment Score for ZIP 81301
F
Monthly Rent (2BR)
$1,870
Median Price (2BR)
$573,682
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 | $1,370 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
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 |
| 1BR |
$1,430 |
$343,080 |
0.42% |
F |
| 2BR |
$1,870 |
$573,682 |
0.33% |
F |
| 3BR |
$2,270 |
$854,327 |
0.27% |
F |
| 4BR |
$2,460 |
$1,173,724 |
0.21% |
F |
| 5BR |
$2,854 |
$1,530,074 |
0.19% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$83,943
A decision tree for evaluating whether to invest in ZIP 81301 (Durango, CO) using Section 8 funding would look like this:
- Does FMR $1,650 (metro FY 2026) clear debt service on a $757,880 property?
- No. The Fair Market Rent (FMR) of $1,650 is insufficient to cover the typical debt service costs on a property valued at $757,880. Debt service includes mortgage payments, property taxes, insurance, and maintenance. At this price point, landlords would struggle to break even, let alone profit, from Section 8 tenants in this ZIP code.
- Is market rent $2,087 (ZORI) above, at, or below FMR?
- Above. The Zillow Observed Rental Index (ZORI) indicates that the average market rent is $2,087, which is higher than the FMR of $1,650. This suggests that landlords might find it challenging to attract market-rate tenants if they rely solely on Section 8 funding, as the rental subsidy does not meet the market value.
- Are 35.1% renters + 67-day DOM enough demand?
- It depends. With 35.1% of residents being renters and an average Days on Market (DOM) of 67 days, there is some demand for rental properties. However, the low FMR relative to property values means that the demand may not translate into sufficient income to support a Section 8 investment. Additionally, the longer DOM indicates that finding tenants can be challenging, suggesting that while there is demand, it may not be strong enough to offset the financial risks associated with lower rental subsidies.
In conclusion, investing in ZIP 81301 for Section 8 purposes is not advisable due to the inability of the FMR to cover debt service costs on high-value properties. While market rents are higher and there is some rental demand, these factors do not outweigh the financial shortfall landlords would face when relying on Section 8 funding.
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.