Location: La Plata County, CO | Metro: La Plata 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 | $1,360 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,780 | $533,214 | 0.33% | F |
| 3BR | $2,160 | $750,372 | 0.29% | F |
| 4BR | $2,340 | $907,508 | 0.26% | F |
| 5BR | $2,714 | $1,204,324 | 0.23% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP 81303 (Hesperus, CO) for Section 8 investment, follow this decision tree:
1) Does FMR $1,510 (metro FY 2026) clear debt service on a $691,816 property?
No. The Fair Market Rent (FMR) of $1,510 per month does not cover the debt service on a property valued at $691,816. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs, which would likely exceed $1,510 monthly.
2) Is market rent $1,874 (ZORI) above, at, or below FMR?
The Zillow Observed Rent Index (ZORI) indicates that the market rent in Hesperus, CO is $1,874 per month, which is above the FMR of $1,510. This suggests that landlords could potentially charge more than the FMR for non-Section 8 tenants, but Section 8 tenants are limited to the FMR rate.
3) Are 27.8% renters + N/A-day DOM enough demand?
It depends. With 27.8% of the population being renters, there is a moderate level of rental demand in Hesperus, CO. However, the lack of data on days on market (DOM) makes it difficult to assess the speed at which rental properties are filled. A high DOM might indicate slower turnover, which could be risky for an investment strategy reliant on steady rental income.
If you decide to proceed with a Section 8 investment in ZIP 81303, consider the following:
In conclusion, purchasing a property in ZIP 81303 for Section 8 investment is not advisable based on the current FMR alone. However, if a landlord can manage the financial shortfall and has a strategy for attracting non-Section 8 tenants to fill the remaining units, then it could be a viable option despite the uncertainties around rental demand speed.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.