Location: Montezuma County, CO | Metro: Montezuma 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 | $970 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,040 | $283,683 | 0.37% | F |
| 2BR | $1,300 | $256,813 | 0.51% | F |
| 3BR | $1,800 | $357,209 | 0.5% | F |
| 4BR | $2,020 | $429,555 | 0.47% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 81321, located in Cortez, CO, within the Montezuma County, CO metro area, reveals several key points that are crucial for landlords and small-portfolio investors.
First, regarding rent math, the comparison between the Fair Market Rent (FMR) of $1,210 and the market rent (ZORI) of $1,608 shows a significant gap. Landlords can expect to charge above the FMR, indicating that the rent math does indeed work in their favor, allowing for potential profits beyond government standards.
Second, on the affordability of acquisition, the median home value stands at $341,121. Given the high median home value, coupled with the fact that the days on market (DOM) is not available and only 0.2% of homes have been subject to price cuts, it suggests that the market is stable and homes are not frequently discounted. This stability implies that while acquisition costs are high, they are likely justified by the market conditions and could be considered affordable relative to the value and demand.
Third, concerning tenant demand, the ZIP code has a population of 14,236, with 25.4% of residents being renters. This indicates a steady base of potential tenants who are actively seeking rental properties. The relatively high percentage of renters supports the idea that there is sufficient tenant demand to fill vacancies quickly.
In summary, the rent math in ZIP 81321 works well for landlords, offering a premium over the FMR. Acquisition is affordable given the stable market conditions, despite the high median home value. Tenant demand is strong, with a quarter of the population renting, ensuring a good pool of potential tenants. These factors collectively present a favorable environment for real estate investment in this area.
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.