Location: Montezuma County, CO | Metro: Dolores 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 | $960 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,030 | $347,176 | 0.3% | F |
| 2BR | $1,290 | $414,025 | 0.31% | F |
| 3BR | $1,790 | $500,714 | 0.36% | F |
| 4BR | $2,000 | $587,731 | 0.34% | F |
U.S. Census Bureau data (2024)
Dolores, CO, located in ZIP code 81323 within Montezuma County, CO metro, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This area stands out as a cash-flow anchor. The rationale behind this classification is rooted in the significant spread between the Fair Market Rent (FMR) and the actual market rent.
The FMR for Dolores, CO, for FY 2026 is set at $1,130, while the prevailing market rent is estimated at $891. This gap indicates that properties in Dolores can be rented out under the Section 8 program at a higher rate than what the market would typically bear. Landlords participating in the Section 8 Housing Choice Voucher Program can expect stable and reliable cash flow due to the government subsidy covering the difference between the market rent and the tenant's contribution.
Apart from the rental aspect, the median home value in Dolores is $469,412. This figure suggests that property values are relatively high, but the rental income potential under Section 8 makes these homes attractive for investment. The ability to generate higher cash flow from rental income, even when property values are elevated, positions Dolores as a solid choice for securing steady returns.
Moreover, Dolores has a 0.1% price-cut share and an N/A-day Days on Market (DOM), indicating that homes here rarely need to be discounted to sell and are generally sold quickly. This stability in the housing market further supports the idea that Dolores can serve as a cash-flow anchor within a Section 8 portfolio. Landlords can expect minimal vacancy rates and consistent income without the need for frequent adjustments to rental prices or extensive marketing efforts.
In summary, Dolores, CO, with its ZIP code 81323, should be considered a cash-flow anchor in a Section 8 portfolio strategy. The substantial difference between the FMR ($1,130) and the market rent ($891) ensures a reliable income stream for landlords, making it a valuable asset for generating predictable 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.