Location: Montezuma County, CO | Metro: Montezuma County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP 81327, located in Montezuma County, CO, presents a unique opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) as determined by HUD for the metro area in fiscal year 2026 is set at $1,170. However, without specific market rent data for comparison, it's critical to rely on the HUD FMR to guide investment decisions.
Voucher tenants in this area will generally cashflow at the HUD FMR rate, given that there is no indication of market rents being significantly higher. This suggests that properties rented to voucher holders should maintain positive cash flow under normal circumstances, assuming reasonable operating costs and vacancy rates.
To further analyze the market, we can look at the median home value, which stands at $448,299. Using the HUD FMR of $1,170, the rent-to-price ratio can be calculated as approximately 0.3%. This low ratio indicates that the rental income alone might not fully justify the purchase price of homes in this area, suggesting that appreciation or other factors might play a more significant role in the overall investment strategy.
The lack of data on the number of days on market (DOM) and the percentage of homes that have had their prices cut does not provide insights into the current rent-versus-buy dynamics. However, the strong correlation between the HUD FMR and the expected market rents implies that the rental market is stable and predictable, which is beneficial for long-term investment planning.
The strongest investor angle in ZIP 81327 appears to be stability, as the HUD FMR provides a reliable benchmark for rental income, ensuring consistent cash flow and reducing the risk associated with volatile rental markets. While appreciation could be a factor, the primary appeal lies in the predictability and stability of the rental income, making it an attractive option for those seeking steady returns.
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.