Location: Dolores County, CO | Metro: Dolores County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 81332, located in Dolores County, Colorado, reveals key insights into the rental and housing market dynamics. The HUD Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,190. In contrast, the market rent based on Census ACS data stands at $1,625. This discrepancy indicates that voucher tenants will only cashflow at the FMR rate if they occupy premium units, which are typically more expensive than average rentals.
To further understand the investment potential, consider the median home value in ZIP 81332, which is $526,999. Using this figure, we can calculate the rent-to-price ratio. Given the market rent of $1,625, the annual rent would be approximately $19,500 ($1,625 * 12 months). Dividing the annual rent by the median home value yields a rent-to-price ratio of about 3.7%. This suggests that rental income represents a modest portion of the property's value, making it less attractive purely from a cashflow standpoint but potentially beneficial for long-term appreciation.
The median Days on Market (DOM) and the percentage of homes that experience price cuts are not available, but these metrics would provide valuable context regarding the ease of selling homes in this area. If the DOM is low and the price cut share is minimal, it could indicate strong demand and stability in the local real estate market, which would support the appreciation angle for investors.
In conclusion, while cashflow might be limited due to the disparity between FMR and market rent, the most compelling angle for Section 8 investors in ZIP 81332 is likely appreciation, given the high median home value and the potential for steady increases in property values over time.
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.