Location: Montrose County, CO | Metro: Montrose County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
U.S. Census Bureau data (2024)
The Section 8 economics in ZIP code 81411 operate under specific guidelines that affect both landlords and tenants. For a two-bedroom apartment in this ZIP code, the SAFMR (Small Area Fair Market Rent) for FY 2026 is set at $1,170. This figure represents the maximum amount that the housing authority will reimburse a landlord for renting out a unit under the Section 8 program.
The SAFMR is calculated based on local rental market conditions and is intended to reflect the actual rents being paid in the area. However, the data provided indicates that the local market rent for 2BR units is currently N/A, which suggests that there may be limited recent data available for precise comparisons. Nonetheless, the SAFMR serves as a benchmark for what is considered a fair rent for the area.
When a tenant uses a Section 8 voucher to cover their rent, they are typically responsible for paying 30% of their adjusted income towards the rent and utilities. The remaining 70% is then covered by the housing authority up to the SAFMR limit. If the total rent plus utilities exceeds the SAFMR, the tenant must pay the difference out-of-pocket.
To illustrate, let's assume a tenant has an adjusted monthly income of $1,000. They would pay 30% of this towards rent and utilities, which amounts to $300. The housing authority would then cover the remaining $870 of the $1,170 SAFMR. This leaves the landlord with a guaranteed payment of $1,170 per month, assuming the tenant's share is fully paid.
However, the SAFMR does not include any utility allowances. These allowances are separate payments made by the housing authority to help cover the cost of utilities. The exact amount can vary, but it is usually a fixed amount per bedroom. For a two-bedroom unit, the utility allowance might range from $100 to $200 per month, depending on the local housing authority's policies. Therefore, if we add a conservative estimate of $150 for utility allowances, the total reimbursement to the landlord would be around $1,320.
In ZIP code 81411, given the SAFMR of $1,170 and assuming a $150 utility allowance, the typical reimbursement gap or surplus for a two-bedroom unit would be the difference between the SAFMR and the local market rent. Since the local market rent is listed as N/A, we cannot provide a definitive surplus or gap figure. However, if the local market rent were below $1,170, landlords would receive a surplus above the market rate. Conversely, if the market rent were higher than $1,170, landlords would face a shortfall unless they can collect additional rent from the tenant.
Landlords should be aware that the SAFMR is subject to change annually based on updated market data, so it's important to stay informed about future adjustments.
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.