Section 8 Fair Market Rent (FMR) for ZIP 81416 - 2027

Location: Montrose County, CO | Metro: Delta County, CO

Investment Score for ZIP 81416

F
Monthly Rent (2BR)
$1,250
Median Price (2BR)
$272,061
1% Rule
0.46%
Annual Yield
5.51%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$930
1 Bedroom$960
2 Bedrooms$1,250
3 Bedrooms$1,730
4 Bedrooms$2,080
5 Bedrooms$2,413
6 Bedrooms$2,703
7 Bedrooms$2,919
8 Bedrooms$3,065

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $960 $245,162 0.39% F
2BR $1,250 $272,061 0.46% F
3BR $1,730 $387,265 0.45% F
4BR $2,080 $457,440 0.45% F
5BR $2,413 $563,137 0.43% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
14,256
Median Household Income
$50,243
Housing Units
5,904
Renter Percentage
28.6%
Occupancy Rate
91.7%
Renter Occupied
1,550

ZIP code 81416, located in Delta, CO, stands out within the broader context of Montrose County, CO. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,090. In contrast, the actual market rent in 81416 is $1,600, indicating that rents here exceed the FMR by a significant margin. This suggests that 81416 is not a value pocket but rather a premium sub-market within its metro.

The median home value in 81416 is $367,926, which is notably higher than what might be expected in a typical low-cost rural county like Montrose. This further supports the classification of 81416 as a premium sub-market, where property values and rents are above average.

The renter share in 81416 is 28.6%, which is slightly higher than the typical share seen in many rural areas. However, given that the home values are also relatively high, it does not necessarily indicate a strong presence of Section 8 housing. Typically, a high renter share coupled with lower-than-average home values would suggest a greater reliance on Section 8 vouchers. In this case, the higher renter share alongside elevated home values implies a diverse mix of renters, possibly including both market-rate and subsidized tenants.

To summarize, ZIP code 81416 appears to be a premium sub-market within the Montrose County, CO metro, characterized by higher-than-FMR rents and elevated home values. While the renter share is somewhat above average, the combination of factors does not strongly signal a Section 8 sweet spot. Instead, it indicates a neighborhood that offers more expensive rental options and property investments compared to the broader county average.

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.