Section 8 Fair Market Rent (FMR) for ZIP 81423 - 2027

Location: San Miguel County, CO | Metro: Montrose County, CO

Investment Score for ZIP 81423

Monthly Rent (2BR)

$1,510

Median Price (2BR)

$439,636

1% Rule

0.34%

Annual Yield

4.12%

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	$1,130
1 Bedroom	$1,270
2 Bedrooms	$1,510
3 Bedrooms	$2,090
4 Bedrooms	$2,360
5 Bedrooms	$2,738
6 Bedrooms	$3,067
7 Bedrooms	$3,312
8 Bedrooms	$3,478

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
2BR	$1,510	$439,636	0.34%	F
3BR	$2,090	$470,799	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,176

Median Household Income

$62,125

Housing Units

786

Renter Percentage

17.8%

Occupancy Rate

91.0%

Renter Occupied

127

The ZIP code 81423, located in Colorado, is a growing area that presents several opportunities for real estate investors, particularly those interested in Section 8 housing. The region's rental market is influenced by both federal guidelines and local economic conditions, creating a balanced environment for landlords and small-portfolio investors.

The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,580, providing a benchmark for rental pricing.
The actual market rent, according to the Census ACS, stands at $1,231, indicating a gap between the FMR and what tenants are currently paying.
The median home value in the area is $477,457, reflecting a moderate cost for homeownership that contrasts with the rental market.
Renters make up 17.8% of the population, suggesting a significant portion of residents rely on rental properties.
The median household income is $62,125, which is important for assessing the financial stability of potential tenants.
While the exact days on market (DOM) data is not available, the combination of the FMR and market rent suggests a steady demand for rental properties.

Investors should take note of the discrepancy between the FMR and the current market rent, as it indicates potential for increased rental income through Section 8 vouchers. The median home value also provides context for property investment costs, while the median income offers insight into tenant affordability. With a notable renter share and steady rental rates, 81423 appears to be a promising market for those looking to enter or expand their presence in the rental sector.

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.