Location: Ouray County, CO | Metro: Ouray County, CO
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,510 | $558,457 | 0.27% | F |
| 3BR | $2,010 | $729,541 | 0.28% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 81427 in Ouray County, Colorado reveals several key insights for landlords and small-portfolio investors.
The rent math does not work favorably in this area. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,460, which is higher than the current market rent of $1,269 based on Census ACS data. This means that landlords might struggle to find tenants willing to pay the FMR, leading to potential vacancies if rents are not adjusted to match the market rate.
Acquisition in ZIP 81427 is not particularly affordable. With a median home value of $686,568, purchasing properties can be costly. Additionally, the lack of available data on days on market (DOM) and the fact that only 0.1% of homes have been subject to price cuts indicate that the housing market is stable but not offering significant discounts to buyers. This makes it challenging for investors to acquire properties at a bargain price.
Tenant demand in ZIP 81427 is relatively low. The total population is 1,218, and only 26.2% of residents are renters. This suggests a limited pool of potential tenants, which could make it difficult to maintain occupancy rates. However, the low number of days on market and minimal price-cut share also imply that those who are renting are likely to stay, indicating some level of stability among the existing rental market.
Verdict: While there is a slight mismatch between the FMR and market rent, making the rent math less favorable, the stability of the housing market and the existing rental population suggest that the investment in ZIP 81427 could still be viable. However, landlords should consider setting rents closer to the market rate of $1,269 to attract tenants. Given the high median home value and limited tenant demand, this area is best suited for investors who can afford higher entry costs and are prepared to manage a smaller pool of potential renters. The overall outlook is cautiously optimistic, contingent upon aligning rent expectations with market realities.
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.