Location: Gunnison County, CO | Metro: Delta 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 | $920 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $405,582 | 0.3% | F |
| 3BR | $1,670 | $483,142 | 0.35% | F |
| 4BR | $2,020 | $601,301 | 0.34% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 81428, located in Paonia, CO, within the Gunnison County, CO metro area, reveals several key points for potential landlords and small-portfolio investors.
Firstly, regarding rent math, the Federal Market Rent (FMR) for fiscal year 2026 is set at $1,200. However, the current market rent based on Census ACS data stands at $988. This indicates that landlords may struggle to achieve rents that meet the FMR threshold, suggesting that the rent math does not work favorably in this area.
Secondly, concerning the affordability of acquisition, the median home value in ZIP 81428 is $464,834. The lack of available days on the market (DOM) data and the low 0.2% price-cut share suggest that homes in this area are not frequently being listed for sale or reduced in price. This implies that acquiring properties might be challenging due to their high value and limited availability.
Lastly, examining tenant demand, the population of ZIP 81428 is 3,788, with a renter share of 19.9%. This relatively small number of potential renters could pose difficulties in finding enough tenants to fill rental units, especially given the modest size of the overall population.
Verdict: In ZIP 81428, the rent math does not align well with the FMR, making it less attractive for landlords seeking to participate in government-assisted housing programs. Property acquisition is costly, with median home values significantly higher than typical rental income, and there is limited data on property turnover. Tenant demand is also constrained by the small population size and low renter share. Overall, the environment presents challenges for landlords and small-portfolio investors looking to enter or expand in this market.
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.