Location: San Miguel County, CO | Metro: San Miguel 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 | $1,130 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,330 | $742,629 | 0.18% | F |
| 2BR | $1,570 | $955,976 | 0.16% | F |
| 3BR | $2,170 | $1,307,814 | 0.17% | F |
| 4BR | $2,470 | $1,890,301 | 0.13% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 81430, Placerville, Colorado, within San Miguel County, hinge on understanding the balance between the SAFMR (Small Area Fair Market Rent) and the local market rent. For a two-bedroom apartment, the SAFMR for fiscal year 2026 is set at $1,580. This figure represents the maximum amount a Section 8 voucher will cover for rent in this specific ZIP code. However, the local market rent averages $1,952 according to the Census ACS.
To clarify the reimbursement process for landlords, it's essential to factor in both the tenant's portion of the rent and any utility allowances. The tenant is typically responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this area, let's say $1,500, then the tenant would contribute approximately $450 toward the rent. The remainder, up to the SAFMR of $1,580, is covered by the Section 8 program.
Utility allowances can vary but generally aim to cover a reasonable amount of electricity, gas, water, and sewer costs. These allowances are added to the tenant's contribution and the voucher reimbursement. For instance, if the utility allowance is $300, then the total reimbursement a landlord might receive could be $1,880 ($450 tenant contribution + $1,580 voucher reimbursement - assuming no overlap between rent and utilities).
However, given the local market rent of $1,952, there is a shortfall when comparing the market rent to the total reimbursement. In this scenario, the reimbursement gap is $72 per month ($1,952 - $1,880), meaning landlords would need to accept a slightly lower rent than the market rate to participate in the Section 8 program in ZIP 81430.
This gap reflects the challenge landlords face in balancing participation in the Section 8 program with maintaining competitive rental income. Despite this, many landlords find value in the stability and support provided by the program, which ensures timely rent payments and assistance for low-income families.
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.