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 | $1,140 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,380 | $820,138 | 0.17% | F |
| 2BR | $1,640 | $1,479,589 | 0.11% | F |
| 3BR | $2,270 | $2,818,549 | 0.08% | F |
| 4BR | $2,550 | $5,258,230 | 0.05% | F |
| 5BR | $2,958 | $9,277,064 | 0.03% | F |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 81435 in Colorado reveals several potential challenges that landlords should consider before engaging in Section 8 housing programs. Firstly, tenant turnover is a significant concern. At a market rent of $1,131, tenants might be more likely to move frequently due to financial instability, compared to the higher Federal Market Rent (FMR) of $1,670 for the metropolitan area. This discrepancy can lead to increased administrative costs and time spent on finding new tenants.
Vacancy exposure is another issue, especially considering the average days on market (DOM) is not available for this ZIP code. This lack of data makes it difficult to predict how long a property might remain vacant between tenancies, potentially leading to extended periods without rental income.
Deferred maintenance is also a risk factor, particularly when the typical home value stands at $2,165,592 while the median household income is only $83,076. The disparity between property values and incomes suggests that tenants may not have the financial capacity to cover significant maintenance costs, placing the burden squarely on the landlord. This situation can result in unexpected expenses that can quickly erode profit margins.
However, these risks must be weighed against the high renter share of 43.2% in the area. A large proportion of renters typically translates into a higher demand for rental properties, including those that accept Section 8 vouchers. This demand can help stabilize occupancy rates and mitigate some of the risks associated with vacancy and tenant turnover.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP code 81435 is moderate. While there are notable challenges such as tenant turnover, vacancy exposure, and deferred maintenance, the high renter density offers a counterbalance that can support steady demand for affordable housing options.
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.