Location: Grand Junction, CO | Metro: Grand Junction, CO MSA
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 | $880 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,000 | $238,679 | 0.42% | F |
| 2BR | $1,260 | $302,439 | 0.42% | F |
| 3BR | $1,740 | $360,648 | 0.48% | F |
| 4BR | $2,110 | $414,145 | 0.51% | F |
| 5BR | $2,448 | $464,151 | 0.53% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 81501, which includes Grand Junction, Colorado, is set at $1,110 per month for the fiscal year 2024. This figure represents the maximum amount that a landlord can charge a tenant who participates in the Section 8 housing choice voucher program. It's important to note that this is not the actual rent you would set for your property; it's the ceiling for subsidized payments.
In comparison, the Zillow Observed Rent Index (ZORI), which reflects the average market rent for the area, stands at $1,626 per month. This suggests that if you're considering a Section 8 rental, you'll be setting your rent below the local market rate. The difference between these two figures is significant, so you should be prepared to accept a lower monthly income than you might otherwise receive from a market-rate tenant.
The demand for rentals in this area is strong, with 53.2% of residents being renters. This high percentage indicates that there is a substantial number of people looking for affordable housing, making it likely that your property will attract interest from potential tenants. However, the FMR sets a limit on how much you can charge for a Section 8 rental, so you must ensure that the $1,110 per month covers your costs and provides a reasonable profit margin.
If you're planning to acquire a new property to use as a Section 8 rental, the median home value in ZIP 81501 is around $346,475. This is the approximate cost you'd expect to pay for an average home in the area. Given the FMR and the percentage of renters, it's crucial to carefully evaluate whether this investment aligns with your financial goals and risk tolerance.
Before finalizing your decision, verify that the property meets all the necessary requirements for Section 8 participation. This includes passing a habitability inspection to ensure the property is in good condition and safe for occupancy. Once you confirm that your property meets these standards, you can proceed with confidence, knowing that you've taken a significant step toward ensuring a successful and compliant rental.
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.