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 | $910 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,040 | $187,145 | 0.56% | F |
| 2BR | $1,310 | $309,199 | 0.42% | F |
| 3BR | $1,810 | $512,619 | 0.35% | F |
| 4BR | $2,190 | $625,740 | 0.35% | F |
| 5BR | $2,540 | $745,118 | 0.34% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 81506, which includes Grand Junction, Colorado, is set at $1220 for fiscal year 2024. This figure represents the payment standard under the Section 8 housing program, meaning that if you participate, the government will pay up to $1220 per month for a unit in this area. It's important to note that this is not the amount you should charge for rent; it's the maximum subsidy the government will provide.
In comparison, the typical market rent for the area, known as the Zillow Observed Rental Index (ZORI), is $1,988. This suggests that your potential rental income could be higher than the Section 8 subsidy, but you would need to consider whether you want to accept lower rents for the stability that comes with government-backed payments.
The demand for rentals in this area is strong, with 34.2% of residents being renters. This indicates a healthy rental market, where there are likely many individuals who would benefit from the affordability provided by Section 8. However, the subsidy rate means that you must ensure your rental property is priced competitively within the parameters of the program.
If you're looking to acquire a property in this area, the median home value stands at $517,559. This can give you an idea of the investment required to enter the market. While this might seem high, remember that it's a one-time cost, and participating in Section 8 can provide a steady stream of income, even if it's less than market rates.
Before you make the decision to participate in the Section 8 program, verify that your property meets the required standards for habitability and safety. The government has strict guidelines on the condition of the units they subsidize, and ensuring compliance is crucial to avoid any issues down the line.
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.