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 | $890 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $460,098 | 0.38% | F |
U.S. Census Bureau data (2024)
The ZIP code 81525 in Mack, Colorado, presents an interesting balance between yield and stability for real estate investments.
Yield Analysis: The Fair Market Rent (FMR) for ZIP 81525 in fiscal year 2024 is set at $1,120, significantly lower than the market rent of $1,763. This suggests a potential for higher rental yields if properties can be leased at or near market rates. However, the median household income in the area is $51,324, which might limit the ability of many residents to pay market rents. Additionally, the median home value in the area is $113,796, indicating that property values are relatively low compared to other parts of the state. Given the home value of $488,665 mentioned in the query, it appears this property is above average, potentially offering a higher yield but also requiring careful consideration of market demand.
Stability Analysis: Stability is indicated by factors such as the percentage of renters, days on market (DOM), and median household income. In ZIP 81525, 39.6% of households are renter-occupied, which is a moderate figure suggesting a mix of owner-occupied and rental properties. The absence of data regarding days on market (DOM) means we cannot assess how quickly properties are typically sold, which could be a factor in determining stability. With a median household income of $51,324, there is some concern regarding the financial stability of the area, particularly given the disparity between FMR and market rent. This income level may not support high-end rentals, thus impacting the overall stability of rental investments.
In conclusion, ZIP 81525 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The significant gap between FMR and market rent suggests potential for higher yields, but the lower median household income and moderate percentage of renters indicate a need for caution. Landlords and small-portfolio investors should carefully evaluate the local market conditions and consider targeting properties that align with the income levels of the majority of residents to ensure stable cash flows.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.