Location: Pitkin County, CO | Metro: Pitkin 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 | $1,790 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,570 |
| 3 Bedrooms | $3,310 |
| 4 Bedrooms | $3,990 |
| 5 Bedrooms | $4,628 |
| 6 Bedrooms | $5,183 |
| 7 Bedrooms | $5,598 |
| 8 Bedrooms | $5,878 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,150 | $832,376 | 0.26% | F |
| 2BR | $2,570 | $2,144,589 | 0.12% | F |
| 3BR | $3,310 | $3,740,494 | 0.09% | F |
| 4BR | $3,990 | $10,655,698 | 0.04% | F |
| 5BR | $4,628 | $20,413,739 | 0.02% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 81611, Aspen, CO, in Pitkin County, involve understanding the difference between the SAFMR (Small Area Fair Market Rent) and the local market rent. For a two-bedroom apartment in this area, the SAFMR for FY 2026 is set at $2,230. This figure represents the maximum amount that a Section 8 voucher will cover for rent in this specific ZIP code. In contrast, the local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $13,283, indicating a significant disparity between subsidized rates and actual market conditions.
A landlord participating in the Section 8 program must understand that the voucher does not cover the entire rent. Tenants are required to contribute a portion of their income towards rent. Typically, this contribution is around 30% of the household's adjusted monthly income. If the tenant's share plus any applicable utility allowances does not meet the SAFMR, the landlord will receive the total of these amounts, up to the $2,230 limit.
To illustrate, if a tenant's income is $2,000 per month, they would be expected to pay approximately $600 towards rent. Utility allowances vary but can range from $200 to $400, depending on the specifics of the voucher and the size of the unit. Thus, in this scenario, the landlord could expect a reimbursement of $800 to $1,000 from the tenant and the utility allowance combined, up to the $2,230 SAFMR cap.
This means that for a two-bedroom apartment in ZIP 81611, where the market rent is significantly higher at $13,283, the landlord would face a substantial reimbursement gap. The difference between the market rent and the SAFMR reimbursement is a significant loss, totaling over $11,000 per month if the landlord were to charge market rates.
In conclusion, for a two-bedroom unit in ZIP 81611, the typical reimbursement gap under the Section 8 program is a surplus of $11,053 per month ($13,283 - $2,230), which highlights the challenges faced by landlords in high-cost areas when accepting Section 8 vouchers. This economic reality underscores the need for careful consideration and planning when deciding to participate in the Section 8 program in such an expensive rental market.
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.