Location: Pitkin County, CO | Metro: Eagle 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 | $2,020 |
| 1 Bedroom | $2,290 |
| 2 Bedrooms | $2,900 |
| 3 Bedrooms | $3,560 |
| 4 Bedrooms | $4,730 |
| 5 Bedrooms | $5,487 |
| 6 Bedrooms | $6,145 |
| 7 Bedrooms | $6,637 |
| 8 Bedrooms | $6,969 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,290 | $692,919 | 0.33% | F |
| 2BR | $2,900 | $972,014 | 0.3% | F |
| 3BR | $3,560 | $1,751,972 | 0.2% | F |
| 4BR | $4,730 | $2,354,556 | 0.2% | F |
| 5BR | $5,487 | $3,317,913 | 0.17% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 81621, which encompasses Basalt, CO, reveals a significant gap between the Fair Market Rent (FMR) and the market rent. The FMR for the area, as set by HUD for fiscal year 2026, is $2,570, while the actual market rent, measured by Zillow's ZORI, stands at $5,000. This means that the gap is $2,430 per month, or 48.6% below the market rate.
When FMR is lower than the market rent, as it is in Basalt, landlords and small-portfolio investors must consider the implications of renting to voucher tenants at below-market rates. In this scenario, landlords accept a lower rental income compared to what they could receive from open-market tenants. Given that 31.6% of residents are renters, there is a substantial portion of the population relying on affordable housing options. However, with a median home value of $1,427,055 and a median income of $104,754, landlords might find it challenging to cover costs and maintain profitability solely based on the FMR.
The cost of housing voucher tenants below open-market rates can be analyzed through several lenses. First, it impacts the overall yield of the investment property. Landlords will have to ensure that their expenses, including maintenance, taxes, insurance, and mortgage payments, do not exceed the FMR. For instance, if a landlord's monthly expenses exceed $2,570, they would face financial losses.
Second, landlords need to evaluate the stability and reliability of rental income. Voucher tenants typically have their rent subsidized, which reduces the risk of non-payment. However, landlords must comply with HUD regulations and undergo inspections, which can be time-consuming. Moreover, the process of obtaining and renewing vouchers can sometimes delay payment.
In summary, the gap between FMR and market rent in Basalt, CO, presents both opportunities and challenges for landlords. While accepting voucher tenants ensures steady income and contributes to the community's housing needs, it also requires careful management to ensure profitability given the significant discount from market rates.
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.