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 | $800 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $910 | $310,712 | 0.29% | F |
| 2BR | $1,150 | $360,166 | 0.32% | F |
| 3BR | $1,590 | $478,431 | 0.33% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 81624 (Collbran, CO) on the axes of yield and stability reveals it as a moderate cash flow opportunity with notable instability factors.
On the yield axis, the Federal Market Rent (FMR) for FY 2024 is set at $960, which is significantly lower than the market rent of $1,500. This indicates that properties in Collbran can potentially generate above-average rental income compared to the FMR. However, the median home value of $423,489 suggests that the capital investment required for property acquisition is relatively high. Therefore, the yield is not exceptionally high but does offer room for profit over the FMR benchmark.
In terms of stability, the market presents several challenges. Only 16.2% of residents are renters, which is a low percentage and could indicate a limited pool of potential tenants. The lack of data on the average number of days on the market (DOM) for rental listings further underscores the uncertainty around how quickly units can be filled. Additionally, the median household income of $91,739 may not be sufficient to support the higher market rents, especially if there is a significant portion of the population that relies on Section 8 vouchers. This income figure is below the median needed to comfortably afford the $1,500 market rent without financial strain, leading to potential tenant turnover issues.
To summarize, ZIP 81624 offers a moderate yield opportunity with a market rent substantially above the FMR, but its stability is compromised by a low percentage of renters and potentially insufficient household incomes. It is not a high-yield/low-stability flip-style market due to the high cost of entry, nor is it a steady-cashflow zone because of the instability factors present. Landlords and small-portfolio investors should approach this market cautiously, considering these specific figures in their investment strategy.
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.