Location: Garfield County, 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 | $1,100 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,450 | $372,291 | 0.39% | F |
| 3BR | $2,010 | $418,003 | 0.48% | F |
| 4BR | $2,160 | $565,867 | 0.38% | F |
U.S. Census Bureau data (2024)
A skeptical investor might raise several concerns about investing in ZIP 81635 (Parachute, CO) under the Section 8 program. Here are the key objections and how the data addresses them.
Will FMR $970 (zip FY 2024) cover the mortgage on a $421,460 home?
The Fair Market Rent (FMR) for ZIP 81635 is set at $970 per month for FY 2024. To determine if this amount will cover the mortgage on a home priced at $421,460, we need to consider the interest rate and loan terms. Assuming a typical 30-year fixed-rate mortgage with an interest rate of 4%, the monthly payment on a $421,460 home would be approximately $2,000. Clearly, the FMR of $970 does not cover this mortgage payment. However, investors should consider the potential for appreciation in property values and the stability of rental income over time.
Is there enough renter demand at 32.4%?
The renter occupancy rate in Parachute, CO is 32.4%. While this percentage is lower than the national average, it still represents a significant portion of the housing market. The low renter occupancy rate suggests that the supply of rental units may be sufficient to meet demand, but it also indicates that there may be fewer opportunities for new rentals compared to areas with higher percentages. Investors should look into the local job market and any upcoming developments that could increase demand for rental properties.
Will vouchers keep pace with $1,108 market rents?
The FMR of $970 is below the current market rent of $1,108 in ZIP 81635. The discrepancy between the two figures raises questions about whether voucher payments will be sufficient to cover market rates. Historically, the FMR tends to adjust over time to reflect changes in the local rental market. However, there is no guarantee that these adjustments will occur quickly enough to match the pace of rising market rents. Investors should monitor the FMR updates closely and consider the possibility of supplementing the difference with their own funds or seeking alternative sources of rental income.
The data provides a clear picture of the challenges and considerations for investing in ZIP 81635 under the Section 8 program. While there are valid concerns regarding the FMR, renter demand, and voucher payments, the long-term potential for stable rental income and property appreciation remains attractive for small-portfolio investors.
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.