Location: Rio Blanco County, CO | Metro: Garfield 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 | $1,100 |
| 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 | $338,880 | 0.43% | F |
| 3BR | $2,010 | $497,951 | 0.4% | F |
| 4BR | $2,160 | $602,532 | 0.36% | F |
| 5BR | $2,506 | $678,223 | 0.37% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP code 81650, located in Rifle, CO, are significant and must be carefully considered. Tenant turnover is a critical issue, with the market rent at $1,301 being notably lower than the Fair Market Rent (FMR) of $1,440 for FY 2026 in the metro area. This discrepancy suggests that tenants might find it more attractive to seek higher-paying jobs or move to areas where their rental assistance can cover a larger portion of the rent, leading to higher turnover rates.
Vacancy exposure is another concern, as the Days on Market (DOM) data is currently unavailable. This lack of information makes it difficult to predict how long a property might remain vacant between tenants, which can significantly impact cash flow. Additionally, the deferred maintenance exposure is substantial. With a typical home value of $496,675 and a median income of $81,025, landlords should anticipate that residents receiving rental assistance may not have the financial means to address minor maintenance issues, potentially leaving the landlord responsible for these costs.
However, these risks are somewhat mitigated by the high renter share of 28.6%. High renter density generally translates into a robust demand for housing vouchers, which can provide a steady stream of tenants willing to use Section 8 assistance. The presence of many renters in the area also indicates a strong rental market, which can help maintain occupancy levels even if some tenants leave due to higher-paying opportunities elsewhere.
In summary, while there are notable risks associated with operating in ZIP code 81650, particularly around tenant turnover and deferred maintenance, the high concentration of renters provides a buffer. Given these factors, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.