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 | $1,870 |
| 1 Bedroom | $2,170 |
| 2 Bedrooms | $2,690 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $4,190 |
| 5 Bedrooms | $4,860 |
| 6 Bedrooms | $5,443 |
| 7 Bedrooms | $5,878 |
| 8 Bedrooms | $6,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,430 | $2,202,937 | 0.16% | F |
| 4BR | $4,190 | $4,366,000 | 0.1% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2,360 for ZIP 81654 will sufficiently cover the mortgage on a property valued at $2,782,893. The FMR is indeed lower than what might be expected for such a high-priced home, but it's important to note that FMRs are set to ensure that low-income households can afford decent housing. For a property of this value, it's likely that a higher rental price would be justified, especially if the home offers unique features or is located in a highly desirable area.
The investor could also be concerned about the relatively low percentage of renters at 22.6%. This figure suggests that the majority of residents in ZIP 81654 prefer to own their homes rather than rent. However, even with a lower percentage of renters, there can still be significant demand. The actual number of potential renters is influenced by factors such as population size, job opportunities, and the local economy. To fully assess the viability of rental investments, one must consider these broader economic indicators alongside the renter percentage.
Another point of contention is whether housing vouchers will keep up with the market rent of $1,184. The voucher amount is typically tied to the local FMR and adjusted annually based on federal guidelines. While the voucher amount may not fully cover the market rent, it often serves as a starting point for negotiations between landlords and tenants. In some cases, landlords may require additional payments from tenants beyond the voucher amount to meet their financial needs. It's also worth noting that voucher holders often have stable income sources and are reliable tenants, which can offset the risk associated with lower rent coverage.
To provide a comprehensive analysis, we need to consider the mortgage rates and terms, as well as the average rental duration and turnover costs. These factors, combined with the local economic conditions, will give a clearer picture of the investment's profitability. Additionally, understanding the specifics of the housing voucher program in ZIP 81654, including any recent changes or trends, would help in predicting future demand and rent levels.
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.