Location: Pitkin County, CO | Metro: Pitkin County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,880 |
| 1 Bedroom | $2,210 |
| 2 Bedrooms | $2,700 |
| 3 Bedrooms | $3,410 |
| 4 Bedrooms | $4,290 |
| 5 Bedrooms | $4,976 |
| 6 Bedrooms | $5,573 |
| 7 Bedrooms | $6,019 |
| 8 Bedrooms | $6,320 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 81656 reveals a challenging environment for Section 8 properties, particularly when considering the median home value and the rental market dynamics.
Based on the Fair Market Rent (FMR) for a 2-bedroom apartment, which is set at $2,370 annually for fiscal year 2026, the implied gross yield can be calculated. This annual FMR translates to a monthly rent of approximately $197.50. Given the median home value of $5,474,416, the gross yield for a Section 8 property would be roughly 0.47%. This calculation assumes that the property could be rented out at the FMR rate and reflects the limited income potential relative to the high property value.
In contrast, the market rent for the area is listed as N/A, indicating a lack of available data or significant activity in the rental market. However, if we were to consider a hypothetical scenario where the market rent is higher than the FMR, the gross yield would still likely remain low due to the extremely high median home value. For instance, even if the market rent were twice the FMR, the gross yield would only increase to about 0.94%, which is still quite modest.
The gross-yield comparison between the FMR-based scenario and a potential market rent scenario is stark. In the first case, the yield is 0.47%, while in the second, it could be 0.94%. The reality of the situation in ZIP 81656, however, is that the 0.47% yield based on the FMR is more likely given the 0.0% renter density. This suggests that very few homes in the area are rented, and most are owner-occupied. Additionally, the N/A-day Days on Market (DOM) indicates a lack of rental transactions, further supporting the conclusion that the FMR-based yield is the more realistic figure.
Investors should take note of these gross yields and understand that the potential for rental income in ZIP 81656, especially through Section 8, is constrained by the high cost of living and the predominantly owner-occupied housing stock. While owning a property in such a high-value ZIP code might offer other benefits, the financial returns from renting, particularly under the Section 8 program, are unlikely to be substantial.
Data Sources: FMR data from HUD (2027). 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.