Location: Eagle County, CO | Metro: Eagle County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,820 |
| 1 Bedroom | $2,000 |
| 2 Bedrooms | $2,610 |
| 3 Bedrooms | $3,110 |
| 4 Bedrooms | $4,360 |
| 5 Bedrooms | $5,058 |
| 6 Bedrooms | $5,665 |
| 7 Bedrooms | $6,118 |
| 8 Bedrooms | $6,424 |
To determine if a landlord should invest in ZIP code 81658 (Unknown, CO) for Section 8 properties, follow these decision points:
1. Does the Fair Market Rent (FMR) of $2,380 cover the debt service on a property?
Yes. If the FMR of $2,380 is sufficient to cover the debt service, then the property can be financially viable under Section 8. Debt service includes mortgage payments, insurance, taxes, and maintenance costs. A thorough analysis of these costs is required to ensure that they do not exceed the FMR.
No. If the FMR does not cover the debt service, investing in this ZIP code for Section 8 would not be advisable as the landlord would incur losses.
2. Is the market rent above, at, or below the FMR of $2,380?
Above. If the market rent is higher than $2,380, landlords might consider whether the difference between market rent and FMR justifies the administrative burden of participating in the Section 8 program. It also indicates that there's potential to earn more by renting to non-Section 8 tenants.
At. If the market rent equals the FMR, the landlord can expect to break even on rental income with Section 8 tenants, assuming all other costs are accounted for. This scenario makes the ZIP code a neutral investment choice for Section 8 properties.
Below. If the market rent is lower than $2,380, the FMR provides a higher income guarantee compared to market rates. This could make Section 8 properties in ZIP 81658 a better investment option.
3. Is the percentage of renters and the days on market (DOM) indicative of enough demand?
Enough Demand. If the percentage of renters in the area is high and the DOM is low, it suggests strong demand for rentals, including Section 8 units. Landlords can confidently invest in this ZIP code knowing that there will be a steady stream of tenants.
Low Demand. If the percentage of renters is low and the DOM is high, it implies weak demand for rentals. In such a case, landlords should proceed cautiously as finding tenants, especially those eligible for Section 8, may prove challenging.
The decision to invest in ZIP 81658 for Section 8 properties hinges on the answers to these questions. The financial viability, market conditions, and tenant demand must align favorably for a positive outcome. If any of the criteria are not met, further investigation or reconsideration of the investment is advised.
Data Sources: FMR data from HUD (2027).
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.