Location: Colorado County, TX | Metro: Colorado County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 77442 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1,140 per month for fiscal year 2026. However, it's important to note that the local market rent for a similar unit is significantly lower, running at an average of $619 according to the latest Census ACS data.
A Section 8 voucher does not cover the entire SAFMR. Instead, it pays the difference between the tenant’s portion and the actual rent charged, up to the SAFMR limit. The tenant typically pays 30% of their adjusted income towards rent. This amount is then combined with a standard utility allowance, which can vary but is generally around $200-$300 for a two-bedroom unit.
To illustrate, let's assume a tenant has an adjusted monthly income of $1,500. Thirty percent of this would be $450, which is the amount they would pay towards rent. If we add a utility allowance of $250, the total payment from the voucher program to the landlord would be $700 ($450 tenant contribution + $250 utilities).
In this scenario, the landlord would receive $700 from the tenant and the voucher program combined. Given the local market rent of $619, the landlord would effectively be receiving above the market rate if they charge the full SAFMR of $1,140. However, since the voucher only covers up to $1,140, the landlord would not receive the full $1,140 unless the tenant’s income is high enough to cover the remaining amount.
The typical reimbursement gap or surplus in ZIP 77442 for a two-bedroom apartment is a surplus. Landlords who participate in the Section 8 program here will generally receive more than the local market rent. For example, if a landlord charges $1,140, and the tenant contributes $450 plus a utility allowance of $250, the landlord would receive a total of $700 from the voucher program. This leaves a surplus of $431 per month over the local market rent of $619.
This surplus makes participating in the Section 8 program financially viable for landlords in ZIP 77442. It ensures that they can maintain their properties at a level that meets the program's requirements without losing money compared to the local rental market.
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.