Section 8 Fair Market Rent (FMR) for ZIP 77470 - 2027
Location: Colorado County, TX | Metro: Colorado County, TX
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $920 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$43,149
To determine if a landlord should invest in ZIP code 77470 for Section 8 properties, follow this decision tree:
- Does the Fair Market Rent (FMR) of $1,150 cover the debt service on a property?
- If yes: Proceed to the next question.
- If no: Do not purchase a property in ZIP 77470 for Section 8 purposes. The FMR does not sufficiently cover the costs associated with owning a property.
- Is the market rent above, at, or below the FMR of $1,150?
- If market rent is above FMR: This indicates that there could be opportunities to earn higher rents from non-Section 8 tenants. However, you must still consider the demand for Section 8 properties.
- If market rent is at FMR: This suggests that the market rent aligns well with the FMR, making it a suitable area for Section 8 properties.
- If market rent is below FMR: This scenario is less favorable but still possible if the landlord can find properties with low debt service requirements.
- Are the 5.3% of renters and N/A-day days on market (DOM) sufficient to meet demand?
- If the DOM is low (e.g., under 30 days): There is strong demand for rental properties in ZIP 77470, indicating that a Section 8 property would likely be occupied quickly.
- If the DOM is moderate (e.g., between 30 and 60 days): It depends on the landlord's tolerance for vacancy periods. A Section 8 property might take longer to fill, but it remains a viable option given the alignment with FMR.
- If the DOM is high (e.g., over 60 days): The demand for rentals is weak, and purchasing a Section 8 property would likely result in prolonged vacancies. Consider other areas with stronger rental demand.
The decision to invest in ZIP 77470 for Section 8 properties hinges on these factors. Ensure that the FMR covers your debt service, assess the market rent relative to the FMR, and evaluate the rental demand based on the percentage of renters and DOM. With 5.3% of the population renting, the area shows some interest in rentals, but the exact number of DOM is critical to understanding how quickly a property can be leased.
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.