Location: Colorado Springs, CO | Metro: Colorado Springs, CO HUD Metro FMR Area
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 | $1,290 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,560 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,850 | $421,362 | 0.44% | F |
| 3BR | $2,560 | $507,273 | 0.5% | F |
| 4BR | $2,940 | $618,577 | 0.48% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 80133, which covers Palmer Lake, CO, has been set at $1,400 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge for a Section 8 rental unit in this area. It's important to note that this is not the rent that tenants will pay; rather, it's the payment standard used by the Housing Choice Voucher program to determine the subsidy amount.
To put this into perspective, the average rent in ZIP 80133 is $1,911 according to recent Census Bureau data. This suggests that landlords participating in Section 8 might receive less than market rate for their properties. However, the demand for affordable housing is strong, with 10.6% of the population being renters. This indicates a significant portion of potential tenants who could benefit from the Section 8 program.
If you're considering acquiring a property in Palmer Lake for Section 8 rentals, the median home value is approximately $519,758. This is a substantial investment, and you should be aware that your rental income from Section 8 will be capped at the FMR, which is lower than the typical market rent.
Before proceeding with a Section 8 rental in ZIP 80133, verify that your property meets all the required standards for safety and livability. The Housing Authority will inspect your property to ensure it adheres to these criteria. Once confirmed, you can confidently list your property under the Section 8 program, knowing that you'll have a steady stream of tenants who qualify for the $1,400 subsidy.
Participating in Section 8 can be a stable choice for landlords and small-portfolio investors, especially given the strong demand for affordable housing. Just remember that the $1,400 is the maximum allowable rent, and you must maintain your property to meet the necessary quality standards.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.