Section 8 Fair Market Rent (FMR) for ZIP 80501 - 2027

Investment Score for ZIP 80501

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,400
1 Bedroom	$1,620
2 Bedrooms	$1,920
3 Bedrooms	$2,540
4 Bedrooms	$2,920
5 Bedrooms	$3,387
6 Bedrooms	$3,793
7 Bedrooms	$4,096
8 Bedrooms	$4,301

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,620	$347,239	0.47%	F
2BR	$1,920	$395,772	0.49%	F
3BR	$2,540	$474,220	0.54%	F
4BR	$2,920	$558,563	0.52%	F
5BR	$3,387	$659,118	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80501 (Longmont, CO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 80501 in Longmont, Colorado, is set by HUD for 2026 as follows: - 0BR: $1320 - 1BR: $1540 - 2BR: $1860 (which represents 27.6% of the median household income) - 3BR: $2440 - 4BR: $2790 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in the area are significantly higher. For instance, the Zillow median price for a 2BR property is $408,182, which translates to a monthly mortgage payment of approximately $2,040 assuming a 4.5% interest rate and a 20% down payment. This means that the price-to-FMR ratio for a 2BR unit is about 18.3x, indicating that the actual rents are much higher than the FMRs. Given these dynamics, Section 8 voucher holders face significant constraints. The FMRs are far below the market rates, making it challenging for them to find suitable housing. Landlords who accept Section 8 vouchers must adhere to these rent limits, which can be less than what they would receive in the open market. #### Affordability & Renter Profile ZIP code 80501 has a population of 44,147, with 41.5% of residents being renters. The occupancy rate is quite high at 95.9%, suggesting that the rental market is tight. Given the median household income of $80,911, the affordability of renting is a concern, especially when considering the high median home value and the corresponding high rental costs. The renter profile in this area likely includes a mix of young professionals, families, and individuals on fixed incomes. The high occupancy rate indicates that there is strong demand for rental properties, but the high price-to-FMR ratio suggests that many renters, particularly those relying on Section 8 vouchers, struggle to find affordable housing. #### Investor Angle From an investor’s perspective, the ZIP code 80501 presents a mixed picture. The FMRs are significantly lower than the actual market rents, which could make it challenging to achieve positive cash flow if strictly adhering to FMR guidelines. For example, a 2BR unit with an FMR of $1860 would need to generate substantial appreciation or other forms of income to justify the investment given the high purchase price of $408,182. However, the high occupancy rate and strong demand for rentals suggest that there is potential for steady cash flow if investors can secure tenants willing to pay above the FMR. The investment grade would depend on the ability to find a balance between FMR and market rents, as well as the willingness of landlords to accept Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units like 0BR and 1BR might offer better opportunities for cash flow. For instance, a 1BR unit with an FMR of $1540 might be more affordable for voucher holders compared to larger units, and still provide reasonable returns. 2. **Consider Alternative Financing Options**: Investors should explore financing options that can reduce the monthly mortgage burden. For example, a lower down payment or a higher interest rate might increase the monthly mortgage payment beyond the FMR, but alternative financing strategies such as hard money loans or creative lease-to-own arrangements could help bridge the gap. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the availability of Section 8 vouchers and any upcoming changes in FMR. This knowledge can help investors make informed decisions and potentially secure long-term leases. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow while adhering to FMR guidelines. While there is strong demand for rentals, the cost of entry is too high relative to the allowable rent under Section 8, which could result in financial losses or suboptimal returns. Investors might want to look for areas with a more favorable price-to-FMR ratio or where the rental market is less competitive.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.