Location: Fort Collins-Loveland, CO | Metro: Boulder, CO MSA
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 | $1,470 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,610 |
| 4 Bedrooms | $3,030 |
| 5 Bedrooms | $3,515 |
| 6 Bedrooms | $3,937 |
| 7 Bedrooms | $4,252 |
| 8 Bedrooms | $4,465 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,670 | $254,902 | 0.66% | D |
| 2BR | $1,960 | $475,551 | 0.41% | F |
| 3BR | $2,610 | $650,606 | 0.4% | F |
| 4BR | $3,030 | $810,343 | 0.37% | F |
| 5BR | $3,515 | $1,100,268 | 0.32% | F |
U.S. Census Bureau data (2024)
The ZIP code 80503, located in Longmont, Colorado, presents an interesting scenario for both renters and landlords when it comes to housing affordability. The median income for a household in this area stands at $113,620. Given the market rate rent, known as the Zillow Observed Rent Index (ZORI), at $1,838 per month, it is important to assess whether this figure is sustainable for local residents.
To put this into context, let us consider the financial burden on a household. Assuming a typical household spends no more than 30% of their income on housing, which is a widely accepted guideline, a household earning the median income would allocate approximately $2,840.50 per month towards rent and utilities. This means the market rate rent of $1,838 is indeed affordable for many households in the area, leaving them with additional funds for other living expenses.
However, the situation changes when we look at the Federal Market Rate (FMR) for the zip code, which is set at $2,160 for fiscal year 2024. This is the maximum amount that Section 8 vouchers will cover. Comparing this to the ZORI of $1,838, there is a discrepancy where the voucher amount exceeds the market rate. This suggests that while renters have sufficient income to cover the market rate, they might find it challenging to pay the difference if they wish to live in a property priced higher than the voucher limit.
With 33.9% of the population being renters and a total population of 35,846, the competition among landlords is significant. The affordability gap between the ZORI and the FMR implies that landlords who rely solely on cash-paying tenants may face less competition compared to those who cater to voucher recipients. However, the latter group still has a viable market given the generous FMR coverage relative to the ZORI.
Landlords considering their strategy should take note of these dynamics. For those looking to attract cash-paying tenants, setting rents closer to the ZORI can ensure a steady stream of occupants without relying on government subsidies. On the other hand, landlords who choose to participate in the Section 8 program benefit from guaranteed payments up to the FMR, though they must be prepared to deal with the administrative requirements and potential limitations on rental pricing.
The takeaway for landlords is that both voucher and cash-pay strategies have their merits in ZIP 80503. Landlords can either leverage the higher income levels of the area to charge market rates or opt for the stability of Section 8 vouchers, knowing that the FMR provides a buffer above the current market rate. This flexibility allows landlords to tailor their approach based on their investment goals and risk tolerance.
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.