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 | $1,440 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,620 | $349,963 | 0.46% | F |
| 2BR | $1,920 | $475,969 | 0.4% | F |
| 3BR | $2,540 | $687,305 | 0.37% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate picture for ZIP 80510, Allenspark, CO, reveals significant differences between using Fair Market Rent (FMR) and market rent figures. For a 2-bedroom unit, the annualized FMR is $1870 multiplied by 12, equating to $22,440 per year. In contrast, the Census ACS market rent figure stands at $1,311 annually. Using these figures against the median home value of $501,300, we can derive two distinct gross-yields.
First, employing the FMR figure, the implied gross-yield is calculated as follows: $22,440 divided by $501,300 equals approximately 4.48%. This suggests that if an investor were to rely solely on FMR payments, they could expect a gross-yield of about 4.48%. However, when using the market rent figure of $1,311, the annual rental income would be $15,732, leading to a gross-yield of roughly 3.14% ($15,732 / $501,300).
Given the 22.1% renter density in Allenspark, it's important to consider how realistic these yields are. The higher gross-yield based on FMR assumes that the government will cover the entirety of the rent at the FMR level. However, this scenario does not reflect the actual market conditions where only a portion of renters might qualify for Section 8 assistance. Therefore, the gross-yield of 4.48% is idealistic and less likely to occur consistently across all units in a portfolio.
The more realistic gross-yield is likely closer to the market rent figure of 3.14%, especially considering the low day DOM (days on market) indicates a competitive rental market. Landlords should prepare for lower yields due to the limited number of Section 8 tenants relative to the total rental population. While the potential for higher yields exists, it's prudent to base investment decisions on the more conservative estimate derived from market rents.
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.