Location: Fort Collins-Loveland, CO | Metro: Fort Collins-Loveland, 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 | $1,430 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,470 | $357,601 | 0.41% | F |
| 2BR | $1,620 | $449,071 | 0.36% | F |
| 3BR | $2,190 | $548,196 | 0.4% | F |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 in ZIP code 80515, located in Drake, CO, Larimer County, it's essential to break down the components involved. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1430 for fiscal year 2024. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent.
The SAFMR is determined based on local rental market conditions and is specifically tailored to the ZIP code level, meaning it accurately reflects the costs associated with renting in ZIP 80515. However, the local market rent data is currently unavailable, which means we cannot directly compare the SAFMR to the average rent in the area. This discrepancy can be significant because if the market rent exceeds the SAFMR, landlords may face a financial shortfall.
A Section 8 voucher covers a portion of the rent, but there are additional factors to consider. Tenants are typically responsible for paying 30% to 40% of their income toward rent, depending on their circumstances. This amount is known as the tenant portion. For instance, if a tenant has an income of $1000 per month, they would pay between $300 and $400 toward rent. The remainder is paid by the government, up to the SAFMR limit.
In addition to covering the rent, the voucher also includes utility allowances. These allowances vary by region and household size but generally provide a fixed amount per month to cover utilities such as electricity, water, and gas. In ZIP 80515, the utility allowance is not specified, so it must be calculated based on the standard formula used by the U.S. Department of Housing and Urban Development (HUD).
To illustrate, let's assume a tenant with an income of $1000 per month is responsible for 30% of their income, or $300. If the total rent plus utilities is $1430, then the government would pay the remaining $1130. However, if the actual rent is higher than $1430, the landlord would need to absorb the difference. Conversely, if the actual rent is lower than $1430, the landlord might receive a surplus, though the government payment would still be capped at $1430.
The typical reimbursement gap or surplus in ZIP 80515 depends on the actual market rents. Since the local market rent data is not available, it's impossible to determine if landlords will receive the full SAFMR amount or if there will be a shortfall. To ensure financial stability, landlords should aim to keep their rent within or slightly below the SAFMR to avoid any gaps in reimbursement.
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.