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 | $1,450 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,400 |
| 5 Bedrooms | $2,784 |
| 6 Bedrooms | $3,118 |
| 7 Bedrooms | $3,367 |
| 8 Bedrooms | $3,535 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,480 | $313,140 | 0.47% | F |
| 2BR | $1,640 | $422,007 | 0.39% | F |
| 3BR | $2,220 | $523,021 | 0.42% | F |
| 4BR | $2,400 | $601,369 | 0.4% | F |
| 5BR | $2,784 | $692,940 | 0.4% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 80521, Fort Collins, CO, involve understanding the SAFMR (Small Area Fair Market Rent) and comparing it to the local market rent. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1510. This figure represents the maximum amount that a Section 8 voucher will cover for rent in this specific ZIP code. In contrast, the local market rent, as measured by ZORI (Zillow Rent Index), is $2,291.
A landlord participating in the Section 8 program should be aware that the voucher does not cover the entire rent. Instead, it covers the difference between the tenant's portion and the total rent, up to the SAFMR limit. The tenant is required to pay 30% of their adjusted income towards rent. If the tenant’s portion plus utility allowances exceeds the SAFMR, the landlord will not receive additional funds beyond the $1510 cap.
To illustrate, let's assume a tenant has an adjusted income of $1,500 per month. Their portion would be 30% of $1,500, which is $450. Utility allowances vary but can typically add another $100 to $200 to the tenant's contribution. Thus, if we take a conservative estimate of $150 for utilities, the total tenant contribution would be $600. The voucher would then cover the remaining $910 to reach the SAFMR of $1510.
This means that even though the local market rent is $2,291, the landlord will only receive up to $1510 from the voucher program. The reimbursement gap for a landlord renting out a two-bedroom unit at market rates would be $781 per month ($2,291 - $1510).
In summary, landlords in ZIP 80521 must factor in the reimbursement gap when deciding whether to participate in the Section 8 program. While there are benefits such as guaranteed payment from the government, the economic reality is that the landlord will receive less than the local market rent for a two-bedroom unit, leaving a significant reimbursement gap of $781 per month.
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.