Location: Greeley, 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 | $1,480 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,510 | $379,167 | 0.4% | F |
| 2BR | $1,680 | $443,398 | 0.38% | F |
| 3BR | $2,280 | $545,688 | 0.42% | F |
| 4BR | $2,480 | $707,150 | 0.35% | F |
| 5BR | $2,877 | $923,675 | 0.31% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 80524 in Fort Collins, CO, reveals two distinct gross-yield scenarios based on the Federal Market Rent (FMR) and the Zillow Observed Rent Index (ZORI).
Annualizing the 2BR FMR of $1540 for FY 2024, we find that the annual rental income would be $18,480. Given the median home value of $588,200, this translates into an implied gross-yield of approximately 3.14%. This calculation is derived from the formula: Gross Yield = (Annual Rental Income / Median Home Value) * 100.
On the other hand, using the ZORI of $1,995, the annual rental income would be $23,940. With the same median home value of $588,200, this results in an implied gross-yield of roughly 4.07%.
To determine which scenario is more realistic, consider the renter density and days on market (DOM) statistics. ZIP 80524 has a renter density of 35.7%, indicating a significant portion of residents are renters. Additionally, the DOM stands at 54 days, suggesting a relatively quick turnover rate for rental properties. These factors imply that landlords can expect steady demand for rental units, including those participating in the Section 8 program.
Given these conditions, the gross-yield of 4.07% derived from the ZORI appears more realistic. While the FMR scenario provides a lower gross-yield of 3.14%, it does not fully capture the potential rental income that could be achieved in the competitive market environment of Fort Collins. The higher yield from the ZORI reflects the actual rents being charged in the area, making it a better indicator of what landlords can reasonably expect when considering participation in the Section 8 program.
However, it's important to note that the final decision should factor in the specific terms of the Section 8 contract, including any limitations on rent increases, the administrative burden of managing Section 8 tenants, and the overall financial health of the property. Despite these considerations, the data suggests that the ZORI-based gross-yield is more reflective of current market realities in ZIP 80524.
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.