Section 8 Fair Market Rent (FMR) for ZIP 80525 - 2027

Investment Score for ZIP 80525

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,710
1 Bedroom	$1,750
2 Bedrooms	$1,940
3 Bedrooms	$2,620
4 Bedrooms	$2,840
5 Bedrooms	$3,294
6 Bedrooms	$3,689
7 Bedrooms	$3,984
8 Bedrooms	$4,183

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,750	$246,135	0.71%	D
2BR	$1,940	$345,748	0.56%	F
3BR	$2,620	$541,194	0.48%	F
4BR	$2,840	$651,070	0.44%	F
5BR	$3,294	$768,072	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80525 (Fort Collins, CO) #### Section 8 Voucher Dynamics In ZIP code 80525, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1900 per month for 2026. This amount represents 24.9% of the median household income of $91,636. However, the actual rental market is significantly higher, with Zillow reporting a median price for a two-bedroom home at $351,139. The price-to-FMR ratio is 15.4x, indicating that the actual market rent far exceeds the FMR. This discrepancy creates significant constraints for voucher holders. A tenant using a Section 8 voucher would struggle to find a two-bedroom unit renting at $1900, given that the typical market rent is much higher. For example, a landlord might expect a monthly rent of around $2,900 based on the median home price, which is well above the FMR. Consequently, voucher holders are often limited to finding units that are either below their size preference or in less desirable areas where rents are lower. #### Affordability & Renter Profile ZIP code 80525 has a population of 54,211, with 41.6% of residents being renters. The occupancy rate is high at 96.5%, suggesting a tight rental market. Given the median household income of $91,636, many renters are likely to be middle-class individuals, young professionals, students, and families. The high occupancy rate and the significant percentage of renters indicate strong demand for rental properties, but the affordability issue is a concern. With the FMR for a three-bedroom unit at $2620, it represents only 28.6% of the median income, making it relatively affordable for those earning the median income. However, the actual market rent is considerably higher, putting pressure on renters' budgets. The tight market conditions mean that landlords have a significant advantage in setting higher rents. This situation is exacerbated by the fact that the FMR is substantially lower than the actual market rates, leading to a mismatch between what voucher holders can afford and what is available in the market. As a result, voucher holders may face challenges in securing suitable housing, particularly if they require larger units like three or four bedrooms. #### Investor Angle From an investor perspective, the ZIP code 80525 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1900, while the actual market rent is estimated to be around $2,900. This means that landlords who accept Section 8 vouchers will likely see lower cash flows compared to those who do not. However, the high demand for rentals and the tight market conditions could still make accepting vouchers a viable option, especially for investors looking to stabilize their cash flow and avoid vacancy risks. To determine the investment grade, we need to consider the potential returns and risks associated with accepting Section 8 vouchers. While the FMR is lower than market rates, the guaranteed income and low vacancy risk can provide a stable cash flow. Additionally, the high occupancy rate suggests that there is a steady demand for rental properties, which can be beneficial for long-term investments. However, the significant gap between FMR and market rates means that investors should carefully evaluate the financial implications of accepting vouchers. For instance, a two-bedroom unit renting at $1900 would generate a monthly cash flow of approximately $950 after accounting for the 50% contribution from the voucher holder (assuming the household income is at the median). This is lower than the potential market rent of $2,900, which would generate a cash flow of about $1,450 after the voucher holder’s contribution. Given these factors, the investment grade for ZIP code 80525 would be moderate. While the guaranteed income and low vacancy risk are attractive, the lower cash flow compared to market rents must be weighed against the potential for higher returns in a more flexible rental market. #### Specific Actionable Insights 1. **Target Smaller Units**: Investors should focus on smaller units such as one-bedroom apartments, which have an FMR of $1690. These units are more likely to align with market rents, providing better cash flow. For example, a one-bedroom unit renting at $1,800 would generate a cash flow of about $1,050 after the voucher holder’s contribution, which is closer to the potential market rent. 2. **Consider Location**: Given the high occupancy rate, investors should look for properties in areas where rents are slightly lower than the median but still above the FMR. This could include neighborhoods near colleges or universities, where student demand drives rental prices but may still be within reach of voucher holders. 3. **Evaluate Property Management Costs**: Since the FMR is significantly lower than market rents, investors should carefully assess property management costs and maintenance expenses. Ensuring that these costs are minimized can help improve the overall profitability of Section 8-focused investments. #### Bottom Line For investors focusing on Section 8 vouchers, ZIP code 80525 presents a mixed picture. The high demand and tight market conditions offer stability, but the lower cash flow due to the disparity between FMR and market rents makes it a moderate investment opportunity. **Recommendation**: **Hold**. Investors should hold existing Section 8 properties and consider targeting smaller units or areas with slightly lower rents to optimize cash flow. However, new investments should be approached cautiously, with careful consideration of the financial dynamics and potential for higher returns in a more flexible rental market.

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.