Section 8 Fair Market Rent (FMR) for ZIP 80526 - 2027

Investment Score for ZIP 80526

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	$1,500
1 Bedroom	$1,540
2 Bedrooms	$1,700
3 Bedrooms	$2,300
4 Bedrooms	$2,490
5 Bedrooms	$2,888
6 Bedrooms	$3,235
7 Bedrooms	$3,494
8 Bedrooms	$3,669

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	$1,540	$208,594	0.74%	D
2BR	$1,700	$350,072	0.49%	F
3BR	$2,300	$515,193	0.45%	F
4BR	$2,490	$596,739	0.42%	F
5BR	$2,888	$728,020	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80526 (Fort Collins, CO) #### Section 8 Voucher Dynamics In ZIP code 80526, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1660 per month. This figure represents 22.5% of the median household income in the area, which stands at $88,686. However, the actual rental market in Fort Collins is significantly higher. The Zillow median price for a two-bedroom property is $352,645, indicating a price-to-FMR ratio of 17.7x. This suggests that the actual rent for a two-bedroom unit could be around $1660 * 17.7 = $29,282 annually, or approximately $2,440 per month. Given this disparity, voucher holders face significant constraints. The FMR for a three-bedroom unit is $2290, while a four-bedroom unit is $2430. These figures are likely far below the actual market rents, making it challenging for voucher recipients to find suitable housing. The high price-to-FMR ratio implies that landlords who accept Section 8 vouchers might struggle to compete with market rates, potentially limiting their pool of tenants. #### Affordability & Renter Profile The ZIP code has a population of 44,326, with 43.0% of residents being renters. This indicates a substantial demand for rental properties, contributing to a tight market. The occupancy rate of 96.9% further supports this notion, suggesting that there is little excess capacity in the rental market. Given the high proportion of renters and the tight market conditions, the competition for affordable housing is intense. The median household income of $88,686 places many residents in a middle-income bracket, where they might struggle to afford market-rate rentals but exceed the eligibility threshold for Section 8 assistance. This creates a scenario where the demand for affordable housing is high, but the supply of units that can be rented at FMR levels is limited. #### Investor Angle From an investor perspective, the ZIP code presents a mixed picture. While the rental market is robust, with high occupancy rates and strong demand, the actual rents are substantially higher than the FMRs. For instance, the actual rent for a two-bedroom unit is estimated at $2,440 per month, compared to the FMR of $1660. This means that landlords who accept Section 8 vouchers would be operating at a significant discount relative to market rates. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the cost of acquisition and maintenance. The median price for a two-bedroom home is $352,645, which translates to an annual mortgage payment of approximately $14,106 (assuming a 4.5% interest rate and a 30-year fixed mortgage). Adding in typical maintenance costs of about $1,000 per year, the total annual expenses would be around $15,106. At an FMR of $1660 per month, the annual rental income would be $19,920. Therefore, the net annual cash flow would be $19,920 - $15,106 = $4,814. However, this calculation assumes that the property can be rented out at the full FMR, which may not always be the case due to the tight market conditions and the potential difficulty in finding tenants willing to pay only the FMR. Additionally, the high price-to-FMR ratio suggests that the market is not aligned with FMR levels, making it challenging for investors to achieve positive cash flow solely based on FMR rents. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1470, which is still significantly lower than the estimated market rent. However, the demand for smaller units is likely to be more stable, and these units may be easier to rent out at FMR levels. 2. **Consider Mixed-Income Developments**: To ensure a steady stream of tenants, investors might want to consider developing mixed-income properties. This approach allows for a combination of market-rate and subsidized units, ensuring that the overall project remains financially viable. By including some units that can be rented at higher market rates, the cash flow from FMR units can be balanced. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help secure a steady stream of Section 8 voucher holders. This can provide a reliable tenant base, reducing the risk of vacancy. Additionally, understanding the local regulations and requirements for accepting Section 8 vouchers can help navigate any bureaucratic challenges. #### Bottom Line For Section 8-focused investors, the ZIP code 80526 presents a challenging environment. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow purely based on FMR rents. Therefore, the recommendation is to **Skip** this ZIP code for pure Section 8 investments. Instead, investors should look into areas with a more favorable price-to-FMR ratio or consider mixed-income developments to balance the financial risks associated with relying solely on FMR 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.