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 | $1,750 |
| 1 Bedroom | $1,800 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,690 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,990 | $398,253 | 0.5% | F |
| 3BR | $2,690 | $551,678 | 0.49% | F |
| 4BR | $2,910 | $744,269 | 0.39% | F |
| 5BR | $3,376 | $929,733 | 0.36% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate picture for ZIP 80528 (Fort Collins, CO) reveals some key insights into the potential returns for landlords and small-portfolio investors. For FY 2024, the Fair Market Rent (FMR) for a 2-bedroom apartment is set at $2020 annually, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2,176 per month.
To calculate the implied gross yield based on these figures, we first annualize the market rents. The annualized Section 8 rent for a 2BR unit would be $2020 * 12 = $24,240. The annualized market rent would be $2,176 * 12 = $26,112. Given the median home value in the area is $648,739, we can derive the gross yields as follows:
The difference between the two gross yields is 0.28 percentage points. However, considering the specific characteristics of the Fort Collins rental market, it's important to note that the reality may lean more towards the Section 8 gross yield scenario. The renter density in ZIP 80528 is 32.9%, indicating a significant portion of the population relies on rental housing. Additionally, the Days on Market (DOM) statistic of 29 days suggests that properties listed for rent are quickly occupied, which could imply a competitive environment where Section 8 rates might be more common.
In conclusion, while the market rent offers a slightly higher gross yield, the Section 8 gross yield of 3.74% appears to be more reflective of the actual conditions in ZIP 80528. Landlords and investors should consider these factors when evaluating potential investments in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.