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 | $1,550 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,760 | $510,838 | 0.34% | F |
| 3BR | $2,380 | $692,743 | 0.34% | F |
U.S. Census Bureau data (2024)
The real estate market in Drake, Colorado (ZIP 80532), is poised for stability and potential growth over the next 12-24 months, given the median home value of $559,821. This figure suggests that homeowners have significant equity, which typically translates into strong pricing power when selling. The fact that the percentage of listings reduced is not available could imply that sellers are holding firm on their asking prices, indicating a seller's market where demand meets or exceeds supply.
The median days on market (DOM) being unavailable points towards either a very active market where homes sell quickly, or a less volatile market where sales occur at a steady pace without prolonged listing periods. Both scenarios suggest that there is little need for price reductions, further supporting the notion of strong seller pricing power.
On the rental side, the Fair Market Rent (FMR) for ZIP 80532 is set at $1650 for fiscal year 2024. While the current market rent is not specified, the FMR can serve as a benchmark for assessing rental property investments. If the actual market rents align closely with the FMR, it indicates a balanced rental market where landlords can expect stable cash flows. However, if current rents are below the FMR, it signals an opportunity for landlords to increase rents gradually, aligning with the FMR.
For long-term hold investors, the setup in Drake, CO, suggests a realistic appreciation thesis. With the median home value at $559,821 and the strong pricing power indicated by the lack of reduced listings and quick sales, the foundation is laid for continued value appreciation. This is especially true if the local economy remains robust, supporting housing demand and maintaining the current median home value.
The combination of high median home values and a potentially stable rental market creates a favorable environment for both single-family and small-portfolio investors. They can leverage the strong seller's market to achieve higher sale prices upon exit, while also benefiting from consistent rental income that may rise to meet the FMR over time. This scenario supports a strategy focused on long-term appreciation and steady rental returns, rather than short-term flips or speculative gains.
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.