Section 8 Fair Market Rent (FMR) for ZIP 80537 - 2027

Investment Score for ZIP 80537

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	$1,480
1 Bedroom	$1,520
2 Bedrooms	$1,680
3 Bedrooms	$2,270
4 Bedrooms	$2,460
5 Bedrooms	$2,854
6 Bedrooms	$3,196
7 Bedrooms	$3,452
8 Bedrooms	$3,625

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	$1,520	$366,697	0.41%	F
2BR	$1,680	$388,276	0.43%	F
3BR	$2,270	$470,893	0.48%	F
4BR	$2,460	$573,276	0.43%	F
5BR	$2,854	$674,367	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80537 (Loveland, CO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Loveland, CO (ZIP 80537) in 2026 is set at $1620 for a two-bedroom unit. This figure represents 22.5% of the median household income in the area, which stands at $86,325. However, the actual rent for a two-bedroom unit on Zillow is significantly higher at $390,827, leading to a price-to-FMR ratio of 20.1x. This means that the actual market rent for a two-bedroom unit is approximately 20 times the FMR, indicating a substantial gap between what voucher holders can afford and the actual rental prices. Given this disparity, voucher holders face significant constraints in finding suitable housing within their budget. The FMR is designed to reflect the average rent for a modest apartment in a standard quality condition, but the reality is that many landlords may not accept vouchers due to the high discrepancy between FMR and market rates. Additionally, voucher holders might struggle to find units that meet the size and quality requirements while staying within the FMR limits. #### Affordability & Renter Profile In ZIP 80537, 36.5% of the population are renters, suggesting a notable demand for rental properties. With a median household income of $86,325, the majority of residents likely fall into the middle-income bracket. However, the high price-to-FMR ratio indicates that the rental market is quite tight, especially for lower-income individuals who rely on government assistance like Section 8 vouchers. The occupancy rate of 96.9% further supports the notion that the rental market is competitive and well-supplied, with very few vacant units available. This high occupancy rate could be a result of the strong demand for rentals in the area, driven by both the local workforce and possibly students, given Loveland's proximity to educational institutions. #### Investor Angle From an investor perspective, the ZIP code 80537 presents a challenging environment for cash flow if relying solely on FMRs. Given the actual market rent for a two-bedroom unit is $390,827, which is 20.1 times the FMR of $1620, it is clear that the rental market is far above the FMR levels. For investors focusing on Section 8 vouchers, the cash flow would be limited to the FMR, making it difficult to achieve profitability unless they can secure additional subsidies or manage costs effectively. The investment grade for this ZIP code would be considered low for Section 8-focused investors due to the high market rents and the potential difficulty in finding tenants willing to pay the FMR. Investors looking to capitalize on the rental market should consider targeting higher-end units that can command market rates, rather than focusing exclusively on Section 8 vouchers. #### Specific Actionable Insights 1. **Target Higher-End Rentals**: Given the high price-to-FMR ratio, investors should focus on acquiring properties that can be rented at market rates. A two-bedroom unit priced at $390,827 would provide a much better return compared to renting at the FMR of $1620. 2. **Consider Mixed-Income Developments**: Developments that cater to a mix of income levels, including those eligible for Section 8 vouchers and higher-income earners, could offer a balanced approach. This strategy allows investors to leverage the higher market rents while still providing affordable housing options. 3. **Seek Additional Subsidies**: Investors interested in Section 8 vouchers should explore opportunities for additional subsidies or partnerships with local government programs. These can help bridge the gap between FMR and market rates, improving the financial viability of such investments. #### Bottom Line For investors focused specifically on Section 8 vouchers, the ZIP code 80537 is not recommended for new purchases. The high market rents and the tight rental market make it difficult to achieve positive cash flow based on FMR alone. Instead, investors should consider holding existing properties or skipping this ZIP code in favor of areas where the price-to-FMR ratio is closer to a manageable level. If investors are willing to adapt their strategies to include higher-end rentals or mixed-income developments, then ZIP 80537 could present some opportunities. However, the primary recommendation remains to skip this ZIP code for purely Section 8-focused investments.

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.