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 | $1,600 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,460 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,640 | $304,716 | 0.54% | F |
| 2BR | $1,820 | $379,326 | 0.48% | F |
| 3BR | $2,460 | $479,464 | 0.51% | F |
| 4BR | $2,670 | $568,691 | 0.47% | F |
| 5BR | $3,097 | $671,474 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 80538, located in Loveland, CO, presents an interesting scenario when viewed from the renter's perspective. The median household income in this area stands at $86,671. Considering the market rate rent, known as ZORI (Zillow Observed Rent Index), is set at $2,048, it becomes evident that the average renter faces significant financial challenges.
To put this into context, let’s compare the market rate to the federal voucher payment standard, which is based on the Fair Market Rent (FMR). For ZIP 80538, the FMR for the fiscal year 2024 is set at $1,650. This means that the market rate is approximately $398 higher than what the government deems fair for rental assistance. This discrepancy highlights a notable affordability gap for renters who rely on vouchers.
With 30.6% of the population renting and a total population of 50,110, the competition among landlords in ZIP 80538 is substantial. Landlords must be aware that the higher market rate rent might deter potential tenants who are looking for more affordable housing options. On the other hand, accepting voucher payments could attract a steady stream of tenants, albeit at a lower rental price point.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While accepting voucher payments might mean receiving less than the market rate, it ensures a reliable source of income and reduces vacancy rates. Landlords should weigh the benefits of guaranteed payments against the potential for higher cash rents, keeping in mind the demographic realities of the 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.