Section 8 Fair Market Rent (FMR) for ZIP 80544 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 80544 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $2160 per month for the fiscal year 2024. This SAFMR is specific to this ZIP code, meaning it reflects the rental rates determined appropriate for this particular area.

To understand what a landlord can expect from a Section 8 voucher, it's essential to break down the payment structure. The voucher does not cover the entire rent amount; instead, it reimburses the landlord for the difference between the tenant's portion and the total rent. Typically, the tenant is responsible for paying approximately 30% of their income towards rent. However, the exact amount depends on the tenant's income level. For instance, if a tenant's monthly income is $1500, they would contribute around $450 towards the rent.

The remaining portion of the rent, up to the SAFMR of $2160, is covered by the housing authority. This means that for a two-bedroom unit priced at $2160, the landlord would receive the full SAFMR minus the tenant's contribution. In addition to the base rent, there are utility allowances that vary but generally add an extra $300 to $400 per month to the reimbursement. These allowances cover electricity, gas, water, and sewer costs, and sometimes garbage collection.

To illustrate, let's assume a two-bedroom apartment is rented at the SAFMR of $2160, and the utility allowance is $350. If the tenant contributes $450, the housing authority would reimburse the landlord $2060 ($2160 - $450 + $350 utility allowance).

However, it's important to note that the local market rent for ZIP 80544 is currently unavailable, making it difficult to compare the SAFMR with prevailing market rates. This absence of market rent data could mean that the SAFMR either underestimates or overestimates the actual cost of renting a two-bedroom apartment in this area.

In conclusion, landlords should expect a reimbursement close to the SAFMR of $2160 for a two-bedroom apartment in ZIP 80544, adjusted for the tenant's contribution and any applicable utility allowances. Without specific market rent data, it's challenging to determine whether this will result in a surplus or a shortfall for landlords compared to the typical rental rates in the area.

Data Sources: FMR data from HUD (2027).

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.