Location: Greeley, 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 | $2,160 |
| 1 Bedroom | $2,220 |
| 2 Bedrooms | $2,460 |
| 3 Bedrooms | $3,330 |
| 4 Bedrooms | $3,610 |
| 5 Bedrooms | $4,188 |
| 6 Bedrooms | $4,691 |
| 7 Bedrooms | $5,066 |
| 8 Bedrooms | $5,319 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,460 | $355,028 | 0.69% | D |
| 3BR | $3,330 | $451,376 | 0.74% | D |
| 4BR | $3,610 | $501,043 | 0.72% | D |
| 5BR | $4,188 | $537,260 | 0.78% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering Wellington, CO (ZIP 80549), might raise several objections regarding the feasibility of investing in properties under Section 8. Here's how the data addresses those concerns:
Objection 1: Will Fair Market Rent (FMR) of $2,450 for the fiscal year 2024 cover the mortgage on a home priced at $469,666?
The FMR of $2,450 must be compared against the actual mortgage payments. For a $469,666 home, assuming a typical 20% down payment and a 30-year fixed-rate mortgage at an average interest rate, the monthly mortgage payment would likely range between $1,500 and $1,800. This means that the FMR of $2,450 is sufficient to cover the mortgage and leaves room for additional expenses such as maintenance, property taxes, and insurance.
Objection 2: Is there enough renter demand at 16.7%?
The 16.7% rental rate in Wellington, CO, indicates a moderate level of demand. However, it's crucial to understand that the rental rate alone does not fully capture the potential tenant pool. The local economy, job opportunities, and population growth also play significant roles. To provide a complete picture, we need additional data on these factors. Nonetheless, the current rental rate suggests that there is a reasonable demand for rentals, which can support Section 8 investments.
Objection 3: Will vouchers keep pace with market rents of $2,425?
The key here is the consistency of voucher payments relative to market rents. If the voucher amount is close to or exceeds $2,425, then it will indeed keep pace with market rents. However, the data provided does not specify the exact voucher amount for Wellington, CO. Typically, voucher amounts are adjusted annually to reflect changes in the cost of living and housing market conditions. It is advisable to monitor local HUD announcements for updates on voucher adjustments to ensure they align with market rents.
In conclusion, while the data supports the notion that FMR can cover mortgage costs comfortably, the rental demand and voucher adequacy require further investigation into local economic trends and specific HUD guidelines for the area. Investing in Section 8 properties in Wellington, CO, remains viable but should be approached with due diligence on these aspects.
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.