Section 8 Fair Market Rent (FMR) for ZIP 80550 - 2027

Investment Score for ZIP 80550

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	$1,490
1 Bedroom	$1,560
2 Bedrooms	$1,930
3 Bedrooms	$2,660
4 Bedrooms	$3,170
5 Bedrooms	$3,677
6 Bedrooms	$4,118
7 Bedrooms	$4,447
8 Bedrooms	$4,669

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,930	$422,676	0.46%	F
3BR	$2,660	$491,871	0.54%	F
4BR	$3,170	$572,060	0.55%	F
5BR	$3,677	$678,882	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80550 (Windsor, CO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Windsor, CO, as of 2026, is set at $1860 for a two-bedroom unit. This amount represents 17.7% of the median household income in the area, which is $126,132. However, the actual rental market in Windsor is significantly higher. The Zillow median price for a two-bedroom unit is $422,436, indicating a price-to-FMR ratio of 18.9x. This means that landlords would need to charge over 18 times the FMR to cover the mortgage payments on a typical two-bedroom property. Given these figures, it is clear that the actual rent prices far exceed the FMR. For instance, a landlord renting a two-bedroom unit at the Zillow median price would be charging approximately $1700 per month, which is already above the FMR of $1860. This creates significant constraints for voucher holders who can only afford units up to the FMR. Consequently, voucher holders may struggle to find suitable housing options in Windsor due to the high cost of living. #### Affordability & Renter Profile The population of Windsor is 46,456, with 20.6% of residents being renters. The occupancy rate is quite high at 96.4%, suggesting that there is a strong demand for rental properties. Given the median household income of $126,132, the majority of residents are likely to be employed in high-paying jobs, possibly in industries such as technology, healthcare, or education. However, the high price-to-FMR ratio indicates that the rental market is very tight. The average renter would need to pay around $1700 per month for a two-bedroom unit, which is nearly the same as the FMR but still leaves little room for flexibility. This tight market makes it challenging for low-income renters to find affordable housing, especially those relying on Section 8 vouchers. #### Investor Angle From an investor's perspective, the ZIP code 80550 presents a mixed picture. While the median home values are high, the rental market is also expensive, with the Zillow median price for a two-bedroom unit being $422,436. At a price-to-FMR ratio of 18.9x, it is evident that the rental income generated by these properties would barely cover the mortgage payments, let alone other expenses such as maintenance, insurance, and property taxes. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the total monthly costs associated with owning a rental property. Assuming a mortgage rate of 5% and a down payment of 20%, the monthly mortgage payment on a $422,436 property would be approximately $1700. Adding in estimated monthly expenses such as property taxes ($200), insurance ($100), and maintenance ($100), the total monthly cost would be around $2100. Since the FMR for a two-bedroom unit is $1860, this would result in a negative cash flow of $240 per month. Therefore, the ZIP code is not cash-flow positive at FMR. In terms of investment grade, Windsor appears to be a high-risk area for Section 8-focused investors. The mismatch between FMR and actual rent prices means that landlords may have difficulty finding tenants willing to pay the full rent required to break even. Additionally, the high occupancy rate suggests that there is limited vacancy to negotiate lower rents, making it even more challenging for investors to manage their properties profitably. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1500, while the Zillow median price for a one-bedroom unit is likely to be lower than that of a two-bedroom unit. This could provide a better opportunity for cash flow, although the overall investment risk remains high. 2. **Seek Out Subsidies**: Investors might want to explore additional subsidies or programs that can help offset the gap between FMR and actual rent prices. For example, some local governments offer additional assistance to landlords who accept Section 8 vouchers. Researching these programs could provide a way to improve profitability. 3. **Consider Alternative Investment Strategies**: Due to the high cost of living and the tight rental market, alternative investment strategies such as flipping homes or investing in commercial real estate might be more viable options. These strategies could potentially yield higher returns compared to traditional rental investments in Windsor. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 80550 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow, even with smaller units. Additionally, the high occupancy rate and limited availability of affordable housing suggest that finding suitable tenants who can utilize Section 8 vouchers will be challenging. Investors should look for areas with a more favorable price-to-FMR ratio and a less competitive rental market to maximize their chances of success.

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.