Location: Greeley, CO | Metro: Greeley, CO MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,240 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,760 |
| 5 Bedrooms | $3,202 |
| 6 Bedrooms | $3,586 |
| 7 Bedrooms | $3,873 |
| 8 Bedrooms | $4,067 |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP 80620 (Evans, CO) for Section 8 properties, follow this decision tree based on the provided data.
1) Does the Fair Market Rent (FMR) of $1,660 cover the debt service on a $394,933 property?
No: The FMR of $1,660 does not sufficiently cover the debt service on a property valued at $394,933. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. At an average annual interest rate of 5%, the mortgage payment alone would be approximately $2,000 per month, which exceeds the FMR. This makes it unfeasible to rely solely on Section 8 tenants to cover these expenses.
Yes: If your debt service is lower due to a smaller mortgage, lower interest rates, or other factors, then the FMR of $1,660 could potentially cover your costs. However, this scenario is less likely given the typical cost structure of properties in this price range.
It Depends: If you have a significantly lower debt service, the FMR might suffice. But, for most cases involving a property priced around $394,933, the FMR will not be sufficient.
2) Is the market rent ($1,709 ZORI) above, at, or below the FMR?
Above: The ZORI (Zillow Rent Index) of $1,709 is slightly above the FMR of $1,660. This indicates that non-Section 8 tenants can pay more, providing a potential opportunity to diversify your tenant mix and mitigate financial risks associated with relying solely on government subsidies.
At or Below: If the ZORI were at or below the FMR, it would suggest limited upside potential for renting to non-Section 8 tenants. However, since it is above, this point is not applicable.
3) Are 32.5% renters and a 39-day Days on Market (DOM) enough demand?
Yes: With 32.5% of residents being renters and a relatively low DOM of 39 days, there is a decent level of demand in the area. This suggests that rental units are filling quickly, indicating a healthy rental market.
No: If the percentage of renters was significantly lower or the DOM much higher, it might indicate insufficient demand. However, with the current figures, demand appears to be adequate.
It Depends: While the 32.5% of renters and 39-day DOM suggest reasonable demand, the overall viability still hinges on the first two points. If the FMR cannot cover debt service, and market rent is only marginally higher, the demand must be strong enough to ensure rapid turnover and minimal vacancy periods.
In conclusion, investing in ZIP 80620 for Section 8 properties is primarily dependent on whether the FMR can cover your debt service. Given the ZORI is slightly above the FMR, there is potential to diversify your tenant base, and the current demand signals a moderately active rental market.
Data Sources: FMR data from HUD (2027). 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.