Section 8 Fair Market Rent (FMR) for ZIP 80631 - 2027

Investment Score for ZIP 80631

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	$1,090
1 Bedroom	$1,150
2 Bedrooms	$1,450
3 Bedrooms	$2,010
4 Bedrooms	$2,420
5 Bedrooms	$2,807
6 Bedrooms	$3,144
7 Bedrooms	$3,396
8 Bedrooms	$3,566

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,150	$250,338	0.46%	F
2BR	$1,450	$305,141	0.48%	F
3BR	$2,010	$358,444	0.56%	F
4BR	$2,420	$388,943	0.62%	D
5BR	$2,807	$427,795	0.66%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80631 (Greeley, CO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Greeley, CO (ZIP 80631) is set by HUD for 2026 as follows: - 0BR: $1030 - 1BR: $1090 - 2BR: $1380 (which is 30.3% of the median household income) - 3BR: $1930 - 4BR: $2290 These figures represent the maximum rent that a Section 8 voucher holder can pay for housing in the area. However, comparing these FMRs to actual rental prices provides insight into the dynamics of the voucher system. For instance, the Zillow median price for a 2BR home in Greeley is $307,869, which translates to a monthly mortgage payment of approximately $1,650 assuming a 4.5% interest rate and a 20% down payment. This means that landlords would need to charge significantly above the FMR to cover their costs, leading to potential challenges for voucher holders who may struggle to find units within their budget. Additionally, the occupancy rate of 94.5% suggests that there is limited vacancy, making it even harder for voucher holders to secure housing. The high demand and low vacancy rates create a competitive environment where landlords might prefer tenants who do not require vouchers due to the administrative burden and perceived risks associated with them. #### Affordability & Renter Profile Given that 53.3% of the population in Greeley are renters, the rental market is significant. The median household income of $54,591 indicates that many residents are likely to be price-sensitive. The FMR for a 2BR unit is $1380, which is 30.3% of the median income, suggesting that a substantial portion of the population can afford this level of rent. However, the reality is that actual rental prices are often higher than the FMR, especially in a tight market like Greeley. The high occupancy rate of 94.5% implies that the market is relatively tight, with few vacant units available. This tightness could lead to upward pressure on rental prices, further exacerbating affordability issues for low-income renters. Given the high percentage of renters and the relatively low median income, the market is likely to be challenging for those seeking affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 80631 presents both opportunities and challenges. The Zillow median price for a 2BR home is $307,869, which translates to a monthly mortgage payment of around $1,650. This is significantly higher than the FMR of $1380 for a 2BR unit. Therefore, if an investor were to purchase a property and rent it out using Section 8 vouchers, they would face a negative cash flow situation unless they can find ways to reduce expenses or increase revenue. The price-to-FMR ratio of 18.6x for a 2BR unit highlights the disparity between the cost of owning a property and the rent that can be charged under the Section 8 program. This ratio suggests that the investment grade for properties in this ZIP code is relatively low, as the returns would be minimal compared to the initial investment and ongoing costs. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as 0BR or 1BR apartments. These units have lower FMRs ($1030 and $1090 respectively), which might allow for better cash flow management. For example, a 1BR unit at $1090 per month could potentially cover a portion of the mortgage payment, utilities, and maintenance costs, depending on the property's location and condition. 2. **Seek Government Subsidies**: Investors should explore additional government subsidies and programs that might help offset the negative cash flow. Programs like the Low-Income Housing Tax Credit (LIHTC) can provide financial incentives that make Section 8 properties more attractive. Additionally, local incentives or grants might be available to support affordable housing initiatives. 3. **Consider Mixed-Income Developments**: Developing mixed-income properties could be a viable strategy. By including a mix of Section 8 units and market-rate units, investors can balance the lower rents from Section 8 vouchers with higher rents from other tenants. This approach can help achieve overall profitability while still providing affordable housing options. #### Bottom Line For Section 8-focused investors, the ZIP code 80631 presents a challenging environment due to the high price-to-FMR ratio and the tight rental market. The recommendation for this ZIP code is to **Skip** investing in properties solely intended for Section 8 tenants, given the negative cash flow implications. Instead, investors should consider alternative strategies such as mixed-income developments or smaller units where the FMR is closer to the actual rental costs. These approaches can help mitigate the financial risks associated with relying solely on Section 8 vouchers for rental income.

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.