Section 8 Fair Market Rent (FMR) for ZIP 80632 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP 80632, located in Greeley County, Colorado, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1530. This figure represents the maximum amount that a landlord can charge a tenant who uses a Section 8 housing choice voucher.

To understand the actual payment dynamics, it's important to break down the components of a voucher. The tenant is responsible for paying 30% of their adjusted income towards rent. For simplicity, let’s assume an average adjusted income of $1000 per month for tenants in this ZIP code, leading to a tenant contribution of $300. The remaining balance is covered by the housing authority up to the SAFMR limit. Thus, if the total rent is $1530, the housing authority would pay $1230 ($1530 - $300).

In addition to the base rent, there are utility allowances that need to be considered. These vary based on the type of utilities required and the size of the unit. For a two-bedroom apartment, the utility allowance might range from $200 to $300 monthly. This allowance is also paid by the housing authority directly to the tenant, to cover their utility expenses. Therefore, if we take a middle ground and assume a utility allowance of $250, the total reimbursement a landlord could receive for a two-bedroom unit would be $1480 ($1230 + $250).

This means that the landlord will be reimbursed $1480 per month, leaving a gap of $50 between the SAFMR and the total reimbursement. This $50 is the shortfall the landlord must absorb, as the SAFMR is $1530 but the actual reimbursement is $1480. It's crucial to note that this calculation assumes the tenant's income is such that they contribute exactly 30% towards rent. If the tenant's income is lower, their contribution will be less, increasing the reimbursement gap.

Given that the local market rent data is currently unavailable, it's challenging to provide a direct comparison. However, it's worth noting that the SAFMR is designed to reflect the local rental market conditions, ensuring that rents are affordable for low-income families while still being reasonable for landlords. In practice, landlords should expect to receive a consistent payment each month, albeit slightly below the SAFMR due to the structure of the voucher program.

In summary, for a two-bedroom apartment in ZIP 80632, landlords can expect a reimbursement of $1480 per month from the Section 8 program, resulting in a $50 gap from the SAFMR of $1530. This model provides stability and predictability in rental income, though it comes with a small financial trade-off.

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.