Location: Greeley, CO | Metro: Denver-Aurora-Centennial, 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 | $1,480 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,890 | $406,096 | 0.47% | F |
| 3BR | $2,470 | $679,009 | 0.36% | F |
| 4BR | $2,750 | $763,200 | 0.36% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 80642, located in Hudson, CO within the Greeley, CO Metropolitan Statistical Area (MSA), reveals several key points regarding its viability for Section 8 real-estate investment.
The rent math does not favor Section 8 participation. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1790, while the actual market rent, according to the Census ACS, stands at $1218. This means landlords would be required to charge a rate significantly above the local average, which could deter potential tenants who are accustomed to lower rents.
Acquisition costs in ZIP 80642 are high, with a median home value of $703,801. However, the lack of available data on days on market (DOM) and the percentage of homes needing price cuts suggests that the housing market might be stable, but it also means there's limited insight into how quickly properties sell or if they need price adjustments to attract buyers. Given the high median home value, it's clear that purchasing property here will be expensive, especially for small-portfolio investors.
Tenant demand in ZIP 80642 is moderate. With a total population of 4,466, the renter share is 11.4%. This indicates that while there is a base of potential tenants, the overall demand is relatively low due to the smaller number of renters compared to the total population.
Verdict: ZIP 80642 presents challenges for Section 8 real-estate investment. The discrepancy between the FMR and the market rent suggests that landlords may struggle to find willing tenants, while the high median home value makes acquisitions costly. The moderate tenant demand provides some assurance of occupancy, but the overall economic landscape leans against the profitability of Section 8 participation in this area.
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.