Location: Morgan County, CO | Metro: Greeley, CO MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 80649 highlights a significant gap between the Fair Market Rent (FMR) set at $1250 for fiscal year 2024 and the market rent of $1,075 according to the Census ACS data. This represents a difference of $175, or approximately 16.3%, indicating that the FMR is higher than the current market rent.
The disparity suggests that landlords can potentially benefit from renting to voucher tenants. Since the FMR exceeds the actual market rent, landlords who accept Section 8 vouchers are effectively receiving a premium over what the open market would offer. This makes it a favorable strategy for maximizing rental yields. The guaranteed payment structure of the Section 8 program, coupled with the higher FMR, provides a stable and above-average income stream compared to non-voucher rentals.
In ZIP 80649, where only 16.2% of residents are renters, the demand for rental properties might be lower relative to homeownership. However, the median home value of $432,727 indicates a relatively high cost of owning property, which could push more potential homeowners into the rental market. This dynamic supports the idea that there is a segment of the population that would prefer to rent rather than buy due to the high cost of homeownership.
The absence of median income data complicates a full economic picture but does not detract from the yield opportunity presented by the Section 8 program. Landlords should consider the benefits of accepting vouchers, especially given the financial security they provide, in a market where the FMR is notably above the prevailing rents.
To summarize, the $175 differential between the FMR and market rent in ZIP 80649 presents an attractive scenario for landlords looking to optimize their rental yields. Accepting Section 8 vouchers allows them to tap into a government-supported income stream that surpasses typical market rates, thereby enhancing profitability and providing a steady cash flow.
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.