Location: Logan County, CO | Metro: Logan County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
In ZIP code 80726, the economics of Section 8 vouchers are quite distinct from the broader local rental market. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1,020 per month for fiscal year 2026. This figure represents the maximum amount that the housing authority will reimburse landlords for renting out a two-bedroom unit under the Section 8 program.
However, the local market rent for a similar two-bedroom unit is significantly lower at $810 per month, according to recent Census ACS data. This discrepancy highlights the potential financial implications for landlords participating in the Section 8 program.
To understand the actual payment structure, it's important to break down the components of the voucher reimbursement. The tenant is responsible for paying approximately 30% of their adjusted monthly income towards rent. In ZIP 80726, this means that if the tenant's portion is $300, the housing authority would cover the remainder up to the SAFMR limit. Additionally, utility allowances are factored into the reimbursement but are not typically included in the base rent calculation.
The SAFMR of $1,020 is the cap for the housing authority's reimbursement, regardless of the tenant's contribution. If the market rent is $810, the housing authority would pay the difference between the tenant's contribution and the market rent, not exceeding the SAFMR. For example, if the tenant contributes $300, the housing authority would pay $510, making the total $810. However, if the market rent exceeds the SAFMR, such as $1,100, the landlord would still only receive up to $1,020, leaving a shortfall of $80.
In ZIP 80726, where the market rent is below the SAFMR, landlords can expect a surplus when renting to Section 8 tenants. The surplus is calculated by subtracting the market rent ($810) from the SAFMR ($1,020), resulting in an additional $210 per month. This surplus can be seen as a benefit for landlords who might otherwise struggle to find tenants willing to pay the full market rent.
For small-portfolio investors considering Section 8 participation, it's crucial to factor in the administrative overheads and maintenance costs associated with managing Section 8 properties. While the SAFMR provides a higher reimbursement rate than the local market rent, it does not guarantee a profit without careful management and understanding of the program's rules.
In summary, landlords in ZIP 80726 can anticipate a $210 monthly surplus on a two-bedroom unit when renting to a Section 8 tenant, given the current SAFMR and local market conditions. This surplus can help offset some of the operational costs and provide a more stable income stream compared to non-voucher rentals.
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.