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 median income in ZIP code 80742 stands at $82,500, which places it above the national average. However, when considering the market rate for rent, which is $768 according to Census ACS data, it becomes evident that the typical household income significantly outpaces the rental costs. This suggests that residents have disposable income beyond their housing expenses.
In contrast, the Federal Market Rent (FMR) standard set for voucher payments in ZIP 80742 for fiscal year 2024 is $1250. This amount is notably higher than the actual market rate, indicating that voucher holders could potentially access better quality or larger living spaces compared to the average renter paying $768.
With only 17.7% of the population being renters and a total population of 204, the number of potential tenants is limited. This means that landlords face a smaller pool of prospective renters, leading to increased competition among property owners to attract and retain tenants.
The disparity between the market rate and the voucher payment standard highlights an opportunity for landlords. By accepting vouchers, landlords can command higher rents, closer to the $1250 FMR, compared to the lower market rate of $768. This strategy allows landlords to maximize their rental income while still offering affordable housing options to those who qualify for assistance.
However, landlords must also consider the administrative complexities associated with voucher programs. These include stricter regulations, background checks, and possibly longer lease durations. Despite these challenges, the financial benefit of receiving higher rent payments through voucher programs can outweigh the inconvenience for many landlords.
For landlords and small-portfolio investors, the takeaway is clear: accepting Section 8 vouchers can be a financially advantageous strategy given the favorable FMR compared to the local market rate. This approach can help secure steady income and mitigate the risks associated with a competitive and small rental market.
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.