Location: Kit Carson County, CO | Metro: Kit Carson County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 80805 presents a unique challenge due to the lack of available median home value data. However, we can still derive some useful insights by comparing the Federal Market Rent (FMR) for a 2-bedroom apartment and the market rent figures.
The annualized FMR for a 2-bedroom unit in the 80805 ZIP code is $1,020 per month, based on the FY 2026 metro figures. This translates to an annual rental income of $12,240. Meanwhile, the Census ACS data indicates a market rent of $913 per month, equating to an annual rental income of $10,956.
To calculate the gross yield, we would typically divide the annual rental income by the median home value. Since the median home value is not available, we cannot provide a precise gross yield. However, we can infer that if the median home value were similar to other comparable areas, the gross yield would be lower using the market rent figure ($913) compared to the FMR ($1,020).
The renter density in ZIP 80805 is 24.6%, which suggests that there is a significant portion of homeownership in the area. This could indicate that the demand for rental properties might not be as high as in areas with higher renter density. The N/A-day DOM (days on market) implies that either the data is incomplete or the market is moving quickly, making it difficult to assess the typical time it takes for a rental property to find a tenant.
Given the 24.6% renter density, the FMR scenario appears more optimistic. It assumes a higher rental rate, which could be more likely for Section 8 properties due to the federal subsidy backing the rent payments. The market rent scenario is more conservative, reflecting the average rental rates without considering the specific support mechanisms in place for Section 8 units.
Landlords and small-portfolio investors should consider these figures when evaluating potential investments in ZIP 80805. While the FMR provides a higher gross yield, the actual performance will depend on the specifics of the property and the local rental market dynamics. The lower renter density suggests that reliance on market rents might be more prudent for general investment decisions outside of Section 8 participation.
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.