Location: Lincoln County, CO | Metro: Lincoln County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 80821 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1,040 per month for fiscal year 2026. This SAFMR is specific to this ZIP code and reflects a higher rental standard compared to the local market rent, which averages $875 according to the Census ACS.
A landlord participating in the Section 8 program will receive payments based on the SAFMR. However, the actual reimbursement depends on the tenant's portion of the rent and utility allowances. The tenant is typically responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500, the tenant would pay $450 towards rent. The remaining balance, up to the SAFMR, is covered by the housing authority.
In ZIP 80821, the housing authority also provides a utility allowance. For a two-bedroom apartment, this allowance can range from $200 to $300 per month, depending on the specific circumstances and needs of the tenant. Thus, the total amount a landlord might receive from a Section 8 voucher is the sum of the tenant's payment and the utility allowance, plus the housing authority's contribution to reach the SAFMR.
To illustrate, if the tenant pays $450 and the utility allowance is $250, the housing authority would cover the difference between these amounts and the SAFMR. In this case, the housing authority would pay $340 to meet the $1,040 SAFMR. Therefore, the landlord would receive $790 ($450 + $250 + $140) from the Section 8 voucher and the tenant combined.
Given the local market rent of $875, landlords in ZIP 80821 who participate in the Section 8 program would face a reimbursement gap of $85 per unit. This means they would need to adjust their expectations and possibly their profit margins, as the Section 8 reimbursement does not fully cover the local market rent.
To summarize, landlords in ZIP 80821 should understand that while the SAFMR for a two-bedroom apartment is $1,040, the actual reimbursement from a Section 8 voucher will be less due to the tenant's portion and utility allowances. They must factor in this reimbursement gap when considering participation in the program.
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.