Location: Denver-Aurora-Centennial, CO | Metro: Colorado Springs, CO HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,620 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,330 |
| 3 Bedrooms | $3,230 |
| 4 Bedrooms | $3,700 |
| 5 Bedrooms | $4,292 |
| 6 Bedrooms | $4,807 |
| 7 Bedrooms | $5,192 |
| 8 Bedrooms | $5,452 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,330 | $447,893 | 0.52% | F |
| 3BR | $3,230 | $483,608 | 0.67% | D |
| 4BR | $3,700 | $548,184 | 0.67% | D |
| 5BR | $4,292 | $599,835 | 0.72% | D |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP 80831 in Peyton, CO, are significant and must be carefully considered. Tenant turnover is a notable concern, as the market rent stands at $2,624, while the Fair Market Rent (FMR) for FY 2024 is set at $2,540. This difference can lead to higher tenant churn, as individuals might struggle to afford the market rate once their voucher period ends.
Vacancy exposure is another critical issue. With an average Days on Market (DOM) of 70 days, landlords could face substantial periods where units remain unoccupied. This extended vacancy period can result in lost rental income and increased costs associated with marketing and maintaining empty properties.
Deferred maintenance is also a risk, given the typical home value of $542,572 and a median income of $132,467. Landlords should anticipate that tenants may have limited funds available for repairs beyond the scope of their vouchers, potentially leading to deferred maintenance issues that can accumulate over time.
However, these risks are somewhat mitigated by the high renter share in the area, which is 7.8%. High renter density often correlates with higher demand for housing vouchers, meaning there is a robust pool of potential tenants who can benefit from Section 8 assistance. This demand can help ensure consistent occupancy rates and reduce the likelihood of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.