Location: Lincoln County, CO | Metro: Colorado Springs, CO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 80832 highlights several potential issues that landlords and small-portfolio investors should be aware of. First, tenant turnover could pose a significant challenge due to the discrepancy between the market rent of $1,042 and the Fair Market Rent (FMR) of $1,200 for FY 2024. This gap suggests that tenants might struggle to find alternative housing if their financial situations change, leading to higher turnover rates.
Vacancy exposure is another concern, as the Days on Market (DOM) is listed as N/A. This indicates a lack of recent data on how long properties typically remain vacant before being rented out. A prolonged vacancy can lead to significant financial losses for landlords, especially when considering the cost of maintaining an empty property.
Deferred maintenance is also a risk factor. With a typical home value of $463,056 and a median income of $90,556, residents may have limited resources to cover maintenance costs, particularly those who rely on Section 8 vouchers. This could result in landlords having to bear the brunt of repair and maintenance expenses, which can be substantial over time.
However, these risks must be weighed against the high renter share of 6.5%. High renter density usually translates into greater demand for rental properties, including those that accept Section 8 vouchers. This demand can provide a stable source of income and reduce the likelihood of extended vacancies.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 80832 presents a mitigating factor. The overall verdict for a first-time Section 8 landlord in this area is moderate risk.
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.