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 | $1,160 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $263,536 | 0.54% | F |
| 3BR | $1,880 | $372,995 | 0.5% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 80835 (Simla, CO) on the axes of yield and stability reveals a unique investment scenario. With a Fair Market Rent (FMR) of $1,510 for fiscal year 2024, it stands significantly above the local market rent of $1,042. This suggests a higher potential rental yield when considering the median home value of $342,874. The difference between FMR and market rent indicates that there is room to increase rents, potentially making it a high-yield area.
However, the stability axis presents a more nuanced picture. The ZIP code has a relatively low percentage of renters at 37.8%, which might imply less demand for rental properties. Additionally, the average daily days on market (DOM) data is not available, which could be critical for assessing how quickly properties are rented out. The median household income of $49,344 suggests that while there is some financial strain, the area is not entirely low-income, providing a balance.
Given these figures, ZIP 80835 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The discrepancy between the FMR and market rent indicates a possible opportunity for increasing rental income, but the low percentage of renters and the unknown speed of rental transactions suggest that the market may not support rapid property flips. Instead, the area offers a stable, albeit moderate, cash flow due to the balance between rental income potential and the existing economic conditions of the residents.
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.