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 | $1,080 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,430 | $248,957 | 0.57% | F |
| 2BR | $1,560 | $371,830 | 0.42% | F |
| 3BR | $2,160 | $520,808 | 0.41% | F |
| 4BR | $2,480 | $645,103 | 0.38% | F |
| 5BR | $2,877 | $761,867 | 0.38% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 80863 (Woodland Park, CO) does not favor landlords. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,650, whereas the market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1,974. This discrepancy means that landlords participating in the Section 8 program would receive less than the market rate, reducing potential profitability.
Acquisition costs in this area are relatively high, with a median home value of $531,885. However, the days on market (DOM) average at 49 days suggests that homes sell quickly once listed. Additionally, the low price-cut share of 0.2% indicates that homes are typically sold close to their asking price, which could be beneficial for investors looking to enter the market without significant negotiation.
Tenant demand is moderate in Woodland Park. With a population of 12,329, the renter share is 22.1%, translating to approximately 2,725 renters. This number provides a reasonable pool of potential tenants for landlords, though it is important to note that the demand may not be sufficient to offset lower rental income from the Section 8 program.
In conclusion, while the acquisition process in ZIP 80863 is efficient and homes sell quickly at near-asking prices, the rent math does not align favorably with the Section 8 program. Landlords will receive significantly less than the market rent, which could impact overall investment returns. Despite this, the presence of a moderate tenant base ensures steady occupancy, making this location suitable for investors who prioritize stability over high returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.