Section 8 Fair Market Rent (FMR) for ZIP 80864 - 2027

Location: Colorado Springs, CO | Metro: Colorado Springs, CO HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$990
1 Bedroom$1,200
2 Bedrooms$1,450
3 Bedrooms$2,030
4 Bedrooms$2,320
5 Bedrooms$2,691
6 Bedrooms$3,014
7 Bedrooms$3,255
8 Bedrooms$3,418

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
1,505
Median Household Income
$66,541
Housing Units
727
Renter Percentage
11.7%
Occupancy Rate
91.7%
Renter Occupied
78
Based on the provided data, the analysis for ZIP 80864 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 80864 for fiscal year 2024 is set at $1,160, while the Census ACS data indicates a market rent of $1,571. This discrepancy amounts to a difference of $411, which represents approximately 35.4% of the FMR.

The gap between the FMR and the market rent makes it clear that landlords in ZIP 80864 who accept Section 8 vouchers will be renting their properties below the open-market rates. This can result in a net loss if not properly managed. For instance, a landlord renting a property for $1,160 under the FMR scheme instead of the market rate of $1,571 would lose $411 monthly, or 26.1% of the potential rental income.

Given the demographic context of ZIP 80864, where 11.7% of residents are renters, and the median household income stands at $66,541, it is crucial for landlords to understand the implications of accepting Section 8 vouchers. The lower FMR compared to the market rent means that landlords must carefully consider the additional administrative costs and potential maintenance issues associated with voucher tenants.

To summarize, the disparity between the FMR and the market rent in ZIP 80864 presents a challenge for landlords. Accepting Section 8 vouchers means operating at a lower yield, necessitating a thorough assessment of the property's financial viability and the landlord's willingness to participate in the subsidized housing 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.