Location: Colorado Springs, 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 | $1,000 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,230 | $234,719 | 0.52% | F |
| 2BR | $1,440 | $294,385 | 0.49% | F |
| 3BR | $1,990 | $388,073 | 0.51% | F |
| 4BR | $2,290 | $548,065 | 0.42% | F |
| 5BR | $2,656 | $616,949 | 0.43% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 80905 does not align favorably for landlords. The Fair Market Rent (FMR) set at $1480 for fiscal year 2024 is higher than the actual market rent, which stands at $1,357 according to ZORI. This discrepancy suggests that landlords might struggle to charge the FMR due to market realities.
Acquisition in ZIP 80905 is relatively affordable. The median home value is $373,386, making it accessible for small-portfolio investors looking to enter the market. Additionally, the days on market (DOM) average is 38 days, indicating a brisk pace of sales and potentially lower holding costs. The low price-cut share of 0.3% further supports the notion that homes are selling close to their original asking prices, suggesting strong value retention.
Tenant demand is robust in ZIP 80905. With a total population of 16,672, over half (51.8%) are renters. This significant renter share ensures a steady pool of potential tenants, reducing the risk of vacancy and providing landlords with a reliable source of income.
In summary, while the rent math presents a challenge due to the gap between FMR and market rent, the affordability of acquisitions and the strong tenant demand make ZIP 80905 an attractive area for landlords and small-portfolio investors. Despite the lower market rents, the high renter share and brisk real estate market provide a solid foundation for investment success.
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.