Section 8 Fair Market Rent (FMR) for ZIP 80906 - 2027

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

Investment Score for ZIP 80906

Monthly Rent (2BR)

$1,700

Median Price (2BR)

$294,747

1% Rule

0.58%

Annual Yield

6.92%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,170
1 Bedroom	$1,440
2 Bedrooms	$1,700
3 Bedrooms	$2,350
4 Bedrooms	$2,680
5 Bedrooms	$3,109
6 Bedrooms	$3,482
7 Bedrooms	$3,761
8 Bedrooms	$3,949

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,440	$247,983	0.58%	F
2BR	$1,700	$294,747	0.58%	F
3BR	$2,350	$415,899	0.57%	F
4BR	$2,680	$647,783	0.41%	F
5BR	$3,109	$886,350	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

37,502

Median Household Income

$89,984

Housing Units

16,600

Renter Percentage

34.7%

Occupancy Rate

93.6%

Renter Occupied

5,395

To determine if a landlord should invest in ZIP 80906 (Colorado Springs, CO) for Section 8 properties, follow this decision tree:

Does FMR $1890 (zip FY 2024) clear debt service on a $529,346 property?
- Yes: If the Fair Market Rent (FMR) of $1890 is sufficient to cover the debt service on a property valued at $529,346, then the investment is financially viable. Debt service includes mortgage payments, property taxes, insurance, and other fixed costs.
- No: If the FMR does not cover the debt service, investing in this ZIP code for Section 8 would not be advisable as it would result in financial losses.
Is market rent $1,581 (ZORI) above, at, or below FMR?
- Above: If the market rent (ZORI) of $1,581 is below the FMR of $1890, landlords can expect higher rents from non-Section 8 tenants, making the ZIP code attractive for a mixed portfolio.
- At: If the ZORI matches the FMR, landlords will receive fair market value for their properties without premium rents from non-Section 8 tenants.
- Below: If the ZORI is below the FMR, landlords may find that Section 8 rents are higher than typical market rates, which can be beneficial for stabilizing income.
Are 34.7% renters + 54-day DOM enough demand?
- It depends: With 34.7% of the population being renters and an average Days on Market (DOM) of 54 days, there is moderate demand. However, the viability of investment hinges on the number of active Section 8 vouchers and tenant preferences in the area.

If the FMR of $1890 clears the debt service on a property worth $529,346, then the answer is Yes. The ZORI of $1,581 being below the FMR suggests that landlords could benefit from slightly higher rents through Section 8, compared to typical market rates. Additionally, the presence of 34.7% renters indicates a reasonable level of demand, though the DOM of 54 days suggests some competition among rental listings. For a definitive decision, consider the local Section 8 waitlist length and tenant turnover rates.

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.