Section 8 Fair Market Rent (FMR) for ZIP 80906 - 2027
Location: Teller County, CO | Metro: Colorado Springs, CO HUD Metro FMR Area
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 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$89,984
Housing Authorities Serving ZIP 80906
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). 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.