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 | $990 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,210 | $237,026 | 0.51% | F |
| 2BR | $1,420 | $294,760 | 0.48% | F |
| 3BR | $1,970 | $356,280 | 0.55% | F |
| 4BR | $2,250 | $403,916 | 0.56% | F |
| 5BR | $2,610 | $434,464 | 0.6% | D |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 80909 under the Section 8 program are significant. Tenant turnover is a critical issue, with the market rent at $1,238 falling below the Fair Market Rent (FMR) of $1,460 for fiscal year 2024. This gap can lead to higher turnover rates as tenants seek more affordable housing options, resulting in frequent vacancies and increased administrative costs.
Vacancy exposure is another concern, with an average Days on Market (DOM) of 25 days. This indicates that properties may remain vacant longer than desirable, leading to lost rental income. The median home value in ZIP 80909 is $367,584, which is relatively high compared to the median household income of $64,035. This disparity can create a situation where landlords must contend with deferred maintenance issues, as tenants may not have the financial means to keep up with the upkeep of higher-value homes.
However, these risks must be weighed against the high concentration of renters in the area. With 46.0% of residents being renters, there is likely to be a strong demand for rental properties, including those that accept Section 8 vouchers. High renter density can stabilize occupancy rates and mitigate some of the financial risks associated with vacancy periods.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 80909 is moderate.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.