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 | $1,040 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,280 | $144,046 | 0.89% | C |
| 2BR | $1,500 | $246,706 | 0.61% | D |
| 3BR | $2,080 | $319,991 | 0.65% | D |
| 4BR | $2,380 | $354,475 | 0.67% | D |
| 5BR | $2,761 | $376,818 | 0.73% | D |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 80910, located in Colorado Springs, CO, presents a unique opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the Zillow Observed Rent Index (ZORI). The FMR for the area is set at $1,600 for fiscal year 2024, while the ZORI stands at $1,455. This indicates that the FMR is $145 higher than the market rent, representing a 10% premium.
The gap between these two figures means that voucher tenants can provide a yield advantage for property owners. With the FMR exceeding the market rent, landlords who accept Section 8 vouchers will receive a higher rental payment compared to what they might charge an open-market tenant. This makes it particularly attractive in a market where 52.8% of residents are already renters, and the median income is $61,969, which may not support higher rents outside of the voucher system.
In the broader context of Colorado Springs, where the median home value is $319,278, the Section 8 program helps ensure that lower-income families can afford decent housing. Landlords benefit from the stability and reliability of receiving government-backed rent payments, which are typically consistent and less likely to be delayed compared to open-market tenants.
However, accepting Section 8 tenants also comes with certain responsibilities and potential costs. Landlords must adhere to housing quality standards and undergo regular inspections. Additionally, the process of obtaining and renewing leases with voucher holders can be more bureaucratic and time-consuming than traditional leasing processes. Despite these considerations, the financial incentive of receiving $145 more per month, or a 10% increase over market rates, can outweigh the administrative burdens for many landlords.
To summarize, the Section 8 program in ZIP 80910 offers a yield play for landlords willing to navigate the requirements of the voucher system. The FMR of $1,600 is significantly above the market rent of $1,455, providing a clear financial benefit in an area where the majority of residents are already renters and the median income is relatively low.
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.