Location: Colorado Springs, CO | Metro: Colorado Springs, CO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,130 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,570 |
| 5 Bedrooms | $2,981 |
| 6 Bedrooms | $3,339 |
| 7 Bedrooms | $3,606 |
| 8 Bedrooms | $3,786 |
The economics of Section 8 housing in ZIP code 80912, located in Colorado Springs County, Colorado, operate under specific financial guidelines that landlords need to understand. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1730. This SAFMR figure is unique to ZIP 80912, meaning it reflects the specific rental market conditions of this area.
To clarify, the SAFMR does not necessarily represent the local market rent because the latter is currently unavailable. However, the SAFMR serves as the benchmark for determining the maximum amount that a Section 8 voucher will cover for a two-bedroom unit in this ZIP code.
A landlord participating in the Section 8 program receives reimbursement based on the voucher holder's contribution plus any utility allowances. The tenant's portion typically amounts to 30% of their adjusted income, which they must pay directly to the landlord. Utility allowances vary but are generally capped at a certain amount per month, depending on the household size and the type of utilities included in the lease agreement.
Let's assume an average utility allowance of $200 for simplicity. If a tenant's portion is $500, then the total reimbursement to the landlord would be $700 ($500 tenant payment + $200 utility allowance). Therefore, the landlord can expect a reimbursement of up to $1730 for a two-bedroom unit, which includes both the tenant's direct payment and the utility allowance.
In ZIP 80912, landlords often find themselves either with a surplus or facing a gap between the SAFMR and the actual market rent. Since the local market rent is not specified, we cannot calculate an exact surplus or shortfall. However, if the market rent exceeds $1730, landlords will experience a shortfall, and vice versa if it is below.
To conclude, the typical reimbursement for a two-bedroom apartment under a Section 8 voucher in ZIP 80912 is $1730, including the tenant's payment and utility allowance. Landlords should compare this figure to their own rental rates to determine whether they will have a surplus or a shortfall. Given the lack of specific local market rent data, landlords must research current market conditions to make informed decisions about their participation in the Section 8 program.
Data Sources: FMR data from HUD (2027).
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.