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 | $1,020 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,240 | $217,692 | 0.57% | F |
| 2BR | $1,460 | $245,883 | 0.59% | F |
| 3BR | $2,020 | $381,164 | 0.53% | F |
| 4BR | $2,320 | $429,705 | 0.54% | F |
| 5BR | $2,691 | $458,400 | 0.59% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 housing in ZIP code 80917, located in Colorado Springs, CO, are significant and must be carefully considered. Tenant turnover is a notable concern, as the market rent stands at $1,287, which is notably lower than the Fair Market Rent (FMR) of $1,580 for fiscal year 2024. This discrepancy can lead to frequent changes in occupancy, increasing management costs and operational challenges. Vacancy exposure is another critical issue, with an average Days on Market (DOM) of 60 days indicating a longer period when properties may remain unoccupied, thereby reducing cash flow and profitability.
Deferred maintenance is also a substantial risk factor, especially considering the typical home value in the area is $398,940 and the median income is $72,991. These financial constraints can limit the ability of landlords to invest in necessary property improvements, potentially leading to higher repair costs and decreased property values over time. The financial burden of maintaining properties while receiving Section 8 rents, which are often below market rates, can exacerbate these issues.
However, these risks are tempered by the high proportion of renters in the area, with 41.4% of residents classified as renters. This high renter density typically correlates with increased demand for rental housing, including units that accept Section 8 vouchers. A larger pool of potential tenants can help mitigate the risks associated with vacancy and turnover, as there is a greater likelihood of finding and retaining qualified tenants who utilize vouchers.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.