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 | $1,250 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,840 |
| 5 Bedrooms | $3,294 |
| 6 Bedrooms | $3,689 |
| 7 Bedrooms | $3,984 |
| 8 Bedrooms | $4,183 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,520 | $235,197 | 0.65% | D |
| 2BR | $1,790 | $289,660 | 0.62% | D |
| 3BR | $2,480 | $485,027 | 0.51% | F |
| 4BR | $2,840 | $625,755 | 0.45% | F |
| 5BR | $3,294 | $732,041 | 0.45% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 80919, located in Colorado Springs, CO, within El Paso County and the Colorado Springs, CO HUD Metro FMR Area, highlights a favorable environment for rental property investments. The HUD Fair Market Rent (FMR) for the area stands at $1910 for the fiscal year 2024, while the Zillow Observed Rent Index (ZORI) indicates an average market rent of $1,596. This comparison suggests that voucher tenants can indeed provide positive cash flow at the HUD FMR rate, as it exceeds the typical market rent by $314 per month.
To further analyze the investment potential, consider the median home value in the area, which is $589,897. Using the ZORI figure, the rent-to-price ratio can be calculated as approximately 0.27%, indicating that rental income is relatively low compared to home values. However, this ratio does not fully capture the benefits of Section 8 tenancy, given the guaranteed rent payment through the voucher program.
The median days on market (DOM) for properties in this area is 27 days, and the price-cut share is 0.2%. These figures suggest a strong demand for housing, with minimal need for price reductions to attract buyers. In the context of Section 8 investments, this implies that rental units will likely be occupied promptly without significant vacancy periods, enhancing the overall stability of the investment.
The strongest angle for investors in ZIP 80919 is the potential for positive cash flow, given the discrepancy between the HUD FMR and the actual market rents. While appreciation and stability are also factors, the guaranteed income stream and reduced risk of vacancies make cash flow the most compelling reason to invest in Section 8 properties here.
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.