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 | $1,480 |
| 1 Bedroom | $1,800 |
| 2 Bedrooms | $2,120 |
| 3 Bedrooms | $2,940 |
| 4 Bedrooms | $3,370 |
| 5 Bedrooms | $3,909 |
| 6 Bedrooms | $4,378 |
| 7 Bedrooms | $4,728 |
| 8 Bedrooms | $4,964 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,120 | $495,586 | 0.43% | F |
| 3BR | $2,940 | $528,135 | 0.56% | F |
| 4BR | $3,370 | $705,003 | 0.48% | F |
| 5BR | $3,909 | $821,318 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 80921, located in Colorado Springs, CO, and part of El Paso County, operate under specific guidelines that determine how much landlords can expect to be reimbursed. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $2320 per month for fiscal year 2024. This figure is crucial because it represents the maximum amount that the housing authority will pay towards a tenant's rent. However, the local market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1823, suggesting that the SAFMR exceeds the average market rent.
A landlord participating in the Section 8 program should understand that the reimbursement includes both the tenant's portion of the rent and utility allowances. The tenant typically pays 30% of their adjusted income toward rent, which is then supplemented by the housing authority to cover up to the SAFMR limit. Utility allowances are additional payments made to help cover the costs of electricity, gas, water, and sewerage. These allowances vary but are generally modest compared to the rent itself.
To illustrate, if a tenant's portion of the rent is $600 based on their income, the housing authority would pay the difference to ensure the total rent does not exceed $2320. If the actual rent charged is $1823, the housing authority would reimburse the landlord for the remaining $1223, making the total payment $1823. In this scenario, there would be no reimbursement gap since the local market rent is below the SAFMR. Instead, landlords receive a guaranteed rent payment that is higher than the prevailing market rates.
The SAFMR being set specifically for ZIP 80921 means that the rate is tailored to reflect the unique rental market conditions of this particular area, rather than applying uniformly across the entire county or metropolitan region. This specificity helps ensure that the subsidy accurately reflects the cost of living and rental prices in Colorado Springs.
In conclusion, for a two-bedroom apartment in ZIP 80921, landlords participating in the Section 8 program can expect a surplus when comparing the reimbursement amount ($2320) to the local market rent ($1823). This surplus is due to the SAFMR exceeding the ZORI, providing landlords with a stable and potentially above-market rental income. Landlords should be aware of the utility allowances and tenant contribution calculations to fully understand their monthly income from Section 8 tenants.
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.