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 | $2,160 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,460 |
| 5 Bedrooms | $4,014 |
| 6 Bedrooms | $4,496 |
| 7 Bedrooms | $4,856 |
| 8 Bedrooms | $5,099 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,160 | $409,651 | 0.53% | F |
| 3BR | $3,030 | $473,503 | 0.64% | D |
| 4BR | $3,460 | $653,796 | 0.53% | F |
| 5BR | $4,014 | $707,362 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 80924 is situated in Colorado Springs, CO, representing a middle-class neighborhood with a total population of 19,619 residents. Approximately 34.3% of these residents are renters, indicating a significant demand for rental properties. The median household income in this area is strong at $139,447, which suggests a generally stable and financially capable community. The median home value stands at $655,990, reflecting the overall property values and the standard of living in the region.
From an investment perspective, the rent economics in ZIP 80924 are noteworthy. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $2,600, which is notably higher than the actual market rent, measured by Zillow's Observed Rental Index (ZORI), at $1,765. This discrepancy between the FMR and the market rent indicates a potential opportunity for landlords and small-portfolio investors who can leverage the higher FMR rates through Section 8 vouchers.
Given the characteristics of ZIP 80924, it would be well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR compared to market rent provides a reliable source of income with minimal tenant turnover risk, as Section 8 vouchers ensure steady payments. Meanwhile, hands-on value-add buyers could benefit from improving properties to command closer to the FMR, thereby increasing their cash flow and potentially their equity over time. The relatively high median income and median home value also support the notion that there is a solid foundation for either investment strategy in this neighborhood.
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.