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 | $1,590 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $3,160 |
| 4 Bedrooms | $3,620 |
| 5 Bedrooms | $4,199 |
| 6 Bedrooms | $4,703 |
| 7 Bedrooms | $5,079 |
| 8 Bedrooms | $5,333 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,160 | $407,712 | 0.78% | D |
| 4BR | $3,620 | $445,982 | 0.81% | C |
| 5BR | $4,199 | $497,876 | 0.84% | C |
U.S. Census Bureau data (2024)
ZIP code 80925, located within the Colorado Springs, CO HUD Metro FMR Area, has an FMR of $2440 for fiscal year 2024. This figure closely aligns with the market rent of $2,442, indicating that rental prices are in line with federal guidelines. The median home value in 80925 is $447,609, which is representative of the broader metro area's housing costs. With a 15.3% renter share, it suggests a moderate level of renters compared to homeowners.
To determine if 80925 is a value pocket, a mid-tier neighborhood, or a premium sub-market, we must consider the relationship between its FMR, market rent, and home values. Given that the FMR and market rent are nearly identical, this implies that the rental market in 80925 is stable and reflective of the average within the metro. The home value also mirrors the typical range seen across the Colorado Springs, CO HUD Metro FMR Area, further supporting the notion that 80925 is a mid-tier neighborhood.
The 15.3% renter share does not indicate a significant divergence from the norm, but when combined with the slightly lower home values relative to some areas within the metro, it suggests that 80925 could be considered a value pocket for Section 8 tenants. This is because higher renter shares with below-average home values can signal a favorable environment for those seeking affordable housing options under the Section 8 program.
In summary, ZIP 80925 offers a balanced rental and housing market within the Colorado Springs, CO HUD Metro FMR Area. It presents itself as a mid-tier neighborhood with slight characteristics of a value pocket, particularly appealing to Section 8 tenants due to its affordable home values and moderate renter population.
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.