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 | $1,140 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,280 | $414,286 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 80928, with a median income of $122,679, positions households to comfortably afford the market rate rent of $2,618. However, this rate is significantly higher than the Fair Market Rent (FMR) payment standard set at $1,620 for the fiscal year 2024.
The disparity between the market rate and the FMR highlights a substantial affordability gap for those relying on vouchers. This means that voucher recipients might struggle to find suitable housing within their budget constraints, leading to increased competition among landlords who accept vouchers.
With only 14.1% of the 798 residents being renters, the pool of potential tenants is relatively small. Landlords must weigh the benefits of accepting vouchers against the higher rents they could potentially charge to cash-paying tenants.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: while accepting vouchers can provide a steady stream of rental income, it will likely be lower than market rates. Cash-paying tenants offer higher immediate revenue but in a smaller rental market, securing these tenants may require competitive pricing or superior property conditions.
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.