Location: Colorado Springs, CO | Metro: Colorado Springs, CO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,130 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,570 |
| 5 Bedrooms | $2,981 |
| 6 Bedrooms | $3,339 |
| 7 Bedrooms | $3,606 |
| 8 Bedrooms | $3,786 |
The economics of Section 8 housing in ZIP code 80933, located in Colorado Springs County, Colorado, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1730 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting local rental conditions more accurately than a broader metro or county-level figure.
A landlord participating in the Section 8 program will receive a subsidy based on the difference between the SAFMR and the tenant's portion of the rent. The tenant is required to pay 30% of their adjusted income towards rent. If the tenant’s adjusted income is $1500 per month, for example, they would pay $450 toward rent ($1500 x 0.3).
The voucher payment covers the remainder of the rent up to the SAFMR. In the case of a $1730 SAFMR, the landlord would receive $1280 from the voucher program ($1730 - $450). Additionally, the voucher includes an allowance for utilities, which can vary but typically ranges around $300 to $400 per month for a two-bedroom unit. This brings the total monthly reimbursement closer to $1630 to $1780.
To illustrate, if the SAFMR is $1730 and the tenant pays $450, the landlord receives $1280 from the voucher plus the utility allowance. Thus, the landlord's total monthly income from the voucher would be approximately $1630 to $1780, depending on the exact utility allowance.
The reimbursement gap or surplus is the difference between the local market rent and the SAFMR. Since the local market rent for ZIP 80933 is not available, it's challenging to provide a precise gap or surplus figure. However, if the local market rent were higher than the SAFMR, landlords would face a gap, meaning they might need to cover the difference themselves. Conversely, if the market rent is lower, landlords would benefit from a surplus, receiving more than the typical market rate.
Landlords should be aware that the actual reimbursement amount can vary based on the tenant's income and the specific utility allowance for their property. It is important to verify these details with the local housing authority to ensure accurate financial planning.
Data Sources: FMR data from HUD (2027).
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.