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 analysis of the Section 8 cap-rate picture for ZIP code 80934 in Colorado reveals some limitations due to incomplete data. However, we can still draw meaningful conclusions based on the available figures.
The Fair Market Rent (FMR) for a two-bedroom property in ZIP 80934 for FY 2024 is set at an annual rate of $1730. This figure represents the government's benchmark for rental subsidies under the Section 8 program. To calculate the implied gross yield for a Section 8 property, we would typically divide the annual rent by the median home value. Unfortunately, the median home value for this ZIP code is currently not available, making it impossible to calculate the precise gross yield for a Section 8 property in this scenario.
In contrast, the market rent for a two-bedroom property is also listed as N/A, indicating that there is no readily available data to compare the Section 8 rent to the prevailing market rates. Without knowing the market rent, we cannot determine whether the Section 8 rent is above or below the market level, nor can we calculate the implied gross yield for market-rent properties.
The lack of specific data points such as median home value, renter density percentage, and days on market (DOM) makes it challenging to provide a definitive comparison between the Section 8 and market-rent scenarios. However, we can infer that the absence of these figures might suggest either a lack of recent transactions or limited availability of housing data in ZIP 80934.
To proceed with a more accurate analysis, investors should seek out additional local real estate reports or consult with local realtors to obtain missing figures such as the median home value and current market rents. These details are crucial for determining the true gross yield and assessing the viability of investing in this area through the Section 8 program versus the open market.
Given the incomplete data, the most realistic approach would be to rely on the specific $1730 annualized FMR for Section 8 properties until more comprehensive market data becomes available. The actual gross yield will depend on the median home value once that figure is known, but the current FMR provides a solid starting point for investment 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.