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 investment risk assessment for ZIP 80937 in Unknown, CO, reveals several critical factors that could impact a landlord's decision to participate in the Section 8 program. Firstly, tenant turnover poses a significant challenge due to the disparity between the market rent and the Fair Market Rent (FMR) of $1730 set for FY 2024. While the exact market rent is not available, it is crucial to note that if it exceeds the FMR, landlords may face frequent turnover as tenants struggle to afford the higher costs outside the voucher subsidy.
Vacancy exposure is another concern, particularly when considering the average days on market (DOM) which is currently unknown. In real estate markets, a higher DOM indicates greater difficulty in leasing properties, leading to potential financial losses for landlords. The lack of specific data on DOM for ZIP 80937 makes it challenging to predict how quickly a property can be rented out, especially under Section 8.
Deferred maintenance is also a risk factor, given the absence of data on the typical home value and median income in the area. Without these figures, it is difficult to assess the ability of residents to maintain homes adequately, which can lead to higher repair and maintenance costs for landlords. This uncertainty can be detrimental to the overall financial health of an investment property.
However, these risks must be weighed against the high concentration of renters in the area. Although the exact percentage of renter share is not available, high renter density generally correlates with higher demand for rental properties, including those utilizing Section 8 vouchers. This demand can stabilize occupancy rates and reduce the likelihood of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.