Location: Colorado Springs, CO | Metro: Colorado Springs, CO HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,460 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,090 |
| 3 Bedrooms | $2,900 |
| 4 Bedrooms | $3,320 |
| 5 Bedrooms | $3,851 |
| 6 Bedrooms | $4,313 |
| 7 Bedrooms | $4,658 |
| 8 Bedrooms | $4,891 |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 properties in ZIP code 80939 presents several potential pitfalls that landlords and small-portfolio investors should be aware of. Firstly, tenant turnover can pose a significant challenge due to the disparity between the market rent and the Fair Market Rent (FMR) of $1730 for FY 2024. This gap suggests that landlords might struggle to find tenants willing to pay the market rate, leading to higher turnover rates and associated costs.
Vacancy exposure is another critical concern. The lack of data on Days on Market (DOM) indicates an unpredictable housing market, which can lead to extended periods of vacancy. When properties remain vacant for longer durations, it can significantly impact cash flow and profitability, especially for those relying on rental income.
Deferred maintenance is also a risk factor. Without specific data on the typical home value and median income in ZIP 80939, it's difficult to assess the financial health of property owners and their ability to maintain homes adequately. Poorly maintained properties can attract fewer tenants and lead to increased repair costs, which are not always covered by the Section 8 program.
However, these risks must be weighed against the unique advantage of the area: a 0.0% renter share. Although this figure seems unusually low, it typically points to a high concentration of homeowners. In reality, a high renter density usually correlates with greater demand for housing vouchers, which can provide a steady stream of tenants and reduce vacancy concerns. Given the absence of specific data, it's challenging to fully evaluate this aspect, but the implication is that there may be less competition for voucher holders, potentially stabilizing the tenant pool.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.