Section 8 Fair Market Rent (FMR) for ZIP 81002 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 81002 in Pueblo, CO presents several key considerations for landlords and small-portfolio investors interested in Section 8 properties. Let's address common concerns with available data.

• Will FMR $1160 (zip FY 2024) cover the mortgage on a home? The Fair Market Rent (FMR) for ZIP 81002 is set at $1160 for FY 2024. However, without specific data on average mortgage costs in the area, it's challenging to definitively state whether this will cover a typical mortgage payment. It's essential to consult local real estate agents or financial advisors for precise mortgage estimates to compare against the FMR.
• Is there enough renter demand at 81002? According to recent data, Pueblo's rental market shows moderate demand. While exact occupancy rates for ZIP 81002 aren't provided, the broader Pueblo market indicates that there is a steady need for affordable housing. Investors should monitor local real estate trends and consult with local agents for a more granular analysis of demand in this specific ZIP code.
• Will vouchers keep pace with market rents? The FMR of $1160 is designed to reflect the 40th percentile of market rents, meaning that approximately 40% of rental units in the area are priced below this amount. This suggests that vouchers should generally cover a significant portion of the market, but individual cases may vary. Investors should be aware of any local regulations or adjustments that might affect voucher amounts and their ability to cover market rents.

In conclusion, while the FMR provides a benchmark for rental income, it's crucial to gather additional local data to assess mortgage coverage and tenant demand accurately. Vouchers are intended to support affordability, but market fluctuations could impact their effectiveness in covering rent. Always consult with local experts for the most accurate and up-to-date information.

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.