Location: Crowley County, CO | Metro: Crowley County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 81033 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,300, while the Census ACS data indicates that the current market rent stands at $933. This represents a difference of $367, or approximately 28%, in favor of the FMR.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors should recognize this as an opportunity to increase their yields. Voucher tenants provide a guaranteed source of rental income that is higher than what the open market currently offers. For instance, accepting a Section 8 tenant at the FMR rate of $1,300 ensures a steady stream of income above the prevailing market rate, thereby enhancing the profitability of the investment.
The ZIP code 81033 has a rental population of 26.3%. Despite the lack of data on the median home value, the median income in the area is $41,250. These figures suggest that there is a substantial number of residents who rely on rental housing and may have limited financial resources. Consequently, the demand for affordable housing options is likely high, making the acceptance of Section 8 vouchers a strategic move for landlords seeking to maximize returns.
However, it is important to consider the implications of renting below the FMR. While the FMR is designed to ensure that voucher holders can access a range of housing options, landlords may find themselves facing the challenge of attracting tenants willing to pay the higher FMR rate. In such a scenario, the cost of housing voucher tenants below the open-market rates could mean leaving potential profit on the table if the market were to adjust upwards in the near future.
To summarize, the gap between the FMR and the market rent in ZIP 81033 presents a clear yield advantage for landlords who accept Section 8 tenants. The higher guaranteed income from vouchers, combined with the local context of a modest median income and a notable percentage of renters, points to a favorable environment for this strategy. However, landlords must also be prepared for the possibility of market rents rising to meet or exceed the FMR, which could impact long-term investment decisions.
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.