Location: Lincoln County, CO | Metro: Cheyenne County, CO
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
U.S. Census Bureau data (2024)
The Section 8 housing program in ZIP code 81045 operates under specific economic guidelines that affect both tenants and landlords. For a two-bedroom apartment in this ZIP code, the SAFMR (Small Area Fair Market Rent) for fiscal year 2026 is set at $1,060. This figure represents the maximum amount that the Housing Choice Voucher Program will pay on behalf of a tenant for rent in this area.
In contrast, the local market rent for a similar two-bedroom unit is reported to be $850 based on recent Census ACS data. This lower figure indicates the average rent charged by landlords without the involvement of Section 8 vouchers.
Landlords participating in the Section 8 program should understand how the reimbursement works. The total reimbursement received includes the tenant's portion of the rent plus any utility allowances. Typically, the tenant contributes approximately 30% of their income towards rent. If we assume an average household income eligible for Section 8 benefits, this would mean the tenant might pay around $275 towards rent, leaving the remainder of the SAFMR to be covered by the voucher.
This means the voucher would cover the difference between the tenant's contribution and the SAFMR. In the case of ZIP 81045, the voucher would pay up to $785 directly to the landlord, which is calculated by subtracting the tenant's average contribution ($275) from the SAFMR ($1,060).
Utility allowances vary but generally add a few hundred dollars to the reimbursement. Assuming a utility allowance of $200, the total reimbursement a landlord could receive for a two-bedroom unit would be around $985.
Given that the local market rent is $850, this creates a surplus for landlords who participate in the Section 8 program in ZIP 81045. The typical reimbursement gap or surplus for a two-bedroom apartment is therefore $135, meaning landlords can expect to receive $135 more per month than the average market rent when accepting a Section 8 voucher.
This economic framework ensures that landlords are compensated fairly while also providing affordable housing options to low-income families. It's important for landlords to keep these numbers in mind when deciding whether to participate in the Section 8 program and to manage expectations regarding rental income.
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.