Section 8 Fair Market Rent (FMR) for ZIP 81241 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if a landlord should buy in ZIP code 81241 (Ohio City, CO) for Section 8 purposes, follow these steps:

Step 1: Does the Fair Market Rent (FMR) of $1,330 for the metro area in fiscal year 2026 cover the debt service on a property priced at $405,178?

• No: If the FMR does not cover the debt service, buying in this area is not advisable. The average monthly payment required to cover the mortgage and other expenses would exceed the $1,330 limit set by the housing authority.
• Yes: Proceed to the next step.

Step 2: Is the market rent above, at, or below the FMR of $1,330?

• N/A: There is insufficient data to make an accurate comparison between market rent and FMR. This makes it difficult to assess the potential profitability of a Section 8 investment in this area.
• Above: If the market rent exceeds the FMR, landlords will likely need to accept lower rental income from Section 8 tenants compared to what they could earn from market-rate tenants. This could be a deterrent unless the landlord specifically seeks Section 8 properties.
• At or Below: If the market rent is at or below the FMR, then Section 8 can be a viable option as it ensures a stable income stream without the risk of renting below market rates.

Step 3: Are 2.3% of residents renters and the days on market (DOM) sufficient to meet demand?

• It Depends: With only 2.3% of residents being renters and days on market data being unavailable, it's challenging to gauge the demand for rental properties. If the landlord can secure a steady stream of Section 8 tenants, despite the low percentage of renters, it might still be a good investment. However, the lack of DOM data means there is uncertainty about how quickly units might be filled.

In summary, the viability of purchasing a property in ZIP 81241 for Section 8 tenants hinges on the ability of the FMR to cover debt service, the relationship between market rent and FMR, and the strength of rental demand. Given the current data, landlords must carefully consider the financial implications and the local rental market dynamics before making an investment decision.

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.