Section 8 Fair Market Rent (FMR) for ZIP 81242 - 2027

Location: Chaffee County, CO | Metro: Chaffee County, CO

Investment Score for ZIP 81242

N/A

Monthly Rent (2BR)

$1,690

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,260
1 Bedroom	$1,290
2 Bedrooms	$1,690
3 Bedrooms	$2,270
4 Bedrooms	$2,620
5 Bedrooms	$3,039
6 Bedrooms	$3,404
7 Bedrooms	$3,676
8 Bedrooms	$3,860

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$2,270	$577,312	0.39%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

807

Median Household Income

$95,865

Housing Units

548

Renter Percentage

11.6%

Occupancy Rate

89.8%

Renter Occupied

The ZIP code 81242, located in the heart of Colorado Springs, Colorado, offers a unique blend of suburban charm and urban convenience. This area is characterized by its proximity to military bases, universities, and various recreational activities, making it a desirable location for both homeowners and renters.

The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,260, providing a benchmark for rental pricing.
The average market rent, according to Census ACS data, stands at $1,765, indicating a higher demand for rental properties than the FMR suggests.
The median home value in this ZIP code is $559,409, reflecting a relatively affluent neighborhood with strong property appreciation potential.
Renters make up 11.6% of the housing market, suggesting a significant portion of residents prefer ownership over renting.
The median income in the area is $95,865, which supports the high median home value and indicates a stable economic base.

The data points highlight a robust real estate market in ZIP 81242, with favorable conditions for both rental and ownership investments. The discrepancy between the FMR and market rent signals an opportunity for landlords to potentially command higher rents. Given the median home value and median income, there is a strong indication that property values are likely to remain stable or increase, making it an attractive location for small-portfolio investors looking to capitalize on long-term growth. However, the relatively low renter share suggests that rental properties might face competition from homeownership options, necessitating strategic management and maintenance to ensure occupancy rates.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.