Advanced Search
Index: Community Development / Subcategory: Housing

Affordable Rental Costs

Date Updated: 10/31/2011

Chart Directory:

Affordable rental housing is defined as housing which costs no more than 30% of a household's gross monthly income for rent and utilities.

According to the 2005-2009 American Community Survey 5-year Estimates, 33% of households in Larimer County (37,395) are renters. In Larimer County, the Fair Market Rent (FMR) for a 2-bedroom apartment was $832 in 2010. For a household to afford the FMR for a 2-bedroom apartment, without paying in excess of 30% of income for housing, requires a minimum household income of $2,773 per month. Assuming a year round 40-hour work week, this level of income translates into an hourly wage of $16.00.

An estimated 2,500 individuals in Larimer County received Supplemental Security Income (SSI) benefits according to the 2005-2009 American Community Survey 5-year Estimates. SSI is designed to help aged, blind, and disabled people with little to no income meet their basic living expenses. In 2010, monthly benefits paid to single individuals totaled $674 per month. At this income level, rent of $202 per month is considered affordable. However, the FMR for a one-bedroom apartment in the Fort Collins-Loveland area in 2010 was $686 per month.

What this chart shows: Average Household Rent and Vacancy Rates in the Fort Collins/Loveland MSA, 2001 to 2010*

Average Household Rent and Vacancy Rates in the Fort Collins/Loveland MSA, 2001 to 2010*

*The above chart and the corresponding table display data based on multi-unit (duplexes, apartment buildings, etc.) rental housing only based on 1st Quarter data. The rental costs do not include utilities paid by the renter.

Data Source: Colorado Division of Housing

See data table

What the above data tell us:

 Vacancy rates in Larimer County increased almost 520% between the first quarter of 2001 and the first quarter of 2003, when they peaked at 16.1%. During this time, many residents were purchasing homes due to the availability of easy credit. Since 2003, vacancy rates have been declining, reaching a low of 4.4% in the first quarter of 2009.

At the height of the foreclosure problem in 2009, average rent reached a 10-year high of $861, a 13.3% increase over 2008. As would be expected, vacancy rates dropped as homeowners were losing their homes and needed a place to live.

What this chart shows: Average Wages for Select Occupations vs. Household Rent in the Fort Collins/Loveland MSA, 2010

Job Title

Average Income (Hourly)

Average Income (Annual)

Maximum Monthly Rent Affordable for this Income

Monthly Rent by Number of Bedrooms*

Efficiency

1 BR

2 BR

3 BR

4 BR

$572

$686

$832

$1,211

$1,412

Monthly Amount of Cost Burden
(Rent Amount in Excess of 30%
of Gross Annual Income)
Fast Food Worker $8.81 $18,317 $458

$114

$228

$374

$753

$954
Security Guard $10.61 $22,079 $552

$20

$134

$280

$659

$860

Retail Salesperson

 $11.40 $23,718 $577

N/A

$93

$239

$618

$819
Waiter/ Waitress $12.35 $25,697 $607

N/A

$44

$190

$569

$770
Preschool Teacher $13.15 $27,353 $710

N/A

N/A

$148

$527

$728
Secretary $15.26 $31,743 $778

N/A

N/A

$38

$417

$618
Medical Assistant $15.41 $32,049 $823

N/A

N/A

$31

$410

$611
Customer Service Rep $15.72 $32,692 $791

N/A

N/A

$15

$394

$595
Construction Worker $20.09 $41,785 $1,045

N/A

N/A

N/A

$166

$367
Elementary School Teacher $22.86 $47,542 $1,181

N/A

N/A

N/A

$22

$223

*Rents include single-family residences as well as apartments and other multi-family units. In addition, the rents listed above include the cost of all utilities except telephone.

Data Sources:

What the above data tell us:

 According to the Colorado Department of Labor and Employment, the average weekly wage in 2010 for all Larimer County employees was $785 or $40,820 per year. At this salary, an individual in Larimer County could afford to pay up to $1,021 per month for rent and utilities. The average weekly wage would not be sufficient to cover the average monthly rent for a 3-bedroom unit, including utilities, of $1,211.

Based on the average rental amounts shown above, Larimer County renters would need to earn the following minimum hourly wage (based on a 40-hour work week) to qualify for affordable housing:

Size of Rental

Minimum Hourly Wage
Efficiency

$11.00
1-bedroom

$13.19
2-bedroom

$16.00
3-bedroom

$23.29
4-bedroom

$27.16

What this chart shows: Percentage of Households Spending 30% and More of Gross Annual Household Income Toward Rent by Income Range in Larimer County, 2005-2009 5-year Estimates

Percentage of Households Spending 30% and More of Gross Annual Household Income Toward Rent by Income Range in Larimer County, 2005-2009 5-year Estimates

Data Source: American Community Survey

See data table

What the above data tell us:

 Households earning less than $20,000 per year were much more likely to pay more than 30% of their household income in rent than those earning $20,000 or more. It appears the need for more affordable housing is an ongoing problem for residents of Larimer County.

According to the 2005-2009 American Community Survey 5-year Estimates, there were an estimated 20,000 Larimer County residents with incomes less than $50,000 who paid more than 30% of their income for rent.

In June 2011, the Colorado Department of Local Affairs, Division of Housing, released a report on rent burdened households in Colorado. According to that report, there are 21,981 affordable rental units in Larimer County for households earning $25,000 or less per year. However, there are more than twice as many households in Larimer County (45,741) at that income level.

What this chart shows: Percentage of Households Paying 30% and More of Gross Annual Household Income Toward Rent in the United States, Colorado, Larimer County & Cities and Towns, Census 2000 vs. 2005-2009 5-year Estimates

Percentage of Households Paying 30% and More of Gross Annual Household Income Toward Rent in the United States, Colorado, Larimer County & Cities and Towns, Census 2000 vs. 2005-2009 5-year Estimates

Data Source: United States Census Bureau

See data table

What the above data tell us:

 Whether it's the United States, Colorado, Larimer County or its cities and towns, nearly all saw a higher percentage of its residents paying in excess of 30% of household income for housing at the end of the decade (2005-2009 average) compared to the 2000 Census.

There was a 25.4% increase between 2000 and the 5-year average (2005-2009) in the percentage of households paying in excess of 30% of their income for housing. All of the Larimer County communites shown above saw higher percentage increases than the national average. Estes Park (85.9% increase) and Laporte (63.8% increase) saw the greatest increases compared to an 8.5% decrease for Wellington. NOTE: Timnath was not included in the above chart because of an extremely small sample size.

The average median family income (MFI) between 2005 and 2009 was $71,240 for a family of four. That means a family of four with an MFI of $21,372 or less would be considered extremely low income (30% of MFI) and a family of four earning between $21,373 and $35,620 would be considered very low income (50% of MFI). Finally, a family of four with income between $35,621 and $56,992 would be considered low income (80% of MFI). See the Median Family Income page on COMPASS for more information.

What this chart shows: Percentage of Households by Percentage of Gross Annual Household Income Paid toward Rent in Larimer County, 2000 Census vs. 2005-2009 ACS 5-year Estimates

Percentage of Households by Percentage of Gross Annual Household Income Paid toward Rent in Larimer County, 2000 Census vs. 2005-2009 ACS 5-year Estimates

Data Source: United States Census Bureau

See data table

What the above data tell us:

 Larimer County households paying in excess of 50% of their household income for housing increased from 20.5% in 2000 to 31.7% for the 2005-2009 5-year estimate. There was virtually no change in the percentage of households paying between 30% and 34% of their income for housing.

Additional Information:

Related Information on COMPASS-

Other Resources -

Data Tables:

Average Rent and Vacancy Rates - Fort Collins/Loveland MSA

Rent

Vacancy Rate

2001

$727

2.6%

2002

$753

7.0%

2003

$743

16.1%

2004

$726

13.4%

2005

$740

12.7%

2006

$749

8.8%

2007

$758

7.9%

2008

$760

5.2%

2009

$861

4.4%

2010

$838

4.9%

See chart

Households Paying 30% and More of Income toward Rent by Income Range - Larimer County, 2005-2009 5-year Estimates

Income Range

Less Than $10,000

$10,000 to $19,999

$20,000 to $34,999

$35,000 to $49,999

$50,000 to $74,999

$75,000 to $99,999

$100,000 and More

Households in Income Range

82.9%

86.4%

69.5%

33.1%

12.5%

1.7%

0.4%

See chart

Percentage of Households Paying 30% and More Toward Rent, 2005-2009 5-year Estimates

2000 Census

30-34%

35-39%

40-49%

50% or more

TOTAL %

United States

7.3%

5.1%

6.7%

17.6%

36.8%

Colorado

8.3%

5.7%

7.2%

17.4%

38.7%

Larimer County

8.1%

5.6%

7.8%

20.5%

42.0%

Berthoud

9.5%

7.2%

8.8%

9.0%

34.5%

Estes Park

11.1%

4.9%

3.8%

10.3%

30.2%

Fort Collins

7.8%

5.8%

8.5%

24.7%

46.8%

Laporte CDP

8.8%

2.0%

10.7%

12.7%

34.2%

Loveland

9.9%

5.6%

6.9%

14.3%

36.8%

Wellington

5.3%

5.3%

5.3%

8.7%

26.0%

2005-2009 ACS

30-34%

35-39%

40-49%

50% or more

TOTAL %

United States

8.4%

6.1%

8.3%

23.4%

46.2%

Colorado

8.6%

6.3%

8.6%

23.9%

47.5%

Larimer County

8.0%

6.5%

8.4%

31.7%

54.5%

Berthoud

7.2%

3.7%

6.0%

33.2%

50.1%

Estes Park

4.2%

13.5%

12.7%

25.7%

56.1%

Fort Collins

8.1%

6.6%

7.6%

37.4%

59.8%

Laporte CDP

13.8%

4.7%

18.0%

19.5%

56.0%

Loveland

8.8%

6.4%

8.5%

22.9%

46.7%

Wellington

6.3%

1.6%

5.0%

10.9%

23.8%

See chart