Location: Denver-Aurora-Centennial, CO | Metro: Denver-Aurora-Centennial, CO MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,650 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,690 |
| 4 Bedrooms | $3,010 |
| 5 Bedrooms | $3,492 |
| 6 Bedrooms | $3,911 |
| 7 Bedrooms | $4,224 |
| 8 Bedrooms | $4,435 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,730 | $268,693 | 0.64% | D |
| 2BR | $2,050 | $358,292 | 0.57% | F |
| 3BR | $2,690 | $510,591 | 0.53% | F |
| 4BR | $3,010 | $558,262 | 0.54% | F |
| 5BR | $3,492 | $599,589 | 0.58% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 80003 (Westminster, CO) for Section 8 purposes, follow this decision tree:
1) Does FMR $2070 (zip FY 2024) clear debt service on a $535,344 property?
If your debt service (including mortgage payments, taxes, insurance, and maintenance) on a $535,344 property is less than $2070 per month, then the answer is yes. The Fair Market Rent (FMR) of $2070 is sufficient to cover these costs. For example, if your total monthly debt service is $1800, you can comfortably manage the property under Section 8.
If your debt service exceeds $2070 per month, the answer is no. A property with higher debt service would not be profitable under the Section 8 program with the given FMR.
2) Is market rent $1,701 (ZORI) above, at, or below FMR?
The Zillow Observed Rental Index (ZORI) for ZIP 80003 is $1701, which is below the FMR of $2070. This means that the market rent is lower than what Section 8 will pay. Therefore, landlords who choose to participate in the Section 8 program in this area will receive a higher rental income compared to the market rate.
3) Are 29.9% renters + 30-day DOM enough demand?
In ZIP 80003, 29.9% of residents are renters. Additionally, the average days on market (DOM) for rentals is 30 days. These figures indicate a moderate level of demand. If the 30-day DOM suggests that properties are being rented quickly, there is enough demand to support a Section 8 investment. However, if the DOM is longer due to other factors, such as seasonal fluctuations or economic downturns, the demand might not be as strong.
Yes: If you can secure a debt service of less than $2070 and the market rent is consistently below the FMR, and the DOM indicates quick leasing, then buying in ZIP 80003 for Section 8 is a good decision. The combination of a manageable debt service and higher-than-market rental income makes this a solid investment.
No: If the debt service exceeds $2070 or if the DOM is significantly longer, making it difficult to lease properties quickly, then buying in this ZIP code for Section 8 is not advisable. The financial burden would be too high, and the demand might not justify the investment.
It Depends: If the debt service is close to $2070 and the DOM varies widely, the decision to invest in ZIP 80003 for Section 8 becomes less clear-cut. You must analyze further, considering the potential for rental income growth and the stability of demand in the area.
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.