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 | $2,020 |
| 1 Bedroom | $2,110 |
| 2 Bedrooms | $2,500 |
| 3 Bedrooms | $3,280 |
| 4 Bedrooms | $3,670 |
| 5 Bedrooms | $4,257 |
| 6 Bedrooms | $4,768 |
| 7 Bedrooms | $5,149 |
| 8 Bedrooms | $5,406 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,110 | $233,597 | 0.9% | C |
| 2BR | $2,500 | $387,382 | 0.65% | D |
| 3BR | $3,280 | $604,533 | 0.54% | F |
| 4BR | $3,670 | $714,550 | 0.51% | F |
| 5BR | $4,257 | $819,200 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 80005 is located in a high-end residential area of Denver, CO. This neighborhood is characterized by a relatively affluent population of 28,459 residents, where only 11.8% are renters. The median household income in this area stands at a robust $136,821, reflecting the economic status of the community. Median home values are also impressively high, sitting at $652,226, indicating a strong real estate market and a preference for homeownership among local residents.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 80005 for fiscal year 2024 is set at $2,470. This figure closely aligns with the market rent as measured by the Zillow Observed Rent Index (ZORI), which is $2,490. This suggests that the rental market is well-regulated and the FMR accurately reflects the actual rental prices, providing a stable environment for landlords and investors.
Given these conditions, ZIP 80005 would be suitable for a hands-off voucher operator due to the low percentage of renters and the strong alignment between FMR and market rent. However, for those interested in a hands-on approach, such as a value-add buyer, the opportunity may be limited by the already high median home value and the preference for homeownership. There is little room for significant rent increases without exceeding the market rate, which could lead to occupancy issues.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.