Section 8 Fair Market Rent (FMR) for ZIP 80006 - 2027
Location: Denver-Aurora-Centennial, CO | Metro: Denver-Aurora-Centennial, CO MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,730 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,810 |
| 4 Bedrooms | $3,140 |
| 5 Bedrooms | $3,642 |
| 6 Bedrooms | $4,079 |
| 7 Bedrooms | $4,405 |
| 8 Bedrooms | $4,625 |
To determine if a landlord should buy in ZIP 80006 (Unknown, CO) for Section 8 purposes, follow this decision tree:
- Does the Fair Market Rent (FMR) of $2180 cover debt service?
- Yes: Proceed to the next question.
- No: Do not invest in this area for Section 8 properties. The FMR does not sufficiently cover the cost of owning a property here.
- Is the market rent above, at, or below FMR?
- Above FMR: This indicates strong rental demand. However, you must ensure that the FMR of $2180 still covers your debt service costs. If it does, this area could be profitable for Section 8 investments.
- At FMR: The market rent matches the FMR. This means you can expect to break even on rental income versus debt service costs. Consider other factors such as location and property condition before making an investment decision.
- Below FMR: This suggests that the market rent is lower than the FMR, which could mean less competitive pressure. However, if the market rent is significantly lower, it may indicate low demand or poor economic conditions in the area. In this case, it depends on whether the FMR can cover your debt service costs.
- Are the percentage of renters and the days on market (DOM) sufficient to meet demand?
- N/A% renters + N/A-day DOM: Insufficient data to make a determination. Without knowing the percentage of renters and the DOM, it's impossible to gauge the level of demand accurately. Further investigation into local real estate trends and rental vacancy rates is necessary to assess the viability of Section 8 investments in this area.
Note: Due to missing specific data points such as the percentage of renters and market rent levels, some branches of the decision tree cannot provide a definitive answer. Ensure you have all necessary financials and local market data before proceeding with any investment.
Data Sources: FMR data from HUD (2027).
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.