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 | $2,590 |
| 1 Bedroom | $2,710 |
| 2 Bedrooms | $3,210 |
| 3 Bedrooms | $4,210 |
| 4 Bedrooms | $4,710 |
| 5 Bedrooms | $5,464 |
| 6 Bedrooms | $6,120 |
| 7 Bedrooms | $6,610 |
| 8 Bedrooms | $6,941 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,210 | $532,127 | 0.6% | D |
| 3BR | $4,210 | $756,592 | 0.56% | F |
| 4BR | $4,710 | $900,324 | 0.52% | F |
| 5BR | $5,464 | $1,071,773 | 0.51% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 80007, which covers Arvada, CO, and part of Jefferson County, are crucial for landlords and small-portfolio investors to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $3300. This SAFMR is specifically tailored for this ZIP code, reflecting the local rental market conditions.
Local market rent, as measured by ZORI (Zillow Observed Rent Index), also stands at $3300. This indicates that the SAFMR closely aligns with the actual rents being charged in the area, providing landlords with a stable income expectation when leasing to tenants with Section 8 vouchers.
A Section 8 voucher typically covers most of the rent, but not all. Tenants are required to pay a portion of their income towards rent, which is usually around 30% of their adjusted monthly income. If a tenant's income is $2000 per month, they would pay approximately $600 towards rent. The remainder of the rent, up to the SAFMR of $3300, is covered by the government. For a two-bedroom unit, the total reimbursement might be $2700 if the tenant's share is $600.
In addition to the base rent, there are utility allowances that can vary based on the size of the apartment and local energy costs. For a two-bedroom unit, the utility allowance is generally around $400. This amount is included in the total reimbursement package, meaning that landlords receive both the rent subsidy and the utility allowance.
To illustrate, if a tenant has an adjusted monthly income of $2000, their contribution to the rent would be $600. With the SAFMR at $3300 and the utility allowance at $400, the total reimbursement from the government would be $2700 plus the $400 utility allowance, equating to $3100. Therefore, landlords in ZIP 80007 would see a reimbursement gap of $200 per month for a two-bedroom unit, assuming the market rent is exactly at the SAFMR level.
This gap or surplus can fluctuate depending on the actual rent charged by the landlord and the tenant’s income. However, in ZIP 80007 where the SAFMR and market rent are aligned at $3300, landlords should expect a minor shortfall unless they adjust their rental rates or have tenants with higher incomes.
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.