Section 8 Fair Market Rent (FMR) for ZIP 80011 - 2027

Investment Score for ZIP 80011

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,620
1 Bedroom	$1,700
2 Bedrooms	$2,010
3 Bedrooms	$2,640
4 Bedrooms	$2,950
5 Bedrooms	$3,422
6 Bedrooms	$3,833
7 Bedrooms	$4,140
8 Bedrooms	$4,347

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,700	$146,385	1.16%	B
2BR	$2,010	$289,209	0.69%	D
3BR	$2,640	$402,334	0.66%	D
4BR	$2,950	$432,965	0.68%	D
5BR	$3,422	$459,438	0.74%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80011 (Aurora, CO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 80011 is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $1950 per month. However, the actual rental market price for a two-bedroom unit, based on Zillow’s median data, is significantly higher at $296,660. This means that the price-to-FMR ratio is 12.7 times, indicating that actual market rents are much higher than what is covered by the FMR. For voucher holders, this creates a significant constraint. The maximum rent they can pay for a two-bedroom unit under the voucher program is $1950, which is only about 31.6% of the median household income in the area ($74,022). This makes it challenging for voucher holders to find suitable housing, as landlords may be unwilling to accept vouchers due to the high disparity between FMR and market rates. #### Affordability & Renter Profile ZIP code 80011 has a population of 53,695, with 46.2% of residents being renters. The occupancy rate stands at 96.2%, suggesting that the rental market is quite tight. Given the high proportion of renters and the occupancy rate, there is likely a strong demand for rental properties, especially those that fall within the affordability range of the typical resident. The median household income of $74,022 indicates that the area is moderately affluent, but with nearly half of the population renting, affordability remains a critical issue. The fact that the FMR for a two-bedroom unit is only 31.6% of the median income suggests that many residents, even without vouchers, might struggle to afford market-rate rentals. This tight market dynamic implies that there is a significant need for affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 80011 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1950, which is well below the market rate of $296,660. This means that if an investor is looking to operate in the Section 8 market, they will need to ensure that their rental units are priced competitively within the FMR guidelines. To determine whether this ZIP code is cash-flow positive at FMR, we must consider the cost of acquiring and maintaining rental properties. Given the high median home value of $296,660, the initial capital investment would be substantial. Additionally, maintenance costs, property taxes, insurance, and other expenses would need to be managed effectively to achieve profitability. However, the tight rental market and high occupancy rate suggest that there is a strong demand for rental properties, which could potentially lead to higher occupancy rates and reduced vacancy costs. The investment grade would depend on the ability to manage these costs effectively and the willingness of landlords to accept vouchers despite the lower rent compared to market rates. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on developing or acquiring properties that can be rented out at or near the FMR levels. This would mean targeting units that are priced around $1950 for a two-bedroom apartment. Given the high market rate, there is a potential niche market for affordable housing that could be filled by such investments. 2. **Understand Local Demand**: With 46.2% of the population being renters and a high occupancy rate of 96.2%, understanding the local demand is crucial. Investors should conduct thorough market research to identify areas within the ZIP code where there is a higher concentration of renters who are likely to use Section 8 vouchers. This could involve analyzing census tracts or working closely with local housing authorities to understand the distribution of voucher holders. 3. **Consider Multi-Family Properties**: Given the high FMR for larger units (e.g., $2550 for three-bedroom units), multi-family properties could offer a better return on investment. These properties can accommodate families with larger households and still fall within the FMR guidelines. For example, a three-bedroom unit at $2550 would be more affordable for a family earning the median income of $74,022. #### Bottom Line For Section 8-focused investors, the ZIP code 80011 presents a mixed picture. While the tight rental market and high occupancy rate suggest strong demand, the significant gap between FMR and market rates poses a challenge. **Recommendation**: **Hold**. Investors should hold off on making large investments until they have a clear strategy to manage costs and attract voucher holders. Developing a deep understanding of the local rental market and identifying areas with a higher concentration of renters using Section 8 vouchers would be key to success in this ZIP code. Additionally, focusing on multi-family properties and ensuring that units are priced within the FMR guidelines would help mitigate some of the risks associated with operating in this market.

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.