Section 8 Fair Market Rent (FMR) for ZIP 80012 - 2027

Investment Score for ZIP 80012

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	$1,710
1 Bedroom	$1,790
2 Bedrooms	$2,120
3 Bedrooms	$2,780
4 Bedrooms	$3,110
5 Bedrooms	$3,608
6 Bedrooms	$4,041
7 Bedrooms	$4,364
8 Bedrooms	$4,582

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	$1,790	$160,486	1.12%	B
2BR	$2,120	$265,400	0.8%	D
3BR	$2,780	$426,907	0.65%	D
4BR	$3,110	$479,297	0.65%	D
5BR	$3,608	$502,737	0.72%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80012 (Aurora, CO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 80012 is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $2060, which represents 33.9% of the median household income of $73,000. This indicates that the rent for a two-bedroom unit is relatively affordable compared to the average income in the area. However, it is important to note that actual rents can vary significantly from these figures. In Aurora, CO, the actual rental rates might be higher due to the strong demand for housing. The FMR is designed to ensure that families do not spend more than 30% of their income on housing, but in reality, many renters might find themselves paying more than the FMR. For instance, if a tenant has a household income of $73,000, they would ideally pay no more than $1825 per month ($73,000 * 0.30 / 12) for a two-bedroom unit. Therefore, the FMR of $2060 could be a constraint for some voucher holders who might struggle to find units within their budget. #### Affordability & Renter Profile ZIP code 80012 has a population of 51,052, with 50.2% of residents being renters. This high percentage suggests a significant demand for rental properties in the area. The occupancy rate of 96.2% further supports the idea that the market is tight, with very few vacant units available. Given the median household income of $73,000, the majority of renters are likely middle-class individuals and families who work in various sectors of the local economy. The price-to-FMR ratio for a two-bedroom unit is 11.1x, meaning the median home value of $273,940 is significantly higher than the FMR. This large gap between home values and rental costs implies that homeownership is less accessible to renters, making the rental market even more critical. #### Investor Angle From an investor perspective, the key question is whether the ZIP code can generate positive cash flow at the FMR. To determine this, we need to consider the typical expenses associated with owning and renting out a property, such as mortgage payments, property taxes, insurance, maintenance, and utilities. Assuming a conservative estimate of expenses, let’s break down the potential cash flow for a two-bedroom unit: - **Rental Income**: $2060 per month - **Property Taxes**: Approximately 1.1% of the median home value ($273,940 * 0.011 = $3013 annually, or $251 monthly) - **Insurance**: Around $100 per month - **Maintenance and Utilities**: $100-$200 per month Total monthly expenses would be around $451-$551. Subtracting these from the rental income of $2060, the net cash flow would range from $1509 to $1609 per month. This suggests that investing in rental properties in ZIP code 80012 could be cash-flow positive at the FMR. However, the investment grade depends on factors like vacancy rates, competition, and the overall economic stability of the area. Given the tight market and high occupancy rate, the risk of prolonged vacancies is low, which is favorable for investors. Additionally, the high percentage of renters and the strong demand for housing make this ZIP code attractive for investment. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Given the high demand for two-bedroom units and the fact that the FMR for these units is $2060, investors should prioritize acquiring properties that fit this size category. These units are most likely to be rented out quickly and at the FMR, ensuring steady cash flow. 2. **Consider the Price-to-FMR Ratio**: With a price-to-FMR ratio of 11.1x, it is clear that the cost of purchasing a home far exceeds the rental income that can be generated. Investors should focus on rental properties rather than buying homes to flip or sell, as the rental market is more robust and aligned with the FMR. 3. **Understand Tenant Constraints**: While the FMR is set at $2060 for a two-bedroom unit, many tenants might have difficulty finding units within this budget. Investors who can offer competitive pricing slightly above the FMR (e.g., $2200-$2300) while maintaining quality standards may attract more tenants and secure better occupancy rates. #### Bottom Line For Section 8-focused investors, ZIP code 80012 presents a mixed picture. On one hand, the strong demand for rental properties and the high occupancy rate suggest a stable market. On the other hand, the high price-to-FMR ratio indicates that the cost of homeownership is not aligned with the rental market dynamics. **Recommendation**: **Hold**. Investors should maintain their current positions in rental properties in this ZIP code, particularly those that are two-bedroom units. The market is tight, and there is a significant demand for affordable rentals. However, new investments should be approached cautiously, focusing on properties that can be rented out at or slightly above the FMR to ensure positive cash flow and occupancy. This ZIP code is not recommended for speculative purchases or flipping homes, as the high home values relative to rental incomes make such strategies less viable. Instead, investors should concentrate on providing quality rental units that meet the needs of the local population.

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.