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 | $2,090 |
| 1 Bedroom | $2,190 |
| 2 Bedrooms | $2,590 |
| 3 Bedrooms | $3,400 |
| 4 Bedrooms | $3,800 |
| 5 Bedrooms | $4,408 |
| 6 Bedrooms | $4,937 |
| 7 Bedrooms | $5,332 |
| 8 Bedrooms | $5,599 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,190 | $205,244 | 1.07% | B |
| 2BR | $2,590 | $336,066 | 0.77% | D |
| 3BR | $3,400 | $500,361 | 0.68% | D |
| 4BR | $3,800 | $592,022 | 0.64% | D |
| 5BR | $4,408 | $679,244 | 0.65% | D |
U.S. Census Bureau data (2024)
Centennial’s 80015 zip code represents a stable, suburban environment characterized by master-planned communities and high homeownership rates. The area is known for its extensive trail systems and family-friendly atmosphere, offering a blend of residential quietude and commercial convenience. A key institutional anchor providing local economic stability is the Centennial Airport, which supports numerous aviation and aerospace businesses in the vicinity, contributing to a robust local employment base.
From a numerical standpoint, the housing data presents a specific pricing landscape for investors. The HUD FY2026 Fair Market Rent for a 2-bedroom unit is set at $2,470, while current market rents (Zillow ZORI) sit higher at $2,588, creating a negative gap of $118 per month if relying solely on voucher payments. Median home values in the area are substantial at $551,085, and inventory moves quickly with a median of 20 days on market. With a voucher cap of $2,470 against market reality of $2,588, strictly voucher-dependent tenants do not cash-flow here without a rent contribution.
Despite the rental gap, the tenant pool quality is exceptional. The area boasts a median household income of $124,702, significantly above national averages, and the renter share is a mere 17.8%, indicating a neighborhood dominated by owner-occupants. This demographic is bolstered by access to highly-rated schools within the Cherry Creek School District and convenient retail options, ensuring a steady demand from families seeking stability. Even with a low renter density, the high income levels suggest that any Section 8 tenants here are likely to be working families with a strong incentive to maintain the property.
The Section 8 verdict for 80015 leans heavily toward appreciation and stability rather than immediate cash flow. The $118 gap between market rent and the 2-bedroom FMR ($2,588 vs $2,470) means investors must be comfortable with a potential monthly shortfall or require a tenant contribution. However, the rapid 20-day turnover rate and high median home value of $551,085 signal a competitive asset class likely to grow in equity over time, making this a long-term hold play rather than a short-term income generator.
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.