Section 8 Fair Market Rent (FMR) for ZIP 80017 - 2027

Investment Score for ZIP 80017

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	$1,680
1 Bedroom	$1,760
2 Bedrooms	$2,080
3 Bedrooms	$2,730
4 Bedrooms	$3,050
5 Bedrooms	$3,538
6 Bedrooms	$3,963
7 Bedrooms	$4,280
8 Bedrooms	$4,494

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,760	$173,520	1.01%	B
2BR	$2,080	$290,950	0.71%	D
3BR	$2,730	$425,027	0.64%	D
4BR	$3,050	$473,529	0.64%	D
5BR	$3,538	$510,179	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80017 (Aurora, CO) #### Section 8 Voucher Dynamics In ZIP code 80017, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1960 per month for 2026. This represents 29.2% of the median household income of $80,524. However, the actual rent for a two-bedroom unit in this area is significantly higher, with Zillow reporting a median price of $296,825, which translates to approximately $2473 per month based on a standard mortgage calculation (assuming a 4.5% interest rate and a 30-year term). The price-to-FMR ratio is 12.6x, indicating that actual rents are substantially above the FMR. This creates a significant constraint for voucher holders. The FMR is designed to ensure that housing costs do not exceed 30% of a household’s income, but the actual rents in Aurora, CO, far exceed this benchmark. For instance, a voucher holder would only be able to afford a two-bedroom apartment if it were priced at $1960 per month, whereas the average market rent is $2473. This discrepancy means that many voucher holders may struggle to find suitable housing within their budget. #### Affordability & Renter Profile The renter population in ZIP 80017 is substantial, comprising 41.0% of the total population. With a high occupancy rate of 94.9%, the rental market appears to be relatively tight. This suggests that there is strong demand for rental properties, but the supply might not be meeting the needs of all renters, especially those relying on Section 8 vouchers. Given the median household income of $80,524, the majority of renters are likely middle-class families who can afford market-rate rents. However, a portion of the renters may be low-income households who rely on government assistance like Section 8 vouchers. The affordability gap is evident when comparing the FMR to the actual market rents, indicating that the market is not particularly affordable for low-income families. #### Investor Angle From an investor perspective, the ZIP code 80017 presents a mixed picture. While the rental market is tight and has a high occupancy rate, the actual rents are much higher than the FMR. This means that landlords who want to attract Section 8 voucher holders must price their units below the market rate, which could reduce potential cash flow. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning a rental property. Assuming a two-bedroom unit costs around $296,825, and using a conservative estimate of 1% of the purchase price for annual maintenance ($2968), plus property taxes (approximately 1.2% of the home value, or $3562 annually), insurance (around $1000 annually), and utilities (varies but let's assume $150 monthly), the total monthly expenses would be: - Monthly mortgage payment: $2473 - Annual maintenance: $2968 / 12 = $247 - Property taxes: $3562 / 12 = $297 - Insurance: $1000 / 12 = $83 - Utilities: $150 Total monthly expenses: $2473 + $247 + $297 + $83 + $150 = $3249 At the FMR of $1960, the landlord would incur a loss of $1289 per month, making it financially challenging to operate at FMR levels. Therefore, the ZIP code is not cash-flow positive at FMR for most landlords. #### Investment Grade Considering the high market rents and the tightness of the rental market, the investment grade for ZIP 80017 is moderate to high. The strong demand for rental properties and the high occupancy rate indicate that rental properties will likely have stable tenancy. However, the reliance on market rates rather than FMR suggests that investors should be prepared to manage properties at higher rent levels, which could limit the pool of potential tenants to those who can afford market rates. #### Specific Actionable Insights 1. **Target Market-Rate Tenants**: Given the high market rents and the fact that the FMR is significantly lower, investors should focus on attracting tenants who can pay market rates. This would ensure a positive cash flow and align with the actual rental values in the area. 2. **Consider Mixed-Income Developments**: To cater to both market-rate and Section 8 voucher holders, investors could explore developing mixed-income housing projects. These projects can include a mix of units priced at market rates and others priced at FMR levels. This approach can help balance the financial viability of the project while providing affordable housing options. 3. **Utilize Incentives for Landlords**: The local government or housing authorities might offer incentives such as tax breaks or subsidies to landlords who accept Section 8 vouchers. Investors should research these programs to understand how they can offset some of the financial challenges of operating at FMR levels. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 80017 is to **Skip**. The FMR is too low compared to actual market rents, leading to potential financial losses if operating strictly at FMR levels. Instead, investors should target areas where the FMR is closer to the actual market rents, ensuring a positive cash flow and better alignment with the financial realities of the rental market. If investors still wish to engage in the Aurora, CO market, they should consider strategies that balance market-rate and FMR-level rentals or seek out additional incentives to make the venture financially viable.

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.