Section 8 Fair Market Rent (FMR) for ZIP 80020 - 2027

Investment Score for ZIP 80020

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	$1,940
1 Bedroom	$2,030
2 Bedrooms	$2,410
3 Bedrooms	$3,160
4 Bedrooms	$3,540
5 Bedrooms	$4,106
6 Bedrooms	$4,599
7 Bedrooms	$4,967
8 Bedrooms	$5,215

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	$2,030	$310,542	0.65%	D
2BR	$2,410	$431,085	0.56%	F
3BR	$3,160	$540,036	0.59%	F
4BR	$3,540	$625,681	0.57%	F
5BR	$4,106	$741,823	0.55%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80020 (Broomfield, CO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 80020 in 2026 is set at $2360 for a two-bedroom unit, which represents approximately 24.2% of the median household income in the area. This FMR is intended to reflect the average rent that voucher holders can afford. However, the actual rental market in Broomfield is significantly higher, with the Zillow median price for a two-bedroom unit being $445,987. This translates to a price-to-FMR ratio of 15.7x, indicating that the actual market rents are much higher than what the FMR suggests. Given these figures, it is clear that voucher holders face significant constraints in finding affordable housing. The disparity between the FMR and actual market rents means that landlords who accept Section 8 vouchers must be willing to rent below market rates. For instance, a landlord renting a two-bedroom unit at the FMR would be charging $2360 per month, whereas the market rate is likely much higher. #### Affordability & Renter Profile ZIP code 80020 has a population of 54,201, with 33.3% of residents being renters. The occupancy rate is high at 97.1%, suggesting that there is strong demand for rental properties in the area. Given the median household income of $117,243, many residents can afford market-rate rents, but those relying on Section 8 vouchers will struggle to find suitable housing. The tight rental market indicates that there is limited supply relative to demand, particularly for units that fall within the FMR range. This makes it challenging for low-income renters to find affordable housing options. Additionally, the high median household income implies that the majority of residents are not dependent on government assistance for housing, further exacerbating the affordability gap for voucher holders. #### Investor Angle From an investor perspective, the ZIP code 80020 presents a mixed picture. While the overall rental market is robust and offers potential for high returns, the focus on Section 8 vouchers introduces additional considerations. To determine if this ZIP code is cash-flow positive at FMR, we need to look at the cost of acquiring and maintaining rental properties. The Zillow median price for a two-bedroom unit is $445,987, which is well above the FMR of $2360. If an investor were to purchase a property at this median price, they would need to ensure that the rental income covers the mortgage, maintenance, and other costs. Assuming a typical mortgage rate of around 4.5% and a down payment of 20%, the monthly mortgage payment for a $445,987 property would be approximately $1875. Adding in maintenance, insurance, and other expenses, the total monthly cost could easily exceed the FMR of $2360. Therefore, while the market rents are high, accepting Section 8 vouchers would likely result in lower cash flow compared to market-rate rentals. In terms of investment grade, the high median household income and strong demand for rental properties suggest that the area is generally stable and attractive for investment. However, the challenge lies in finding a balance between accepting vouchers and maximizing returns. Investors who are willing to accept Section 8 vouchers might find it difficult to achieve positive cash flow due to the significant difference between FMR and market rents. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Investors should consider focusing on one-bedroom or studio units where the FMR is lower ($1980 and $1860 respectively). These units are more likely to generate positive cash flow when rented at FMR rates, especially if the investor can acquire them at a lower price point than the Zillow median. 2. **Explore Subsidies and Incentives**: Given the high cost of living in Broomfield, investors might benefit from exploring additional subsidies and incentives available for landlords who accept Section 8 vouchers. These programs can help offset the lower rental income and improve the financial viability of such investments. 3. **Diversify Tenant Mix**: To maintain a steady cash flow, investors should consider diversifying their tenant mix by offering a combination of Section 8 and market-rate rentals. This approach allows landlords to leverage the high demand for rental properties while still providing affordable housing options to low-income residents. #### Bottom Line For investors focused specifically on Section 8 vouchers, the recommendation for ZIP code 80020 is to **Skip**. The significant gap between the FMR and actual market rents makes it challenging to achieve positive cash flow, especially for larger units like two-bedroom or three-bedroom apartments. Instead, investors might want to explore areas with a closer alignment between FMR and market rents, or focus on smaller units where the FMR is more competitive with market rates. Alternatively, investors could consider a diversified strategy that includes both Section 8 and market-rate tenants to balance financial risks and rewards.

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.