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 | $1,530 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,770 |
| 5 Bedrooms | $3,213 |
| 6 Bedrooms | $3,599 |
| 7 Bedrooms | $3,887 |
| 8 Bedrooms | $4,081 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,890 | $339,640 | 0.56% | F |
| 3BR | $2,480 | $451,125 | 0.55% | F |
| 4BR | $2,770 | $530,294 | 0.52% | F |
| 5BR | $3,213 | $595,932 | 0.54% | F |
U.S. Census Bureau data (2024)
Commerce City, specifically the 80022 ZIP code, is transforming from a historical industrial hub into a more residential-focused suburb. While the area retains a strong manufacturing presence, anchored by major employers like Suncor Energy, the neighborhood is seeing an influx of new retail and community amenities. This blend of blue-collar roots and modern development creates a distinct character where investors can often find value-add opportunities that are becoming scarce in the core Denver metro area.
From a strictly numerical standpoint, 80022 presents a complex picture for Section 8 strategies. The FY2026 Fair Market Rent for a 2-bedroom unit is $1,930, but the current market rent sits significantly higher at $2,664. This creates a $734 monthly gap between the voucher payment ceiling and what market-rate tenants are paying. Meanwhile, the median home value is $474,903, with properties sitting on the market for a median of 69 days. The 2BR median sale price of $345,358 suggests entry-level acquisition points may exist, though the rent gap suggests vouchers alone may not fully capture the neighborhood's rental potential.
Despite the high median household income of $104,396, the renter share is only 23.9%, indicating a predominantly ownership-oriented community. This low rental concentration suggests that high-quality rental inventory is relatively scarce, which can drive demand for well-maintained units. However, families utilizing vouchers will scrutinize school options; while local districts are improving, some ratings trail those of adjacent suburbs, potentially affecting the urgency of family-based tenant demand unless the property offers superior amenities or proximity to transit.
Given the disparity between Fair Market Rent and market rates, the strongest investor angle here is not maximum cash flow via vouchers, but rather long-term appreciation and stability. The $734 gap implies that a standard voucher leaves money on the table compared to the open market. Therefore, investors should target the 23.9% of renters who can afford market rates or above-market vouchers, banking on the area’s economic growth rather than strictly subsidized cash flow. The relatively high days on market (69) also signals that properties must be priced competitively or offer premium condition to move quickly.
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.