Location: Denver-Aurora-Centennial, CO | Metro: Boulder, 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 | $1,610 |
| 1 Bedroom | $1,840 |
| 2 Bedrooms | $2,160 |
| 3 Bedrooms | $2,870 |
| 4 Bedrooms | $3,340 |
| 5 Bedrooms | $3,874 |
| 6 Bedrooms | $4,339 |
| 7 Bedrooms | $4,686 |
| 8 Bedrooms | $4,920 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,840 | $271,874 | 0.68% | D |
| 2BR | $2,160 | $457,446 | 0.47% | F |
| 3BR | $2,870 | $615,381 | 0.47% | F |
| 4BR | $3,340 | $837,322 | 0.4% | F |
| 5BR | $3,874 | $1,110,192 | 0.35% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 80026 in Lafayette, Colorado, reveals a favorable environment for cashflow. The HUD Fair Market Rent (FMR) for FY 2024 is set at $2,290, which is above the Zillow Observed Rental Index (ZORI) of $2,146. This indicates that voucher tenants will cashflow at FMR, providing a steady income stream without the need for premium units.
To further understand the investment potential, consider the median home value of $674,671. The rent-to-price ratio can be calculated as follows: divide the ZORI ($2,146) by the median home value ($674,671) and multiply by 100. This yields a ratio of approximately 0.32%, suggesting that rental properties are relatively undervalued compared to their purchase price.
The median days on market (DOM) stands at 35 days, indicating a robust demand for rental properties. Additionally, the low price-cut share of 0.2% suggests that sellers are able to maintain their asking prices, implying strong buyer interest in the area.
In conclusion, the strongest investor angle in ZIP 80026 is cashflow. With voucher rents exceeding market rates and a favorable rent-to-price ratio, investors can expect consistent positive cashflow from their properties.
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.