Location: Denver-Aurora-Centennial, CO | Metro: Denver-Aurora-Centennial, CO MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,660 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $3,020 |
| 5 Bedrooms | $3,503 |
| 6 Bedrooms | $3,923 |
| 7 Bedrooms | $4,237 |
| 8 Bedrooms | $4,449 |
The Section 8 analysis for ZIP code 80036 focuses on the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, as of the fiscal year 2024, is set at $2100. However, due to the unavailability of current market rent data, we cannot provide a direct comparison in terms of dollars and percentage.
In a scenario where the FMR exceeds the market rent, which has been observed in similar contexts, landlords can leverage the difference to enhance their yield. Voucher tenants, who are guaranteed rental payments through government subsidies, offer a reliable stream of income that can outperform the local market rates. This makes properties in ZIP 80036 attractive for investors looking to maximize returns.
Conversely, if the FMR is below the market rent, landlords face a different challenge. Accepting housing voucher tenants means renting properties at rates lower than what could be achieved in the open market. This discrepancy reduces potential earnings and can affect the overall profitability of the investment portfolio.
Understanding the local context is crucial. In Unknown, CO, the percentage of renters, median home value, and median income figures are not available. These metrics would typically inform decisions about property management and investment strategies. For instance, a higher percentage of renters might indicate a strong demand for affordable housing, while a high median income could suggest that residents are better able to afford market rents.
To conclude, the Section 8 program in ZIP 80036 presents opportunities for yield enhancement when FMRs are above market rates. However, it also poses risks of reduced profitability when FMRs fall below market levels. Landlords and small-portfolio investors must carefully weigh these factors against the local real estate landscape to make informed decisions.
Data Sources: FMR data from HUD (2027).
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.