Location: Denver-Aurora-Centennial, CO | Metro: Denver-Aurora-Centennial, CO MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,480 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
U.S. Census Bureau data (2024)
The classification of ZIP code 80101, located in Denver, Colorado, hinges on a careful analysis of its financial metrics related to rental yields and market stability. The Financial Maximum Rent (FMR) for 2024 is set at $1,680. This figure represents the maximum amount that can be charged for a rent-subsidized unit under the Section 8 program, indicating a potential yield for landlords participating in the subsidy scheme.
In contrast, the market rent stands at $1,375, which is lower than the FMR. This suggests that landlords who accept Section 8 vouchers could see a higher net income per unit compared to those who rely solely on market rents. However, it's important to note that the median home value in the area is significantly higher at $506,501, which might influence the type of properties available for rental and the overall investment strategy.
Regarding stability, the ZIP code has a notable 15.7% of residents classified as renters, which is relatively low. This percentage indicates that a majority of the housing stock is owner-occupied, potentially leading to less demand for rentals. Unfortunately, the data does not provide an average number of days on the market (DOM), which would have helped gauge how quickly rental units typically turn over.
The median household income in ZIP 80101 is $70,417, which provides insight into the economic conditions of the area. While this income level supports a moderate standard of living, it also suggests that many residents might find it challenging to afford the high median home value without significant financial assistance. This contextually places the ZIP code in a middle-ground scenario where it offers opportunities for both steady cash flow and potentially higher yields through participation in the Section 8 program.
To summarize, ZIP 80101 leans towards being a steady-cashflow zone due to the low percentage of renters and the absence of data suggesting high turnover rates. However, the opportunity for higher yields exists for landlords willing to participate in the Section 8 program, given the disparity between the FMR and market rent. The high median home value further complicates the market dynamics, making it less suitable for short-term flipping strategies but more appropriate for long-term rental investments.
Data Sources: FMR data from HUD (2027). 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.