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 | $1,770 |
| 1 Bedroom | $1,850 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,870 |
| 4 Bedrooms | $3,210 |
| 5 Bedrooms | $3,724 |
| 6 Bedrooms | $4,171 |
| 7 Bedrooms | $4,505 |
| 8 Bedrooms | $4,730 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,850 | $414,839 | 0.45% | F |
| 2BR | $2,190 | $492,744 | 0.44% | F |
| 3BR | $2,870 | $554,930 | 0.52% | F |
| 4BR | $3,210 | $643,225 | 0.5% | F |
| 5BR | $3,724 | $763,418 | 0.49% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 80104, Castle Rock, CO, does not work favorably for landlords. The Fair Market Rent (FMR) set at $2440 for the fiscal year 2024 is higher than the actual market rent, which stands at $2,156 as indicated by ZORI (Zillow Observed Rent Index). This suggests that landlords may face difficulties in renting out properties at the FMR rate.
Acquisition in this area is relatively affordable. With a median home value of $614,723, potential buyers can secure a property without excessive financial strain. The 33-day Days on Market (DOM) indicates a swift turnover time for listings, suggesting strong buyer interest. Additionally, only 0.3% of homes have been subject to price cuts, which further supports the notion that the housing market is stable and attractive for acquisition.
Tenant demand is present but not overwhelming. The ZIP code has a population of 38,479, with 20.6% of residents being renters. This implies that while there is a segment of the population looking for rental properties, it might be smaller compared to other areas with higher renter shares.
In summary, while the acquisition cost in ZIP 80104 is reasonable and the market shows signs of stability, the mismatch between FMR and actual market rent could pose challenges for landlords. Tenant demand exists, though it is limited to about one-fifth of the population. Landlords should carefully consider these factors before investing in this market.
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.