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 | $1,490 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,470 | $397,654 | 0.62% | D |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 80105 reveals a significant gap between the Fair Market Rent (FMR) set at $1680 for fiscal year 2024 and the actual market rent of $1,031 according to the Census ACS. This gap stands at $649, which represents a 63% difference favoring the FMR over the market rent.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to achieve higher yields. Voucher tenants under the Section 8 program pay only a portion of their rent, typically around 30% of their income, while the government covers the rest up to the FMR limit. In ZIP 80105, this means that landlords can expect to receive the full $1680 per month for a unit, even if the market rate is lower. This discrepancy allows property owners to charge rents that are above the typical market rate without the risk of losing tenants, as the government subsidy ensures affordability for the voucher holders.
In the context of ZIP 80105, where only 8.7% of the population are renters, the median home value sits at $385,317, and the median income is $79,792, the potential for increased rental income through the Section 8 program is particularly attractive. The relatively low percentage of renters suggests that competition for rental properties might be less intense compared to areas with a higher proportion of renters, making it easier for landlords to fill units with voucher tenants. Moreover, the high median home value indicates a generally affluent area, but the median income figure shows that many residents still struggle with housing costs. This makes the Section 8 program an essential resource for securing affordable housing, thus providing a steady stream of tenants for landlords willing to participate.
However, landlords must also consider the administrative requirements and potential limitations associated with the Section 8 program. These include regular inspections, rent restrictions, and the necessity to adhere to federal guidelines, which can impact the overall management of the property. Despite these considerations, the financial benefits of receiving the higher FMR rates make the participation in the Section 8 program a compelling option for maximizing returns in ZIP 80105.
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.