Location: Denver-Aurora-Centennial, CO | Metro: Colorado Springs, CO HUD Metro FMR Area
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 | $1,030 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $613,835 | 0.23% | F |
| 3BR | $1,900 | $660,857 | 0.29% | F |
| 4BR | $2,160 | $765,406 | 0.28% | F |
| 5BR | $2,506 | $843,701 | 0.3% | F |
U.S. Census Bureau data (2024)
The ZIP code 80106 is located in Elbert, Colorado, a small town characterized by its rural setting and low population density. With only 4,455 residents, the area is predominantly owned by homeowners, as evidenced by the fact that only 5.0% of the population are renters. The median household income in this region stands at a robust $136,852, indicating a relatively affluent community. The median home value is also high, sitting at $729,954, which further underscores the economic status of the area.
Turning to the economics of renting, the Fair Market Rent (FMR) for ZIP 80106 as of the fiscal year 2024 is set at $1,260. This figure is slightly above the reported market rent of $1,219, according to the Census American Community Survey (ACS). This suggests that landlords participating in the Section 8 program could potentially receive higher rents than the current market rate, making it an attractive proposition for those looking to secure steady rental income.
Given these factors, ZIP 80106 would likely appeal more to a hands-off voucher operator rather than a hands-on value-add buyer. The high median income and home values indicate a stable, if not conservative, market where the primary need is for affordable housing options, which Section 8 can provide. For hands-on investors seeking to increase property value through renovations or other improvements, the limited number of renters and the overall affluence of the community may present fewer opportunities for significant returns on investment. However, for those focused on reliable cash flow with minimal tenant management issues, the ZIP 80106 offers a solid foundation.
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.