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 | $2,140 |
| 1 Bedroom | $2,240 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,480 |
| 4 Bedrooms | $3,890 |
| 5 Bedrooms | $4,512 |
| 6 Bedrooms | $5,053 |
| 7 Bedrooms | $5,457 |
| 8 Bedrooms | $5,730 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,650 | $552,352 | 0.48% | F |
| 3BR | $3,480 | $574,135 | 0.61% | D |
| 4BR | $3,890 | $686,083 | 0.57% | F |
| 5BR | $4,512 | $815,615 | 0.55% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 80109, Castle Rock, CO, involve understanding both the SAFMR (Small Area Fair Market Rent) and the local market rent. For a two-bedroom apartment in this ZIP code, the SAFMR for FY 2024 is set at $2770. This figure represents the maximum amount that the federal government will reimburse landlords for under the Section 8 Housing Choice Voucher program. However, the local market rent, measured by ZORI (Zillow Observed Rent Index), stands at $2,612, indicating that the SAFMR is slightly above the average market rent.
A landlord should know that the actual payment received from a Section 8 voucher is calculated based on the SAFMR, the tenant's portion of the rent, and any applicable utility allowances. The tenant's portion is typically 30% of their adjusted income. If a tenant has an adjusted income of $2,000 per month, they would pay $600 towards the rent. The remaining amount up to the SAFMR of $2770 is covered by the government, meaning the landlord would receive $2170 from the housing authority.
In addition to the base rent, there are utility allowances that can vary depending on the household size and location. These allowances are designed to cover the cost of utilities such as electricity, gas, water, and sewage. For a two-bedroom unit in ZIP 80109, the utility allowance might add an additional $200-$300 to the monthly reimbursement, bringing the total reimbursement close to the SAFMR of $2770.
Given these specifics, landlords in ZIP 80109 will find that the Section 8 voucher system generally provides a slight surplus over the local market rent. With the local market rent at $2,612 and the SAFMR at $2770, plus potential utility allowances, landlords can expect a reimbursement that exceeds the average market rent. This surplus can range from $158 to $366 per month, depending on the exact utility allowance applied to the voucher.
To summarize, landlords participating in the Section 8 program in ZIP 80109 can anticipate receiving a reimbursement that is higher than the local market rent for a two-bedroom apartment. This provides a financial buffer that can help offset some of the administrative burdens associated with the program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.