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 | $1,940 |
| 1 Bedroom | $2,030 |
| 2 Bedrooms | $2,400 |
| 3 Bedrooms | $3,150 |
| 4 Bedrooms | $3,520 |
| 5 Bedrooms | $4,083 |
| 6 Bedrooms | $4,573 |
| 7 Bedrooms | $4,939 |
| 8 Bedrooms | $5,186 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,030 | $295,412 | 0.69% | D |
| 2BR | $2,400 | $374,408 | 0.64% | D |
| 3BR | $3,150 | $577,911 | 0.55% | F |
| 4BR | $3,520 | $783,084 | 0.45% | F |
| 5BR | $4,083 | $929,538 | 0.44% | F |
U.S. Census Bureau data (2024)
ZIP 80112, located in Centennial, CO, within the Denver-Aurora-Centennial, CO MSA, serves as an ideal appreciation play for a Section 8 portfolio strategy. The area's low price-cut share at 0.3%, along with a relatively short days on market (DOM) period of 34 days, indicates strong demand and minimal need for price adjustments, which are key factors for appreciation.
The median fair market rent (FMR) for ZIP 80112 in fiscal year 2024 is set at $2380, while the current market rent stands at $1945. This creates a positive spread for Section 8 properties, allowing landlords to potentially profit from the higher government subsidy rates compared to typical market rents. The median home value of $619,219 further supports the notion that property values in this area are likely to appreciate over time due to the overall high value of homes in the neighborhood.
Apart from the favorable appreciation conditions, the ZIP code also features a median household income of $108,874, suggesting a robust economic base that can support rental prices and property values. With 47.6% of residents being renters, there is a significant population that could benefit from Section 8 housing, thereby increasing the potential tenant pool and reducing vacancy rates.
In conclusion, ZIP 80112 is best categorized as an appreciation play within a Section 8 portfolio strategy. Its strong rental demand, short DOM periods, and high median home values make it a promising investment for long-term capital growth, complemented by the positive financial dynamics of Section 8 subsidies.
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.