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 | $1,640 |
| 1 Bedroom | $1,800 |
| 2 Bedrooms | $2,160 |
| 3 Bedrooms | $2,830 |
| 4 Bedrooms | $3,190 |
| 5 Bedrooms | $3,700 |
| 6 Bedrooms | $4,144 |
| 7 Bedrooms | $4,476 |
| 8 Bedrooms | $4,700 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,800 | $981,789 | 0.18% | F |
| 2BR | $2,160 | $775,934 | 0.28% | F |
| 3BR | $2,830 | $840,806 | 0.34% | F |
| 4BR | $3,190 | $973,745 | 0.33% | F |
| 5BR | $3,700 | $1,153,580 | 0.32% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 80118, Larkspur, Colorado, within Douglas County, operate under specific financial guidelines that affect both landlords and tenants. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $2,940. This figure is unique to this specific ZIP code and reflects the local rental market conditions.
In contrast, the local market rent for a two-bedroom unit in ZIP 80118 is higher, at $3,501, according to the Census American Community Survey (ACS). This discrepancy between the SAFMR and the actual market rent can be significant when considering the financial implications for landlords.
A landlord participating in the Section 8 program should understand that the total rent paid includes both the voucher payment and the tenant's contribution. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500 per month, the tenant would contribute approximately $450 toward the rent. The remaining amount is covered by the voucher, which in this case would be around $2,490.
Additionally, the Section 8 program provides utility allowances. For a two-bedroom unit, the allowance can vary but often ranges from $200 to $300 per month. Assuming a utility allowance of $250, the total monthly reimbursement a landlord can expect from a Section 8 voucher for a two-bedroom apartment would be $2,740.
To summarize, if a landlord rents out a two-bedroom unit for the local market rate of $3,501, they would face a reimbursement gap of $761 per month from the Section 8 voucher alone. This means that landlords must either accept a lower net income compared to the market rate or seek additional sources of funding to cover the difference.
Alternatively, if a landlord sets the rent at the SAFMR level of $2,940, the reimbursement gap would be smaller, at $200. In this scenario, landlords still receive less than the market rate but minimize their financial shortfall.
It is important for landlords to carefully consider these economic factors before deciding whether to participate in the Section 8 program for their properties in ZIP 80118. The choice between market rate and SAFMR can significantly impact their bottom line.
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.