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 | $2,070 |
| 1 Bedroom | $2,170 |
| 2 Bedrooms | $2,570 |
| 3 Bedrooms | $3,370 |
| 4 Bedrooms | $3,770 |
| 5 Bedrooms | $4,373 |
| 6 Bedrooms | $4,898 |
| 7 Bedrooms | $5,290 |
| 8 Bedrooms | $5,555 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,170 | $211,640 | 1.03% | B |
| 2BR | $2,570 | $355,204 | 0.72% | D |
| 3BR | $3,370 | $559,354 | 0.6% | D |
| 4BR | $3,770 | $709,546 | 0.53% | F |
| 5BR | $4,373 | $823,542 | 0.53% | F |
U.S. Census Bureau data (2024)
2550 is the Fair Market Rent (FMR) for ZIP code 80122 in Centennial, CO, for fiscal year 2024. This figure represents the maximum amount landlords can charge tenants participating in the Section 8 program. In contrast, the actual market rent, known as ZORI, stands at 2189, indicating a gap between government-set rates and the private market. The median home value in the area is 639540, reflecting a robust housing market. Renter share in Centennial is 18.0%, showing a significant portion of the population relies on rental properties. The median income of 128691 suggests residents have the financial capability to meet or exceed the market rent expectations. Properties in this ZIP code typically spend 25 days on the market before securing a tenant, which is relatively quick and favorable for landlords. The price-cut share of 0.3% indicates that very few landlords need to reduce their asking prices to attract tenants, further underscoring the strong demand for rental properties. Given these metrics, landlords in Centennial can confidently set rents close to the FMR without fear of vacancy. Investors should note the potential for modest profit margins due to the proximity of the FMR to the ZORI, but the low price-cut share and quick DOM suggest a stable and desirable investment climate.
Section 8 Verdict: Favorable for landlords and small-portfolio investors in Centennial, CO, with minimal adjustments needed to align rents with market rates.
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.