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 | $1,980 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,450 |
| 3 Bedrooms | $3,210 |
| 4 Bedrooms | $3,600 |
| 5 Bedrooms | $4,176 |
| 6 Bedrooms | $4,677 |
| 7 Bedrooms | $5,051 |
| 8 Bedrooms | $5,304 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,450 | $564,832 | 0.43% | F |
| 3BR | $3,210 | $654,105 | 0.49% | F |
| 4BR | $3,600 | $817,797 | 0.44% | F |
| 5BR | $4,176 | $1,155,908 | 0.36% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 80124, located in Lone Tree, CO, within Douglas County, revolve around the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $2620 for fiscal year 2024. This figure represents the maximum amount that the program will pay towards rental costs for units in this specific ZIP code. However, it's important to note that the local market rent for a similar unit is currently lower, at $1,906 according to ZORI (Zillow Observed Rent Index).
A landlord participating in the Section 8 program receives a subsidy from the government to cover the majority of a tenant's rent. The actual amount paid is determined by subtracting the tenant's portion of the rent from the SAFMR. The tenant's portion is generally calculated as 30% of their adjusted monthly income. For example, if a tenant has an adjusted monthly income of $1,000, they would be responsible for paying $300 towards the rent.
In addition to the base rent, there are utility allowances that can vary based on the type of unit and its location. These allowances are designed to help cover the cost of utilities such as electricity, gas, water, and sewage. The exact amount of these allowances is not specified in the provided data but should be considered when calculating the total reimbursement received by the landlord.
To illustrate the typical reimbursement scenario, let's assume a two-bedroom apartment in ZIP 80124 has a market rent of $1,906. If the tenant's portion is $300, then the Section 8 program would pay the difference between the market rent and the tenant's contribution, up to the SAFMR limit. In this case, the program would pay $1,620 ($1,906 - $300), leaving a surplus for the landlord of $714 ($2,620 - $1,906).
However, if the market rent were higher, say $2,620, and the tenant's portion was still $300, the program would pay $2,320 ($2,620 - $300), exactly matching the SAFMR limit. This would mean no surplus for the landlord, but also no shortfall since the reimbursement matches the market rent.
Landlords should be aware that the SAFMR sets the ceiling for reimbursement, and if the market rent exceeds this amount, the landlord must absorb the difference. Conversely, if the market rent is below the SAFMR, the landlord benefits from a surplus. Given the SAFMR of $2,620 and the local market rent of $1,906, landlords in ZIP 80124 can expect a typical surplus of $714 per month for a two-bedroom apartment.
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.