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 | $2,620 |
| 1 Bedroom | $2,740 |
| 2 Bedrooms | $3,250 |
| 3 Bedrooms | $4,260 |
| 4 Bedrooms | $4,770 |
| 5 Bedrooms | $5,533 |
| 6 Bedrooms | $6,197 |
| 7 Bedrooms | $6,693 |
| 8 Bedrooms | $7,028 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,250 | $685,283 | 0.47% | F |
| 3BR | $4,260 | $616,387 | 0.69% | D |
| 4BR | $4,770 | $752,799 | 0.63% | D |
| 5BR | $5,533 | $954,667 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 80125 is situated in the affluent suburb of Littleton, Colorado. This neighborhood is characterized by a relatively low percentage of renters at just 4.7%, indicating a predominantly owner-occupied area. The population of 15,630 residents enjoys a high median household income of $179,983, which is significantly above the national average. Reflecting the economic status of its inhabitants, the median home value in ZIP 80125 stands at an impressive $731,208.
When it comes to rental economics, the disparity between the Fair Market Rent (FMR) and the actual market rents is notable. For fiscal year 2024, the FMR for ZIP 80125 is set at $3,140, whereas the market rent, as measured by ZORI (Zillow Observed Rent Index), is $2,295. This means that Section 8 vouchers can cover a substantial portion of the typical market rent, potentially making this area attractive for both hands-off voucher operators and hands-on value-add buyers.
The high FMR relative to the market rent suggests that landlords who accept Section 8 vouchers could benefit from a stable tenant base without sacrificing much on rent price. However, given the high median home value and income levels, hands-on value-add buyers might find opportunities to improve properties and command higher rents, still within the bounds of the FMR.
In summary, ZIP 80125 presents a favorable environment for Section 8 investors due to its economic profile and the generous voucher coverage. Whether the strategy is to maintain a passive investment or actively manage and enhance properties, the potential for success exists. The key will be understanding the local market dynamics and aligning investment strategies accordingly.
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.