Section 8 Fair Market Rent (FMR) for ZIP 80126 - 2027

Investment Score for ZIP 80126

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,260
1 Bedroom	$2,360
2 Bedrooms	$2,800
3 Bedrooms	$3,670
4 Bedrooms	$4,110
5 Bedrooms	$4,768
6 Bedrooms	$5,340
7 Bedrooms	$5,767
8 Bedrooms	$6,055

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,360	$282,880	0.83%	C
2BR	$2,800	$450,899	0.62%	D
3BR	$3,670	$622,652	0.59%	F
4BR	$4,110	$773,383	0.53%	F
5BR	$4,768	$1,004,731	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80126 (Highlands Ranch, CO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 80126 in Highlands Ranch, Colorado, is set by HUD for 2026. For a two-bedroom unit, the FMR is $2,670 per month. However, the Zillow median price for a two-bedroom home in this area is $470,373, which translates to a price-to-FMR ratio of 14.7 times. This means that the typical rent for a two-bedroom unit is significantly higher than the FMR, making it challenging for Section 8 voucher holders to find suitable housing. The voucher amount is only a fraction of what landlords would typically charge, leading to a scarcity of available units that accept vouchers. Specifically, the FMR for a two-bedroom unit represents only 18.9% of the median household income in the area ($169,882), indicating that even without a voucher, renters would struggle to afford the typical rental rates. #### Affordability & Renter Profile The population of Highlands Ranch is 44,882, with a median household income of $169,882. Only 17.2% of the residents are renters, suggesting that this is primarily a homeowner-dominated community. The occupancy rate of 97.6% indicates that the rental market is quite tight, with few vacant units available. Given the high median income and low percentage of renters, those who do rent in this area likely have above-average incomes and can afford the high rental costs. The affordability gap is stark; the FMR for a three-bedroom unit is $3,490, which is still far below the average rental rates. This makes it difficult for lower-income families to find affordable housing, especially if they rely on Section 8 vouchers. #### Investor Angle From an investor’s perspective, the ZIP code 80126 presents a challenging environment for cash flow based on FMRs. The FMR for a two-bedroom unit is $2,670, while the typical rental price is much higher. If an investor were to purchase a property and rent it out at the FMR, they would likely face significant financial pressure due to the high cost of acquisition and maintenance. The Zillow median price for a two-bedroom unit is $470,373, which implies a high initial capital investment. Additionally, the price-to-FMR ratio of 14.7 times suggests that the rental market is highly competitive and that properties rented at FMR levels would be less desirable compared to those rented at market rates. Therefore, the investment grade for this ZIP code is low, particularly for investors focusing solely on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the high FMRs for larger units (three and four-bedroom homes), investors might consider purchasing properties with three or more bedrooms. The FMR for a three-bedroom unit is $3,490, which is closer to the median rental price in the area. While still challenging, these units might be more attractive to landlords because they are more aligned with market expectations. 2. **Consider Non-Traditional Rental Markets**: Investors could explore non-traditional rental markets such as multi-family complexes or apartments that cater to young professionals and families with slightly higher incomes. These markets might offer better opportunities for cash flow and stability, even if they don't fully align with Section 8 voucher requirements. 3. **Develop Relationships with Local Landlords**: Building relationships with local landlords who are willing to accept Section 8 vouchers can be beneficial. Some landlords might be more flexible in terms of pricing or might offer incentives to attract tenants with vouchers. Engaging with these landlords could help mitigate some of the financial pressures associated with renting at FMR levels. #### Bottom Line For investors focused on Section 8 vouchers, the ZIP code 80126 (Highlands Ranch, CO) is not recommended. The high FMRs relative to the actual rental market and the tight occupancy rate make it difficult to find profitable investment opportunities. The recommendation is to **skip** this ZIP code unless you can secure a property with a three or four-bedroom unit, where the FMR is closer to the median rental price. Even then, the overall market dynamics suggest that this area is not ideal for Section 8-focused investments.

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.