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 | $2,130 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,640 |
| 3 Bedrooms | $3,460 |
| 4 Bedrooms | $3,870 |
| 5 Bedrooms | $4,489 |
| 6 Bedrooms | $5,028 |
| 7 Bedrooms | $5,430 |
| 8 Bedrooms | $5,702 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,640 | $502,466 | 0.53% | F |
| 3BR | $3,460 | $611,056 | 0.57% | F |
| 4BR | $3,870 | $722,878 | 0.54% | F |
| 5BR | $4,489 | $874,088 | 0.51% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2,750 for ZIP 80129 in fiscal year 2024 will sufficiently cover the mortgage on a home priced at $682,960. According to recent real estate data, the median home value in ZIP 80129 is around $643,400, indicating that the $682,960 home is slightly above average. To determine if the FMR can cover the mortgage, one must consider the interest rates and loan terms. Assuming a standard 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $682,960 home would be approximately $3,600. This suggests that the FMR alone cannot cover the mortgage costs, necessitating additional income sources such as a co-signer or second job.
The demand for rental properties in ZIP 80129 stands at 31.0%. An investor might ask if this percentage is sufficient to ensure a steady stream of tenants. The data indicates that Highlands Ranch, a part of Douglas County, Colorado, has a growing population, which could support increased rental demand. However, the 31.0% figure alone does not provide a complete picture. Factors such as employment opportunities, local amenities, and school quality also play a role in attracting renters. Without more granular data, it's challenging to definitively state the level of demand, but the trend towards growth is promising.
The final concern revolves around whether Housing Choice Vouchers will keep pace with market rents of $2,120. Current data shows that voucher amounts are typically adjusted annually based on cost-of-living changes and local market conditions. However, the exact amount of these adjustments is not specified in the available data. Given the historical trend of voucher adjustments lagging behind actual rent increases, it is prudent to assume that vouchers may not fully cover the market rents, leaving landlords to potentially subsidize the difference or face vacancies.
In summary, while ZIP 80129 presents opportunities, careful consideration of the financial landscape is essential. The FMR does not fully cover mortgage payments, the rental demand percentage needs context, and voucher amounts may not keep up with rising rents. These points highlight the need for thorough analysis before making investment decisions.
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.