Section 8 Fair Market Rent (FMR) for ZIP 80135 - 2027

Location: Denver-Aurora-Centennial, CO | Metro: Teller County, CO HUD Metro FMR Area

Investment Score for ZIP 80135

F
Monthly Rent (2BR)
$2,490
Median Price (2BR)
$590,368
1% Rule
0.42%
Annual Yield
5.06%

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$2,010
1 Bedroom$2,100
2 Bedrooms$2,490
3 Bedrooms$3,270
4 Bedrooms$3,650
5 Bedrooms$4,234
6 Bedrooms$4,742
7 Bedrooms$5,121
8 Bedrooms$5,377

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 $2,100 $458,345 0.46% F
2BR $2,490 $590,368 0.42% F
3BR $3,270 $864,606 0.38% F
4BR $3,650 $1,107,100 0.33% F
5BR $4,234 $1,505,738 0.28% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
4,141
Median Household Income
$136,083
Housing Units
1,907
Renter Percentage
11.3%
Occupancy Rate
88.0%
Renter Occupied
189

The real estate landscape in ZIP 80135, Sedalia, CO, suggests a robust market with strong pricing power for the foreseeable future. With a median home value of $936,188, the area is positioned at a premium level, indicative of a high-end residential market. The fact that only 0.2% of listings have seen reductions signals that sellers are maintaining their prices, reflecting confidence in the local economy and housing demand. This stability, combined with the unavailability of day-specific median days on market (DOM) data, which typically indicates quick sales, points to a seller's market where homes are selling swiftly and at or near asking price.

For landlords and small-portfolio investors, the rental market presents an interesting dynamic. The Fair Market Rent (FMR) for ZIP 80135 as of FY 2024 is set at $1,680, whereas the current market rent stands at $1,992. This gap between the FMR and actual market rents highlights the potential for landlords to maintain higher rental rates, even as they navigate the complexities of federal housing assistance programs. The higher market rent suggests that there is a segment of the population willing to pay above the subsidized rate, which can be beneficial for those investors looking to maximize their rental income.

In terms of long-term investment, the data points to a market with limited realistic appreciation potential. The premium median home value and the low percentage of price reductions indicate a saturated market where significant growth is unlikely. However, the strength of the rental market provides a stable income stream, making Sedalia a solid choice for investors focused on cash flow rather than capital appreciation. The ability to command rents above the FMR ensures a steady return on investment, aligning well with strategies aimed at generating consistent revenue from properties.

To summarize, the current setup in Sedalia, CO, favors sellers and landlords who can leverage strong pricing power and maintain high rental rates. While the market signals limited opportunities for substantial property value increases, it offers a reliable environment for those seeking to invest in real estate for its income-generating capabilities.

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.