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 | $1,480 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,890 | $385,044 | 0.49% | F |
| 3BR | $2,470 | $526,910 | 0.47% | F |
| 4BR | $2,750 | $530,899 | 0.52% | F |
| 5BR | $3,190 | $687,983 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 80136 (Strasburg, CO) reveals a significant disparity between federally set Fair Market Rents (FMRs) and local market rents, impacting potential gross yields for real estate investments.
The annualized 2BR FMR for FY 2024 stands at $1730 per month, equating to an annual rent of $20,760. Against the median home value of $537,517, this scenario implies a gross yield of approximately 3.86%. This calculation is derived by dividing the annual rent ($20,760) by the median home value ($537,517).
In contrast, using the Census ACS reported market rent of $1430 per month for a 2BR unit, the annual rent totals $17,160. This results in a gross yield of roughly 3.2%, calculated by dividing the annual market rent ($17,160) by the median home value ($537,517).
The gross yield based on the FMR appears more favorable at first glance. However, given Strasburg's renter density of only 9.0%, it is crucial to consider the realistic occupancy rates and demand for rental properties under the Section 8 program. The N/A-day DOM (days on market) suggests either limited data or a highly efficient local real estate market, where listings may not stay active long enough to provide meaningful insights into typical vacancy durations.
While the FMR-based gross yield of 3.86% offers a higher return, it is important to recognize that the actual rental income may be closer to the market rent figure of $1430 per month, resulting in a lower gross yield of 3.2%. This is because the number of potential renters who can afford or qualify for the FMR may be limited by the area's low renter density, making it difficult to consistently achieve the higher rent amount.
Landlords and small-portfolio investors should therefore focus on the more conservative gross yield of 3.2% when evaluating the financial viability of Section 8 properties in ZIP 80136. This approach aligns with the reality of the local rental market and provides a clearer picture of what can realistically be expected in terms of rental income.
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.