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 | $1,900 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,350 |
| 3 Bedrooms | $3,080 |
| 4 Bedrooms | $3,450 |
| 5 Bedrooms | $4,002 |
| 6 Bedrooms | $4,482 |
| 7 Bedrooms | $4,841 |
| 8 Bedrooms | $5,083 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,350 | $506,362 | 0.46% | F |
| 3BR | $3,080 | $628,308 | 0.49% | F |
| 4BR | $3,450 | $743,184 | 0.46% | F |
| 5BR | $4,002 | $876,621 | 0.46% | F |
U.S. Census Bureau data (2024)
ZIP 80138, located in Parker, Colorado, within the Denver-Aurora-Centennial MSA, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This area should be considered an appreciation play due to several key factors.
The first factor is the low price-cut share at just 0.2%. This indicates that homes in this ZIP code are highly sought after and rarely require price reductions to sell. In addition, the days on market (DOM) average is 28 days, which is relatively short. This suggests that homes in Parker are selling quickly, a sign of strong demand and a robust local economy.
Another important consideration is the significant spread between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for ZIP 80138 is set at $2490, while the current market rent stands at $1897. This difference allows landlords to potentially increase rents closer to the FMR over time without alienating tenants, thus enhancing the property's appreciation potential.
The median home value in ZIP 80138 is $723,684, reflecting a high-end residential market. However, the median income in the area is $145,013, indicating that residents have the financial capacity to afford higher rents and home values. This economic strength supports the idea that properties in this ZIP code can appreciate in value over time, making it a solid choice for an appreciation play within a Section 8 portfolio.
A final point to consider is the 20.6% renter share. While this percentage is not negligible, it is lower than many other areas, suggesting that homeownership is still prevalent and valued in Parker. This balance between renters and owners can provide stability in the market, reducing the risk of rapid shifts in rental demand that could impact appreciation.
In conclusion, ZIP 80138 is best suited as an appreciation play in a Section 8 portfolio strategy. The combination of low price-cut shares, quick sales, and the ability to potentially increase rents towards the FMR, alongside a strong median income, all point to a favorable environment for property appreciation.
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.