Location: Denver-Aurora-Centennial, CO | Metro: Denver-Aurora-Centennial, CO MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,730 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,810 |
| 4 Bedrooms | $3,140 |
| 5 Bedrooms | $3,642 |
| 6 Bedrooms | $4,079 |
| 7 Bedrooms | $4,405 |
| 8 Bedrooms | $4,625 |
The economics of Section 8 in ZIP code 80162 (Denver-Aurora-Centennial, CO) are based on the SAFMR, which stands for Small Area Fair Market Rent. For a two-bedroom apartment in this specific ZIP code, the SAFMR for fiscal year 2024 is set at $2180 per month. This figure represents the maximum amount that a landlord can charge a Section 8 tenant for rent.
A voucher under Section 8 covers the difference between the SAFMR and 30% of the tenant's income. The tenant is responsible for paying their portion, which is calculated as 30% of their adjusted monthly income. In addition to covering rent, the voucher also includes an allowance for utilities. The exact amount of the utility allowance varies but is typically around $300 to $400 per month for a two-bedroom unit.
To illustrate, let's assume a tenant's monthly income is $1,500. Thirty percent of this income would be $450, which is what the tenant must contribute towards the rent. If the utility allowance is $350, then the total amount covered by the voucher would be $2180 (SAFMR) - $450 (tenant contribution) + $350 (utility allowance) = $2080.
This means that if you charge the full SAFMR of $2180, there will be a reimbursement gap of $100 per month, which you will not receive from the housing authority. Conversely, if you charge less than the SAFMR, say $2000, the voucher would cover the entire amount plus provide an additional $130 for utilities, resulting in a surplus of $130 per month.
In summary, the SAFMR of $2180 for a two-bedroom apartment in ZIP 80162 ensures that landlords are aware of the maximum rent they can charge. However, the actual reimbursement will depend on the tenant's income and the utility allowance. Landlords should carefully consider these factors when setting their rental rates to avoid a reimbursement gap or to maximize any potential surplus.
Data Sources: FMR data from HUD (2027).
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.