Section 8 Fair Market Rent (FMR) for ZIP 80206 - 2027

Location: Denver-Aurora-Centennial, CO | Metro: Denver-Aurora-Centennial, CO MSA

Investment Score for ZIP 80206

F
Monthly Rent (2BR)
$2,330
Median Price (2BR)
$629,379
1% Rule
0.37%
Annual Yield
4.44%

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$1,880
1 Bedroom$1,970
2 Bedrooms$2,330
3 Bedrooms$3,060
4 Bedrooms$3,420
5 Bedrooms$3,967
6 Bedrooms$4,443
7 Bedrooms$4,798
8 Bedrooms$5,038

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,970 $290,112 0.68% D
2BR $2,330 $629,379 0.37% F
3BR $3,060 $1,024,748 0.3% F
4BR $3,420 $1,287,249 0.27% F
5BR $3,967 $1,586,328 0.25% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
24,383
Median Household Income
$101,594
Housing Units
15,314
Renter Percentage
53.3%
Occupancy Rate
91.8%
Renter Occupied
7,501

ZIP code 80206, located in Denver, CO, is situated within the Denver-Aurora-Centennial, CO MSA metro area. The Fair Market Rent (FMR) for 80206 in fiscal year 2024 is set at $2390. This figure is notably higher than the market rent of $1,838, indicating that the federal guidelines for rental assistance are above what the local market typically charges.

The median home value in 80206 is $851,245, which is on par with or slightly above the typical home values found across the Denver-Aurora-Centennial, CO MSA. With a renter share of 53.3%, this ZIP code has a higher proportion of renters compared to many other areas within the metro, where the average renter share is lower.

The divergence between the FMR and the market rent, combined with the high renter share, suggests that 80206 could be a sweet spot for Section 8 landlords. While the home values are relatively high, the market rents are below the FMR, making it attractive for tenants receiving rental assistance. This dynamic can create a stable tenant pool for landlords willing to accept Section 8 vouchers.

Given the specific figures, 80206 appears to be a mid-tier neighborhood within the Denver-Aurora-Centennial, CO MSA. It offers a balance between premium housing values and a rent level that is accessible to those utilizing Section 8 assistance. The higher-than-average renter share points towards an area where a significant portion of residents rely on rental assistance, potentially providing a steady stream of qualified tenants for landlords.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.