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 | $1,780 |
| 1 Bedroom | $1,870 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,900 |
| 4 Bedrooms | $3,240 |
| 5 Bedrooms | $3,758 |
| 6 Bedrooms | $4,209 |
| 7 Bedrooms | $4,546 |
| 8 Bedrooms | $4,773 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,210 | $436,080 | 0.51% | F |
| 3BR | $2,900 | $593,849 | 0.49% | F |
| 4BR | $3,240 | $776,602 | 0.42% | F |
| 5BR | $3,758 | $1,096,936 | 0.34% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 80207 (Denver, CO, Denver County) are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1940 for fiscal year 2024. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this specific ZIP code. Local market rents, as measured by ZORI (Zillow Observed Rent Index), run higher at $2,408.
A voucher payment consists of two parts: the subsidy from the government and the tenant's contribution. The tenant is generally required to pay 30% of their adjusted income toward rent. In ZIP 80207, if we assume an average adjusted income of $16,000 per year, the tenant would contribute approximately $400 monthly towards rent. This calculation is based on the standard 30% requirement, which translates into a fixed amount that does not vary with the actual rent charged.
Beyond the base rent, there are utility allowances. These allowances can vary but typically cover a portion of the tenant's electricity, gas, water, and sewer costs. For a two-bedroom unit, the utility allowance might be around $200 per month. This allowance is intended to help cover the cost of utilities and is added to the voucher payment.
To summarize, the total voucher reimbursement for a two-bedroom apartment in ZIP 80207 would be the sum of the SAFMR and the utility allowance. This amounts to $1940 + $200 = $2140. However, landlords should note that the tenant's portion of the rent must also be considered. If the tenant contributes $400, the total monthly rent covered by the voucher and tenant combined is $2140 + $400 = $2540.
Given the local market rent of $2,408, landlords would see a slight surplus of about $132 per month over the ZORI. This surplus is modest but can still provide a positive financial outcome for landlords participating in the Section 8 program. It's important to remember that these calculations are based on average figures; individual cases may vary depending on the tenant's income and specific utility costs.
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.