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 | $1,950 |
| 1 Bedroom | $2,040 |
| 2 Bedrooms | $2,420 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,550 |
| 5 Bedrooms | $4,118 |
| 6 Bedrooms | $4,612 |
| 7 Bedrooms | $4,981 |
| 8 Bedrooms | $5,230 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,040 | $323,700 | 0.63% | D |
| 2BR | $2,420 | $598,057 | 0.4% | F |
| 3BR | $3,180 | $811,841 | 0.39% | F |
| 4BR | $3,550 | $1,132,017 | 0.31% | F |
| 5BR | $4,118 | $1,824,841 | 0.23% | F |
U.S. Census Bureau data (2024)
The ZIP code 80210 in Denver, CO, presents a complex rental market scenario for both tenants and landlords. The median income in this area stands at $127,270, which provides a baseline for understanding the financial capacity of potential renters. However, the market rate rent, known as the Zillow Observed Rent Index (ZORI), is set at $2,092 per month. This figure represents the average cost of renting an apartment in the area, but it doesn't fully capture the affordability landscape.
To further analyze affordability, consider the Fair Market Rent (FMR) for the zip code, which is $2,190 for fiscal year 2024. This is the amount the government deems sufficient for a household to pay for housing without spending more than 30% of their income on rent. Given the median income, a household could theoretically afford the ZORI rate, but the FMR is slightly higher, indicating a tighter budget for those relying solely on their income.
In ZIP 80210, 43.9% of the 39,113 population are renters. This means there are approximately 17,261 renters in the area. The affordability gap between the ZORI and FMR suggests that many renters might find it challenging to secure housing at the market rate, especially if they're using their income alone without additional financial assistance. This gap impacts landlord competition, as properties priced closer to the ZORI might attract more cash-paying tenants who are willing to pay less than the FMR.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While the FMR offers a higher payment standard, the significant portion of the population that relies on vouchers may limit the pool of potential tenants willing to pay the full FMR. Landlords should weigh the benefits of accepting vouchers, which ensure timely payments and a steady stream of income, against the possibility of attracting more cash-paying tenants by setting rents closer to the ZORI. The decision should be informed by the local rental dynamics and the landlord's risk tolerance.
Ultimately, landlords in ZIP 80210 must navigate the balance between market rates and government standards to maximize occupancy and profitability. Accepting vouchers can be a strategic move to fill units in a competitive market where many renters face affordability challenges.
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.