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 | $1,530 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,600 | $285,123 | 0.56% | F |
| 2BR | $1,900 | $436,373 | 0.44% | F |
| 3BR | $2,490 | $585,446 | 0.43% | F |
| 4BR | $2,790 | $685,136 | 0.41% | F |
| 5BR | $3,236 | $804,921 | 0.4% | F |
U.S. Census Bureau data (2024)
The ZIP code 80214, located in Lakewood, Colorado, presents an interesting scenario for both renters and landlords. The median household income in this area stands at $75,575. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is $1,648 per month. This figure represents a significant portion of the average household's monthly earnings, making it challenging for residents to find affordable housing without assistance.
When comparing the market rate to the Federal Market Rent (FMR) standard for Section 8 vouchers, which is set at $1,790 for the fiscal year 2024, the disparity becomes even clearer. The voucher payment is slightly above the market rate, indicating that landlords who accept vouchers might have a slight advantage in terms of rental income stability over those who rely solely on cash-paying tenants.
With 60.1% of the 27,022 population being renters, the competition among landlords is fierce. Many properties are likely to be occupied by tenants using some form of rental assistance, including Section 8 vouchers. The affordability gap means that a substantial number of potential renters cannot cover the market rate without financial aid, driving up demand for subsidized housing options.
The takeaway for landlords considering their strategy in ZIP 80214 is that accepting Section 8 vouchers can be a viable option. Given that the voucher amount is close to the market rate and the high percentage of renters, there is a strong likelihood that voucher holders will outnumber cash-paying tenants who can afford the ZORI without assistance. Therefore, landlords should weigh the benefits of steady, government-backed payments against the perceived drawbacks of voucher programs.
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.