Section 8 Fair Market Rent (FMR) for ZIP 80215 - 2027

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

Investment Score for ZIP 80215

Monthly Rent (2BR)

$2,020

Median Price (2BR)

$417,219

1% Rule

0.48%

Annual Yield

5.81%

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	$1,630
1 Bedroom	$1,710
2 Bedrooms	$2,020
3 Bedrooms	$2,650
4 Bedrooms	$2,960
5 Bedrooms	$3,434
6 Bedrooms	$3,846
7 Bedrooms	$4,154
8 Bedrooms	$4,362

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,710	$272,700	0.63%	D
2BR	$2,020	$417,219	0.48%	F
3BR	$2,650	$644,382	0.41%	F
4BR	$2,960	$800,607	0.37%	F
5BR	$3,434	$933,144	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

19,839

Median Household Income

$85,190

Housing Units

9,231

Renter Percentage

42.8%

Occupancy Rate

94.5%

Renter Occupied

3,732

To determine if you should buy in ZIP 80215 (Lakewood, CO) for Section 8 investment, follow this decision tree based on the provided data.

Step 1: Does the Fair Market Rent (FMR) of $2070 for FY 2024 cover the debt service on a property priced at $679,677?

No: The FMR does not cover the debt service on a property of that value. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the high property price, the likelihood is that the FMR will fall short, making it unfeasible for a Section 8 investment without additional income sources.

Step 2: Is the market rent ($1,757 ZORI) above, at, or below the FMR?

Below: The ZORI is lower than the FMR, indicating that market rents are below what the government considers fair for Section 8 tenants. This suggests a potentially better return on investment for Section 8 properties compared to market-rate rentals, but also implies lower demand for market-rate units.

Step 3: Are 42.8% of residents renters and does the 16-day Days on Market (DOM) indicate sufficient demand?

Yes: With 42.8% of residents being renters and an average DOM of 16 days, there is strong demand for rental properties in Lakewood. This bodes well for both market-rate and Section 8 properties, ensuring quick occupancy and stable cash flow.

If your answer to Step 1 is No, then investing in ZIP 80215 for Section 8 purposes is not advisable unless you can secure a lower-priced property or have other revenue streams. For Steps 2 and 3, the combination of market rent being below FMR and strong rental demand supports a positive outlook for Section 8 investments in this area.

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.