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 | $1,850 |
| 1 Bedroom | $1,930 |
| 2 Bedrooms | $2,290 |
| 3 Bedrooms | $3,000 |
| 4 Bedrooms | $3,360 |
| 5 Bedrooms | $3,898 |
| 6 Bedrooms | $4,366 |
| 7 Bedrooms | $4,715 |
| 8 Bedrooms | $4,951 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,930 | $280,667 | 0.69% | D |
| 2BR | $2,290 | $322,645 | 0.71% | D |
| 3BR | $3,000 | $376,339 | 0.8% | D |
| 4BR | $3,360 | $424,582 | 0.79% | D |
U.S. Census Bureau data (2024)
The ZIP code 80216 in Denver, CO stands out due to its unique demographic and economic characteristics. With a population of 17,330 residents, it boasts a significant rental market share of 74.5%, making it an attractive area for landlords. The median income in the region is $82,143, which indicates a relatively affluent community. However, the median home value is notably high at $359,354, suggesting that homeownership is less common and often beyond the reach of many residents.
For landlords and small-portfolio investors interested in Section 8 housing, the economics are compelling. The Fair Market Rent (FMR) for ZIP 80216 for fiscal year 2024 is set at $2,300, while the Zillow Observed Rent Index (ZORI) stands at $1,874. This means that landlords participating in the Section 8 program can expect higher rents compared to the average market rates, providing a financial advantage.
The data signature for ZIP 80216 reads as stable. A high percentage of renters combined with a robust median income suggests a consistent demand for rental properties. Additionally, the disparity between the FMR and the ZORI indicates a favorable environment for Section 8 vouchers, as the government's rental subsidy rate exceeds the local market rent. This stability is further reinforced by the high median home value, implying that the majority of residents rely on rentals, thus maintaining a steady tenant base.
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.