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 | $1,640 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $2,980 |
| 5 Bedrooms | $3,457 |
| 6 Bedrooms | $3,872 |
| 7 Bedrooms | $4,182 |
| 8 Bedrooms | $4,391 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,710 | $251,759 | 0.68% | D |
| 2BR | $2,030 | $452,994 | 0.45% | F |
| 3BR | $2,660 | $823,426 | 0.32% | F |
| 4BR | $2,980 | $1,231,915 | 0.24% | F |
| 5BR | $3,457 | $1,690,416 | 0.2% | F |
U.S. Census Bureau data (2024)
The ZIP code 80218 in Denver, CO, is characterized by a strong renter population. With 67.0% of residents being renters, this area stands out as a renter-heavy zone. The median household income is $81,706, which is notably higher than the national average, indicating a relatively affluent neighborhood. However, the market rent of $1,466 per month consumes a significant portion of the average resident's income.
To put this into perspective, the typical rent in 80218 eats up approximately 18% of the median household income. This percentage is calculated by dividing the monthly rent by the annual income and multiplying by 12. Given that the Fair Market Rent (FMR) for FY 2024 in this ZIP code is set at $2050, it suggests that the actual market rent is below the FMR, potentially making it an attractive location for tenants seeking affordable housing options.
The disparity between the FMR and the actual market rent highlights a strong demand for rental properties, especially those that accept Section 8 vouchers. Landlords in 80218 can expect a high volume of applications from tenants looking to leverage their vouchers to find suitable accommodation. These tenants are likely to be cost-conscious and prioritize affordability over luxury features, given the difference between the FMR and the actual rent they might pay.
In conclusion, 80218 is a renter-heavy ZIP code with a substantial demand for Section 8 vouchers. The median income supports a healthy rental market, but the actual rents are lower than the FMR, indicating that landlords should prepare for a tenant pool that is primarily focused on securing affordable housing. This makes the area ideal for landlords who are willing to work with voucher programs and offer competitive rates to attract tenants.
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.