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 | $1,610 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,690 | $329,964 | 0.51% | F |
| 2BR | $2,000 | $395,156 | 0.51% | F |
| 3BR | $2,620 | $444,378 | 0.59% | F |
| 4BR | $2,930 | $480,915 | 0.61% | D |
| 5BR | $3,399 | $487,186 | 0.7% | D |
U.S. Census Bureau data (2024)
The ZIP code 80221 is located in Denver, Colorado, representing a diverse and vibrant urban neighborhood. With a total population of 39,718, it has a substantial rental market, with 29.5% of residents being renters. The median household income here stands at $86,810, indicating a relatively affluent area. The median home value is notably high at $456,444, reflecting the strong real estate market and desirability of the location.
In terms of rental economics, the Fair Market Rent (FMR) for ZIP 80221 for fiscal year 2024 is set at $1,770. This figure contrasts sharply with the actual market rent, which according to Zillow's ZORI index, averages $2,185. This discrepancy suggests a robust opportunity for landlords who can manage properties efficiently to capture the difference between government-subsidized rents and market rates.
Given these conditions, ZIP 80221 is suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of Section 8 rents provides a predictable income stream, though it will not fully cover the higher market rents. However, the strong demand for rentals ensures a steady occupancy rate, making it a reliable investment choice. On the other hand, hands-on investors looking to maximize returns can find opportunities to improve property values and increase market rents above the FMR, leveraging the neighborhood's high median income and desirable location. These investors might focus on upgrading units to command premium rents, or on managing properties to minimize vacancy and maintenance costs.
The high median income and strong rental market indicate a neighborhood where residents have the means to pay market rents, but also where a significant portion of the population relies on subsidized housing options. This mix presents a balanced environment for real estate investments, catering to both government-assisted tenants and those willing to pay premium rates.
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.