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 | $1,710 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,120 |
| 3 Bedrooms | $2,780 |
| 4 Bedrooms | $3,110 |
| 5 Bedrooms | $3,608 |
| 6 Bedrooms | $4,041 |
| 7 Bedrooms | $4,364 |
| 8 Bedrooms | $4,582 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,790 | $344,493 | 0.52% | F |
| 2BR | $2,120 | $404,280 | 0.52% | F |
| 3BR | $2,780 | $455,768 | 0.61% | D |
| 4BR | $3,110 | $544,135 | 0.57% | F |
| 5BR | $3,608 | $595,819 | 0.61% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 80223, located in Denver, Colorado, involve understanding the SAFMR (Small Area Fair Market Rent) and how it compares to the local market rent. For a two-bedroom apartment in this ZIP code, the SAFMR for FY 2024 is set at $2100. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent. However, local market rents, as measured by ZORI (Zillow Observed Rent Index), stand at $1791.
A landlord participating in the Section 8 program should know that the reimbursement comes from two primary sources: the government voucher payment and the tenant's contribution. The tenant is typically required to pay 30% of their adjusted income toward rent. If we assume an average adjusted income for a tenant in this area, they would contribute around $537 to the monthly rent ($1791 * 0.30).
This means the total rent collected from a tenant with a voucher would be the sum of the government voucher payment and the tenant's contribution. In ZIP 80223, the government would pay up to $2100, while the tenant contributes $537, totaling $2637 per month. Additionally, there are utility allowances which can vary but generally add another $300-$400 to the reimbursement, bringing the total potential reimbursement closer to $3000.
Note that the SAFMR of $2100 is specifically set for this ZIP code, reflecting the unique economic conditions of the area. Landlords must ensure that their rental units meet the housing quality standards set by the local Public Housing Agency (PHA) and that the rent does not exceed the established SAFMR.
In ZIP 80223, landlords might find themselves with a surplus when comparing the SAFMR to the local market rent. With a market rent of $1791 and a SAFMR of $2100, the typical reimbursement for a two-bedroom unit exceeds the market rent by $309. This surplus provides landlords with a buffer against potential maintenance costs or vacancies.
To summarize, in ZIP 80223, landlords can expect a voucher to cover up to $2100 of the rent, with the tenant contributing approximately $537 based on the local market rate. When utility allowances are factored in, the total reimbursement can reach up to $3000. Given the local market rent of $1791, landlords participating in Section 8 will likely see a surplus of $309 per month for a two-bedroom unit.
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.