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 | $1,600 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,600 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,670 | $229,180 | 0.73% | D |
| 2BR | $1,980 | $298,608 | 0.66% | D |
| 3BR | $2,600 | $578,121 | 0.45% | F |
| 4BR | $2,910 | $708,213 | 0.41% | F |
| 5BR | $3,376 | $803,267 | 0.42% | F |
U.S. Census Bureau data (2024)
In ZIP 80224 of Denver, CO, the real estate market presents a nuanced picture that both landlords and small-portfolio investors should consider. The median home value stands at $559,955, indicating a relatively stable housing price environment. This stability is further supported by the fact that only 0.3% of listings have been reduced in price, suggesting that sellers maintain strong pricing power. Additionally, the 14-day median days on market (DOM) reflects quick sales, which is a positive sign for the market's health and demand.
The combination of these factors signals a robust seller's market where pricing power remains firmly in the hands of property owners. Landlords can expect to see steady rental income from their investments, given the strong underlying demand for housing in the area. Small-portfolio investors looking to hold properties long-term can anticipate continued stability in property values, though rapid appreciation is unlikely due to the already high median home value and limited price reductions.
On the rental side, the Fair Market Rent (FMR) for ZIP 80224 is set at $2030 for fiscal year 2024, while the actual market rent (ZORI) is currently $1,580. This discrepancy suggests an opportunity for landlords to potentially increase rents, aligning more closely with the FMR, without significantly impacting occupancy rates. However, it also highlights a potential risk if market conditions shift and tenants become more sensitive to higher rents.
For long-hold investors, the realistic appreciation thesis is based on maintaining current property values rather than expecting significant growth. The low percentage of price reductions and quick sales indicate a market where property values are likely to remain stable, providing a solid foundation for long-term investment strategies. While there is no immediate signal for substantial appreciation, the ongoing demand for rental properties at or near ZORI levels supports a conservative approach to property management and investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.