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 | $1,860 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $3,020 |
| 4 Bedrooms | $3,370 |
| 5 Bedrooms | $3,909 |
| 6 Bedrooms | $4,378 |
| 7 Bedrooms | $4,728 |
| 8 Bedrooms | $4,964 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,940 | $227,093 | 0.85% | C |
| 2BR | $2,300 | $311,108 | 0.74% | D |
| 3BR | $3,020 | $615,543 | 0.49% | F |
| 4BR | $3,370 | $713,184 | 0.47% | F |
| 5BR | $3,909 | $789,460 | 0.5% | F |
U.S. Census Bureau data (2024)
ZIP code 80228, located in Lakewood, CO, falls within the Denver-Aurora-Centennial, CO Metropolitan Statistical Area (MSA). The Fair Market Rent (FMR) for ZIP 80228 in fiscal year 2024 is set at $2200. This figure represents the maximum amount that a low-income household should pay for housing in order to have enough left over for other basic needs.
In comparison to typical ZIP codes within the Denver-Aurora-Centennial MSA, ZIP 80228 stands out in several ways. Its market rent of $1,773 is notably lower than the FMR, suggesting that it could be considered a value pocket within the larger metro area. Value pockets are areas where rental prices are relatively affordable compared to surrounding regions, making them attractive to both tenants and investors looking for cost-effective opportunities.
The median home value in ZIP 80228 is $655,310, which is on par with or slightly above the average home value seen in many other ZIP codes within the Denver-Aurora-Centennial MSA. This indicates that while the rental market may offer some savings, homeownership remains a significant investment in this area.
With a renter share of 32.7%, ZIP 80228 has a higher proportion of renters compared to some other ZIP codes within the MSA. This high renter share combined with below-average market rents can signal an opportunity for landlords and small-portfolio investors interested in properties eligible for Section 8 subsidies. However, the home value being relatively high suggests that this area is not necessarily a low-cost option for all types of real estate investments.
To summarize, ZIP 80228 appears to be a value pocket for rental investments within the Denver-Aurora-Centennial MSA. It offers below-average market rents compared to the FMR, making it a favorable location for landlords seeking to attract Section 8 households. The high renter share further supports this inference, though the overall home values remain competitive with the rest of the metro area.
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.