Section 8 Fair Market Rent (FMR) for ZIP 80229 - 2027

Investment Score for ZIP 80229

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,690
1 Bedroom	$1,760
2 Bedrooms	$2,090
3 Bedrooms	$2,740
4 Bedrooms	$3,070
5 Bedrooms	$3,561
6 Bedrooms	$3,988
7 Bedrooms	$4,307
8 Bedrooms	$4,522

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,760	$232,806	0.76%	D
2BR	$2,090	$324,278	0.64%	D
3BR	$2,740	$420,974	0.65%	D
4BR	$3,070	$480,697	0.64%	D
5BR	$3,561	$505,416	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80229 (Thornton, CO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 80229 is set by HUD for 2026. For a two-bedroom unit, the FMR is $2,130, which represents 30.4% of the median household income of $84,203. This suggests that a significant portion of the population can afford housing at the FMR level. However, the actual rental market in Thornton is considerably higher. The Zillow median price for a two-bedroom unit is $329,043, which translates into a monthly rent of approximately $1,290 if we assume a 4% cap rate. Given the Price-to-FMR ratio of 12.9x, it is clear that the actual rental prices are much higher than the FMR. For instance, a typical two-bedroom unit might cost around $1,800 per month, which is significantly above the FMR of $2,130. This means that tenants with Section 8 vouchers face a challenge in finding units that landlords will accept at the FMR. #### Affordability & Renter Profile In ZIP code 80229, 34.3% of the population are renters, indicating a substantial demand for rental properties. With a median household income of $84,203, the average renter would have a monthly income of roughly $7,017. At 30.4% of this income, the FMR of $2,130 is affordable for many residents. However, the high actual rental prices suggest that the market is tight, with limited options available at or below the FMR. The occupancy rate of 96.5% further supports the notion that there is little vacancy, making it a competitive market for both renters and landlords. #### Investor Angle From an investor perspective, the ZIP code 80229 presents a mixed picture. The median home value of $329,043 implies a strong appreciation potential, but the high actual rental rates compared to the FMR suggest that cash flow could be challenging if relying solely on Section 8 vouchers. If a landlord accepts a Section 8 voucher for a two-bedroom unit at $2,130, they would still be below the market rate of around $1,800, which is already higher than the FMR. This indicates that landlords who accept Section 8 vouchers might struggle to cover their mortgage payments and operating costs unless they are able to secure additional subsidies or have lower-than-average financing costs. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high actual rental rates for larger units, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1,790, which is closer to the actual rental market rate. This could provide a better balance between affordability and market competitiveness. 2. **Seek Additional Subsidies**: Investors looking to operate in the Section 8 market should explore additional subsidies and programs that can help bridge the gap between the FMR and the actual rental costs. This could include state-level assistance programs or partnerships with local non-profits that support low-income housing. 3. **Consider Location-Specific Strategies**: Within ZIP code 80229, certain neighborhoods might offer more affordable rental options due to differences in property values and rental rates. Conducting a detailed neighborhood analysis could reveal areas where the actual rental prices are closer to the FMR, providing better opportunities for cash flow. #### Bottom Line For Section 8-focused investors, ZIP code 80229 presents a challenging environment due to the high actual rental rates compared to the FMR. While the appreciation potential is strong, the cash flow dynamics are less favorable. Therefore, the recommendation is to **Skip** this ZIP code unless you can secure additional subsidies or focus on smaller units where the FMR is closer to market rates. If you decide to invest, ensure you conduct thorough due diligence on location-specific strategies and consider alternative sources of income to supplement the Section 8 voucher payments.

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.