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 | $1,750 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,170 |
| 3 Bedrooms | $2,850 |
| 4 Bedrooms | $3,180 |
| 5 Bedrooms | $3,689 |
| 6 Bedrooms | $4,132 |
| 7 Bedrooms | $4,463 |
| 8 Bedrooms | $4,686 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,830 | $164,567 | 1.11% | B |
| 2BR | $2,170 | $304,308 | 0.71% | D |
| 3BR | $2,850 | $523,671 | 0.54% | F |
| 4BR | $3,180 | $651,435 | 0.49% | F |
| 5BR | $3,689 | $759,342 | 0.49% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 80231, located in Denver, Colorado, does not work favorably for landlords. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $2110. However, the actual market rent, as measured by the Zillow Observed Rental Index (ZORI), stands at $1,503. This indicates that landlords might struggle to cover costs and maintain profitability at the current market rates.
Acquisition in this ZIP code is moderately affordable. The median home value is $412,617, which suggests that purchasing properties is within reach for many investors. The days on market (DOM) figure of 31 days implies that homes are selling relatively quickly once listed. Additionally, only 0.3% of listings involve price cuts, indicating a strong seller's market where homes retain their value well.
Tenant demand in ZIP 80231 is robust. With a total population of 35,883, and 60.4% of residents being renters, there is a significant pool of potential tenants. This high renter share supports the idea that finding and retaining tenants would be easier compared to areas with lower rental populations.
In summary, while the rent math currently works against landlords due to the disparity between FMR and actual market rents, the acquisition environment is favorable. Homes sell quickly and hold their value, making them a good investment. Tenant demand is strong, ensuring that properties can be occupied without difficulty. Despite the initial challenge with rental pricing, the overall conditions in ZIP 80231 support investment in rental properties, particularly for those who can manage their costs effectively.
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.