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 | $1,610 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,690 | $195,641 | 0.86% | C |
| 2BR | $2,000 | $356,060 | 0.56% | F |
| 3BR | $2,620 | $509,867 | 0.51% | F |
| 4BR | $2,930 | $557,467 | 0.53% | F |
| 5BR | $3,399 | $578,042 | 0.59% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 80232 in Lakewood, Colorado, for fiscal year 2024 is set at $2,040. This figure represents the maximum amount that a landlord can receive from the government under the Section 8 program, which is not necessarily the same as the rent you charge tenants. It's important to understand that this is a payment standard designed to cover a portion of your rental income, not the total rent.
In comparison, the local Zillow Observed Rental Index (ZORI) stands at $1,619. This indicates the average market rent for similar properties in the area. Given that the FMR is higher than the ZORI, it suggests that participating in Section 8 could potentially offer a better financial outcome compared to the typical market rates.
The renter share in this area is 27.3%, meaning that on average, renters in ZIP 80232 spend about 27.3% of their income on housing. This percentage reflects a strong demand for affordable housing options, making Section 8 a viable choice for landlords looking to fill vacancies.
If you're considering acquiring a property to use as a Section 8 rental, the median home value in the area is approximately $535,175. This gives you an idea of the initial investment required to enter the market. Keep in mind that the actual purchase price may vary depending on the condition and location of the property.
Before committing to a Section 8 rental, verify that the property meets the Housing Quality Standards (HQS). These standards ensure that the property is safe and habitable, and passing this inspection is a prerequisite for participation in the program. Failure to meet these standards can delay your ability to participate and generate income through the program.
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.