Section 8 Fair Market Rent (FMR) for ZIP 80233 - 2027

Investment Score for ZIP 80233

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	$1,820
1 Bedroom	$1,900
2 Bedrooms	$2,250
3 Bedrooms	$2,950
4 Bedrooms	$3,300
5 Bedrooms	$3,828
6 Bedrooms	$4,287
7 Bedrooms	$4,630
8 Bedrooms	$4,862

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,250	$391,611	0.57%	F
3BR	$2,950	$452,162	0.65%	D
4BR	$3,300	$488,573	0.68%	D
5BR	$3,828	$507,720	0.75%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80233 (Thornton, CO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 80233 in Thornton, Colorado, is set by HUD for 2026 as follows: - 0BR: $1740 - 1BR: $1860 - 2BR: $2210 - 3BR: $2890 - 4BR: $3230 To understand how these figures compare to actual rents, we can look at the Zillow median price for a 2BR unit, which is $400,444. The price-to-FMR ratio for a 2BR unit is 15.1x, indicating that the median home value is significantly higher than the FMR. This suggests that actual rental rates could be higher than the FMR, especially for properties that are owner-occupied and then converted into rentals. For voucher holders, the primary constraint is that landlords must accept the voucher amount, which is capped at the FMR. If actual rents exceed the FMR, voucher holders may struggle to find suitable housing. For instance, a 2BR unit priced at $2210 per month would be at the FMR limit, while units priced above this amount would not be covered by the voucher. #### Affordability & Renter Profile ZIP code 80233 has a population of 48,441, with 37.9% of residents being renters. The occupancy rate stands at 97.3%, suggesting a relatively tight rental market where demand meets supply closely. Given the median household income of $88,880, the affordability of a 2BR unit at $2210 per month is 29.8% of the median income. This indicates that a significant portion of the population can afford to rent a 2BR unit without financial strain. However, the high price-to-FMR ratio of 15.1x implies that many properties are likely priced well above the FMR, making it challenging for low-income households to find affordable housing. #### Investor Angle From an investor perspective, the ZIP code 80233 presents a mixed picture. The Zillow median price for a 2BR unit is $400,444, which is quite high compared to the FMR of $2210. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental yields and expenses associated with owning a property. Assuming a conservative rental yield of 5% on the median home value, the expected monthly rental income would be approximately $1668 ($400,444 * 0.05 / 12). This figure is below the FMR for a 2BR unit, which is $2210. Therefore, if an investor purchases a property at the median home value and rents it out at the FMR, they would have a positive cash flow. However, this assumes that the investor can secure a tenant willing to pay the FMR, which might be challenging given the high median home values. The investment grade for this ZIP code can be assessed based on the occupancy rate and the proportion of renters who can afford the FMR. With an occupancy rate of 97.3%, there is strong demand for rental properties, but the high price-to-FMR ratio suggests that the market is skewed towards higher-end properties. Investors should focus on properties that are priced closer to the FMR to ensure better cash flow and occupancy rates. #### Specific Actionable Insights 1. **Focus on Properties Below Median Home Value**: Given the high median home value of $400,444, investors should target properties priced below this level. A 2BR unit priced at $2210 per month would be ideal, as it aligns with the FMR and ensures positive cash flow. 2. **Consider Smaller Units**: The FMR for smaller units (0BR and 1BR) is lower, at $1740 and $1860 respectively. Investing in smaller units could provide better returns due to the lower purchase price and still be within the FMR limits for voucher holders. 3. **Target Affordable Neighborhoods Within 80233**: While the overall median home value is high, there may be pockets within the ZIP code where properties are more affordable. Investors should conduct thorough neighborhood analysis to identify areas where the median home value is closer to the FMR. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 80233 is **Hold**. The high median home value and the tight rental market make it challenging to find properties that are both affordable and within the FMR limits. However, there is potential for positive cash flow if investors can secure properties priced below the median home value and within the FMR range. Investors should carefully evaluate the local market dynamics and consider targeting smaller units or neighborhoods with lower median home values to maximize their returns.

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.