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 | $1,700 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,770 |
| 4 Bedrooms | $3,100 |
| 5 Bedrooms | $3,596 |
| 6 Bedrooms | $4,028 |
| 7 Bedrooms | $4,350 |
| 8 Bedrooms | $4,568 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,780 | $218,281 | 0.82% | C |
| 2BR | $2,110 | $337,608 | 0.62% | D |
| 3BR | $2,770 | $495,187 | 0.56% | F |
| 4BR | $3,100 | $616,967 | 0.5% | F |
| 5BR | $3,596 | $776,895 | 0.46% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 80234, Westminster, CO, stands at $92,563. Given the market rate for rent, known as ZORI (Zillow Observed Rent Index), is $1,658, it becomes evident that housing costs represent a significant portion of household budgets. This is further highlighted when comparing the market rate to the Federal Market Rate (FMR) for voucher payments, which is set at $2,160 for the fiscal year 2024.
The disparity between the market rate and the voucher payment standard means that many renters might find it challenging to cover their housing expenses without financial assistance. In Westminster, where 40.8% of the 29,356 population are renters, the affordability gap is a critical factor influencing the rental market. Landlords must consider this gap when setting their rental prices, as it directly impacts the pool of potential tenants who can afford the market rate versus those who rely on vouchers.
The competition among landlords is thus intensified by the affordability gap. Those who offer units at the market rate may struggle to attract tenants from the lower-income bracket, whereas landlords willing to accept voucher payments have a larger pool of applicants. However, accepting voucher payments comes with its own set of challenges, including administrative requirements and potentially lower rental income compared to market rates.
Takeaway: For landlords and small-portfolio investors considering strategies in ZIP 80234, understanding the dynamics of the affordability gap is crucial. While market-rate rents at $1,658 can be lucrative, the high demand for affordable housing suggests that being open to voucher tenants could be a viable strategy to ensure consistent occupancy. The FMR of $2,160 provides a benchmark for those looking to navigate the voucher system, ensuring they receive fair compensation while still making their properties accessible to a broader range of Westminster residents.
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.