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 | $1,660 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $3,020 |
| 5 Bedrooms | $3,503 |
| 6 Bedrooms | $3,923 |
| 7 Bedrooms | $4,237 |
| 8 Bedrooms | $4,449 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,740 | $154,790 | 1.12% | B |
| 2BR | $2,060 | $388,624 | 0.53% | F |
| 3BR | $2,700 | $492,420 | 0.55% | F |
| 4BR | $3,020 | $570,213 | 0.53% | F |
| 5BR | $3,503 | $587,087 | 0.6% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 80236, located in Denver, Colorado, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $2040, while the market rent, as measured by the Zillow Rent Index (ZORI), is $2016. This means the FMR is $24 higher than the market rent, representing a 1.19% premium.
In this context, landlords and small-portfolio investors should consider that voucher tenants provide a stable and reliable source of income. The premium of $24 per unit suggests that the Section 8 program offers a slightly better rental rate than what the open market currently provides. This makes it a favorable option for yield-focused investments. Additionally, the high percentage of renters in Denver, standing at 40.4%, indicates a strong demand for rental housing, which can be met through Section 8 properties.
The median home value in Denver is $519,834, and the median income is $86,115. These figures highlight the affordability challenges faced by many residents, making Section 8 vouchers an essential part of the rental market. By accepting voucher tenants, landlords can tap into a segment of the population that might otherwise struggle to find suitable housing. Furthermore, the stability of government-backed rental payments can outweigh the lower rates compared to the open market, especially given the current FMR premium.
While the FMR is only slightly above the market rent, it still represents a valuable opportunity for investors looking to capitalize on the consistent cash flow provided by voucher tenants. This is particularly true in an area where a significant portion of the population relies on rental housing. In conclusion, the slight premium of $24 on FMR over market rent in ZIP 80236, combined with the broader economic context of Denver, positions Section 8 properties as a solid investment choice for yield-focused strategies.
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.