Section 8 Fair Market Rent (FMR) for ZIP 80239 - 2027

Investment Score for ZIP 80239

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	$1,860
1 Bedroom	$1,950
2 Bedrooms	$2,310
3 Bedrooms	$3,030
4 Bedrooms	$3,390
5 Bedrooms	$3,932
6 Bedrooms	$4,404
7 Bedrooms	$4,756
8 Bedrooms	$4,994

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	$2,310	$361,085	0.64%	D
3BR	$3,030	$415,627	0.73%	D
4BR	$3,390	$450,548	0.75%	D
5BR	$3,932	$464,216	0.85%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80239 (Denver, CO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 80239 is set by HUD for 2026 as follows: - 0BR: $1720 - 1BR: $1840 - 2BR: $2190 (which is 26.8% of the median household income of $98,148) - 3BR: $2870 - 4BR: $3200 These figures represent the maximum rent that a Section 8 voucher holder can pay for a unit of a given size. However, it is important to note that the actual rents in the area may be significantly higher. For instance, the Zillow median price for a 2BR property in this ZIP code is $372,187, which translates to a monthly mortgage payment of approximately $1,940 based on a 4.5% interest rate over a 30-year term. This does not include property taxes, insurance, and maintenance costs, which would further increase the total cost. The price-to-FMR ratio for a 2BR unit is 14.2x, indicating that the actual market rent is likely much higher than the FMR. Given these dynamics, Section 8 voucher holders face significant constraints in finding affordable housing. They must locate units that do not exceed the FMR limits, which can be challenging in a market where rents are so high. This could lead to a concentration of voucher holders in lower-cost units, potentially limiting their options to certain neighborhoods or types of properties. #### Affordability & Renter Profile ZIP code 80239 has a population of 44,956, with 40.0% of residents being renters. The occupancy rate is 96.2%, suggesting a relatively tight rental market. Given the median household income of $98,148, the affordability of housing is a critical issue for many residents. The median rent for a 2BR unit at $2190 represents only 26.8% of the median income, which is a relatively low percentage compared to the national average. However, the high price-to-FMR ratio indicates that the actual rents are likely well above this figure. This suggests that while the FMR is set at a level that is theoretically affordable, the reality is that many residents may struggle to find housing within their budget. The renter profile in this ZIP code is likely diverse, including young professionals, families, and individuals who may be employed but still rely on rental assistance due to the high cost of living. The tight market conditions mean that there is little excess supply, and competition for units is likely strong, particularly among those who are not able to afford market rates. #### Investor Angle From an investor perspective, the ZIP code 80239 presents both opportunities and challenges. The FMR for a 2BR unit is $2190, but the actual market rent is likely much higher, given the price-to-FMR ratio of 14.2x. This means that if an investor can secure a property at or near the FMR, they could potentially achieve positive cash flow. However, the challenge lies in finding such properties, as the high market rents suggest that most units will be priced above the FMR. To assess the investment grade, we need to consider the potential for vacancy and the likelihood of finding tenants willing to pay the FMR. With an occupancy rate of 96.2%, the risk of vacancy is relatively low, but the competition for tenants who can pay the FMR is likely high. Investors should also factor in the potential for regulatory changes or market fluctuations that could impact the FMR and the demand for subsidized housing. #### Specific Actionable Insights 1. **Focus on Lower-Cost Units**: Given the high price-to-FMR ratio, investors should focus on acquiring lower-cost units that are closer to the FMR. For example, a 2BR unit at $2190 per month would be ideal for attracting Section 8 voucher holders. This strategy could help mitigate the risk of vacancy and ensure a steady stream of income. 2. **Consider Renovations and Upgrades**: If an investor acquires a property below the FMR, they might consider making renovations or upgrades to increase its value without exceeding the FMR limit. This could include minor improvements like painting, updating fixtures, or adding energy-efficient appliances, which could make the property more attractive to voucher holders without increasing the rent beyond the allowable amount. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide valuable insights into the availability of vouchers and the preferences of voucher holders. This can help investors tailor their offerings to meet the needs of this demographic and improve their chances of securing long-term tenants. #### Bottom Line For Section 8-focused investors, ZIP code 80239 presents a mixed picture. While the high occupancy rate and strong demand for rental housing are positive indicators, the high price-to-FMR ratio suggests that finding properties at or near the FMR will be challenging. Therefore, the recommendation is to **Hold** on existing investments in this ZIP code if they are already at or near the FMR, and **Skip** new acquisitions unless they can be secured at a price that allows for positive cash flow at the FMR. Investors should carefully evaluate the potential for renovations and upgrades to enhance the attractiveness of their properties without exceeding the FMR limits.

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.