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 | $1,780 |
| 1 Bedroom | $1,870 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,900 |
| 4 Bedrooms | $3,240 |
| 5 Bedrooms | $3,758 |
| 6 Bedrooms | $4,209 |
| 7 Bedrooms | $4,546 |
| 8 Bedrooms | $4,773 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,870 | $203,974 | 0.92% | C |
| 2BR | $2,210 | $335,304 | 0.66% | D |
| 3BR | $2,900 | $604,294 | 0.48% | F |
| 4BR | $3,240 | $925,312 | 0.35% | F |
| 5BR | $3,758 | $2,116,413 | 0.18% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 80246 in Denver, Colorado, reveals several key points for landlords and small-portfolio investors.
The rent math does not work favorably for landlords. The Fair Market Rent (FMR) set at $2170 for FY 2024 is significantly higher than the actual market rent, which stands at $1,360. This disparity means that landlords may struggle to find tenants willing to pay the FMR, leading to potential vacancies.
Acquisition in this area is moderately affordable. With a median home value of $575,388, it presents a realistic entry point for investors. However, the lack of available data on days on market (DOM) and the fact that only 0.3% of homes are listed with a price cut suggest that competition for properties could be fierce, making negotiations challenging.
Tenant demand is strong in ZIP 80246. The population of 13,097 residents, combined with an 80.1% renter share, indicates a robust pool of potential tenants. This high percentage of renters suggests a steady stream of demand for rental properties, which can help ensure occupancy rates remain high.
In conclusion, while the rent math in ZIP 80246 is not ideal due to the substantial gap between FMR and actual market rents, the strong tenant demand provides a solid foundation for investment. Acquiring properties at a median value of $575,388 requires careful consideration given the competitive market conditions. Despite the challenges, the high renter share makes this ZIP code a viable option for investors looking to capitalize on consistent demand for rental housing.
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.