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 | $1,680 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,080 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,050 |
| 5 Bedrooms | $3,538 |
| 6 Bedrooms | $3,963 |
| 7 Bedrooms | $4,280 |
| 8 Bedrooms | $4,494 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,760 | $160,917 | 1.09% | B |
| 2BR | $2,080 | $241,214 | 0.86% | C |
| 3BR | $2,730 | $469,050 | 0.58% | F |
| 4BR | $3,050 | $574,256 | 0.53% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 80247 under the Section 8 program are significant and must be carefully considered. Tenant turnover poses a notable risk due to the disparity between the market rent of $1,800 and the Fair Market Rent (FMR) of $2,090 for FY 2024. Landlords may struggle to attract tenants willing to pay the higher FMR, leading to frequent turnover and associated costs.
Vacancy exposure is another concern, given that homes typically take 60 days to sell on the market (DOM). This extended period can result in significant financial strain, especially when combined with the deferred maintenance costs. With a typical home value of $262,380 and a median income of $64,498, many residents might find it challenging to afford necessary repairs, increasing the likelihood of deferred maintenance issues that could affect property value and appeal.
However, these risks are balanced by the high renter share in the area, which stands at 59.4%. High renter density often correlates with a robust demand for housing vouchers, providing a stable tenant pool for Section 8 landlords. The concentration of renters also suggests a competitive market where landlords can leverage their properties to attract voucher holders.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 80247 makes it a moderate risk for a first-time Section 8 landlord. The area's characteristics create both opportunities and obstacles that require careful management but offer a solid foundation for rental investments.
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.