Location: Denver-Aurora-Centennial, CO | Metro: Denver-Aurora-Centennial, CO MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,740 |
| 1 Bedroom | $1,820 |
| 2 Bedrooms | $2,150 |
| 3 Bedrooms | $2,820 |
| 4 Bedrooms | $3,150 |
| 5 Bedrooms | $3,654 |
| 6 Bedrooms | $4,092 |
| 7 Bedrooms | $4,419 |
| 8 Bedrooms | $4,640 |
The Section 8 program in ZIP code 80248 is based on a significant financial disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $2150, while the market rent data is currently unavailable. This gap means that landlords must rely on the FMR to determine their rental pricing for Section 8 tenants.
In the absence of market rent data, we can infer that if the market rent exceeds the FMR, landlords will face a scenario where they are renting properties below the open-market rate. This can be costly because it reduces potential rental income. Conversely, if the FMR exceeds the market rent, which is the case here given the lack of market rent data, the program becomes a yield play. Landlords can secure a steady stream of rental income that is guaranteed by the government, potentially higher than what the local market might offer.
The analysis must be anchored in the broader context of Unknown, CO. With insufficient data on the percentage of renters, median home values, and median incomes, it's challenging to provide a comprehensive overview. However, the known FMR of $2150 serves as a critical benchmark for landlords and small-portfolio investors. It ensures that voucher tenants can afford housing without placing undue financial strain on property owners.
To summarize, the Section 8 program in ZIP 80248 offers landlords a reliable source of income, potentially above the current market rates. This makes it an attractive option for those looking to stabilize cash flows and avoid the volatility often associated with the rental market. The exact gap in dollars and percent cannot be calculated without the market rent figure, but the FMR stands as a clear indicator of the government's commitment to supporting affordable housing in the area.
Data Sources: FMR data from HUD (2027).
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.