Section 8 Fair Market Rent (FMR) for ZIP 80249 - 2027

Investment Score for ZIP 80249

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	$2,050
1 Bedroom	$2,140
2 Bedrooms	$2,540
3 Bedrooms	$3,330
4 Bedrooms	$3,730
5 Bedrooms	$4,327
6 Bedrooms	$4,846
7 Bedrooms	$5,234
8 Bedrooms	$5,496

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	$2,540	$384,539	0.66%	D
3BR	$3,330	$441,266	0.75%	D
4BR	$3,730	$503,695	0.74%	D
5BR	$4,327	$602,259	0.72%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80249 (Denver, CO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 80249 in Denver, Colorado, is set by HUD for 2026 as follows: - 0BR: $1950 - 1BR: $2080 - 2BR: $2480 - 3BR: $3250 - 4BR: $3620 These figures represent the maximum amount that a Section 8 voucher holder can be subsidized to pay for rent. However, comparing these figures to actual rental rates in the area reveals significant discrepancies. For instance, the Zillow median price for a 2BR property is $396,420, which translates to a monthly mortgage payment of approximately $1,750 based on a 4.5% interest rate and a 30-year fixed mortgage. This calculation does not include property taxes, insurance, and maintenance costs, which would further increase the total cost of ownership. The price-to-FMR ratio for a 2BR unit is 13.3x, indicating that the actual market value of properties far exceeds the FMR. This means that landlords who accept Section 8 vouchers will face significant financial constraints. They must either operate at a loss or find ways to supplement their income, such as through higher rents from non-voucher tenants or by increasing the number of units they manage. Given the high median household income of $100,324, it is likely that many landlords in this area can afford to charge higher rents, making it less attractive for them to participate in the Section 8 program. #### Affordability & Renter Profile ZIP code 80249 has a population of 41,590, with 25.7% of residents being renters. This indicates a moderate rental market presence, but the occupancy rate of 96.1% suggests that the market is relatively tight. With a median household income of $100,324, the majority of residents are likely able to afford market-rate rents without assistance. However, the 25.7% of renters may struggle to find affordable housing options, especially given the high price-to-FMR ratio. For context, the FMR for a 2BR unit is $2480, which represents 29.7% of the median household income. This implies that a significant portion of the population can afford to live in 2BR units without needing a voucher. However, the remaining 25.7% of renters may find it challenging to secure housing within their budget, particularly if they rely on Section 8 vouchers. The high price-to-FMR ratio of 13.3x further exacerbates the affordability issue, as it suggests that the market value of properties is much higher than what is covered by the FMR. #### Investor Angle From an investor perspective, the ZIP code 80249 presents both opportunities and challenges. The FMR for a 2BR unit is $2480, while the Zillow median price suggests a monthly mortgage payment of around $1,750. This leaves a potential gap of $730 per month between the mortgage payment and the FMR, assuming no additional expenses. However, this gap does not account for property taxes, insurance, and maintenance costs, which can significantly reduce the net cash flow. Given the high price-to-FMR ratio, the investment grade for this ZIP code is likely to be low for Section 8-focused investors. The tight rental market and the high median household income suggest that there is a strong demand for market-rate rentals, which could provide better returns than accepting Section 8 vouchers. Additionally, the limited number of voucher holders relative to the overall population makes it less viable for investors to focus solely on Section 8 properties. #### Specific Actionable Insights 1. **Focus on Market-Rate Rentals**: Given the high median household income and the tight rental market, investors should consider focusing on market-rate rentals rather than Section 8 properties. This approach would likely yield better cash flow and higher returns. 2. **Diversify Tenant Mix**: If an investor decides to accept Section 8 vouchers, they should aim to diversify their tenant mix. By having a combination of Section 8 voucher holders and market-rate tenants, they can balance the lower rents from voucher holders with higher rents from those who can afford to pay more. 3. **Consider Property Value Appreciation**: While the current price-to-FMR ratio is high, the long-term appreciation of property values in Denver, CO, could provide substantial capital gains. Investors might want to evaluate the potential for future appreciation and factor it into their investment strategy. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 80249 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it less attractive for those relying solely on Section 8 vouchers. Instead, investors should look for areas with a higher percentage of renters and a more favorable price-to-FMR ratio to ensure positive cash flow and better returns.

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.