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 | $1,490 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,580 | $149,405 | 1.06% | B |
| 2BR | $1,890 | $280,157 | 0.67% | D |
| 3BR | $2,470 | $422,154 | 0.59% | F |
| 4BR | $2,750 | $489,957 | 0.56% | F |
| 5BR | $3,190 | $515,685 | 0.62% | D |
U.S. Census Bureau data (2024)
The ZIP code 80260, located in Federal Heights, Colorado, presents a dynamic rental market. The Fair Market Rent (FMR) for the area, set at $1740 for fiscal year 2024, aligns closely with the actual market rent, known as the Zillow Observed Rent Index (ZORI), which stands at $1,495. This suggests that the rental market is relatively stable and reflective of broader economic conditions.
A key indicator of market health is the price-cut share, which is currently at 0.3%. This low percentage implies that few properties are being discounted, indicating strong demand relative to supply. Additionally, the days on market (DOM) figure of 23 days supports this notion, showing that homes are moving quickly once they come onto the market. These factors suggest that demand is robust and likely exceeds supply, making it a seller's market.
The median home value in 80260 is $403,812. This value provides context for the overall cost of living and property investment in the area. Given the high median home value and the fact that a significant portion of residents—37.6%—are renters, there is an inherent long-term housing pressure. This percentage indicates a substantial number of people who prefer or need to rent rather than buy, which could be due to affordability concerns or lifestyle choices.
The high proportion of renters also signals potential for sustained rental demand. As long-term renters often remain in the rental market, this demographic characteristic suggests that the rental sector will continue to be active and potentially lucrative for landlords and small-portfolio investors. However, the dynamics between renters and homeowners can influence local real estate values and rental rates, creating a market that is always in motion, adapting to changes in both supply and demand.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.