Section 8 Fair Market Rent (FMR) for ZIP 80265 - 2027

FY 2027 Fair Market Rent Rates

The analysis for ZIP code 80265 in Colorado reveals limited data points necessary for a comprehensive Section 8 cap-rate assessment. The annualized Fair Market Rent (FMR) for a two-bedroom unit in fiscal year 2024 is set at $2150. However, without the median home value, it's challenging to derive an exact cap rate.

To illustrate the potential gross yield, we can consider the FMR as a proxy for rental income. Assuming a property generates $2150 per month from Section 8 tenants, the annual rental income would be $25,800. If we hypothetically assign a median home value, say $300,000, the implied gross yield would be approximately 8.6% ($25,800 / $300,000).

In contrast, the lack of market rent data for ZIP 80265 prevents us from making a direct comparison between Section 8 rates and market rates. Typically, market rents can vary widely and might offer a higher gross yield depending on local demand and property conditions.

The absence of renter density and days on market (DOM) data further complicates the analysis. Renter density and DOM are critical indicators for understanding the market dynamics and tenant acquisition speed, which directly impact the feasibility and profitability of Section 8 properties.

Given the available data, the scenario using the FMR provides a concrete gross yield figure. While this figure alone does not represent the entire investment picture, it offers a starting point for evaluating the potential returns from Section 8 tenancy. For a complete analysis, investors should gather additional data on median home values, market rents, and local real estate trends.

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.