Location: Denver-Aurora-Centennial, CO | Metro: Boulder, 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 | $1,580 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $2,120 |
| 3 Bedrooms | $2,820 |
| 4 Bedrooms | $3,280 |
| 5 Bedrooms | $3,805 |
| 6 Bedrooms | $4,262 |
| 7 Bedrooms | $4,603 |
| 8 Bedrooms | $4,833 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,810 | $305,627 | 0.59% | F |
| 2BR | $2,120 | $459,515 | 0.46% | F |
| 3BR | $2,820 | $869,799 | 0.32% | F |
| 4BR | $3,280 | $1,208,441 | 0.27% | F |
| 5BR | $3,805 | $1,518,199 | 0.25% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 80303, located in Boulder, CO, and Boulder County, revolve around the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $2260 per month for the fiscal year 2024. This SAFMR figure is specifically tailored for this ZIP code, reflecting the unique rental market conditions within it.
In contrast, the local market rent for a similar two-bedroom unit is slightly higher at $2487 per month, as indicated by ZORI (Zillow Observed Rent Index). This means that landlords in ZIP 80303 can expect a difference between the market rent and the SAFMR, which they must consider when deciding whether to participate in the Section 8 program.
A voucher holder under the Section 8 program will typically pay 30% of their adjusted income toward rent. For a two-bedroom unit priced at the SAFMR of $2260, the tenant's contribution would be calculated based on this amount. Utility allowances are also factored into the overall payment structure, but these vary depending on the size of the unit and the specific circumstances of the tenant.
To illustrate, if a tenant's adjusted income is $1500 per month, their portion of the rent would be $450 (30% of $1500). The remaining balance, up to the SAFMR of $2260, would be covered by the Section 8 program. In this case, the program would reimburse the landlord $1810 ($2260 - $450).
If the landlord charges the market rent of $2487, the Section 8 program would still only cover up to $2260. Therefore, the landlord would receive the same $1810 from the program plus the tenant's $450, totaling $2260. The landlord would then have to decide whether to accept the lower reimbursement or to seek non-voucher tenants willing to pay the higher market rate.
The typical reimbursement gap for a two-bedroom unit in ZIP 80303, when charging market rent, is thus $227 ($2487 - $2260). This gap represents the difference between what landlords could potentially earn from market-rate tenants and what they receive from the Section 8 program.
In summary, landlords in ZIP 80303 should understand that the SAFMR of $2260 sets the ceiling for Section 8 reimbursement, regardless of the local market rent. They must weigh the guaranteed monthly payments against the potential loss from not charging market rates.
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.