Section 8 Fair Market Rent (FMR) for ZIP 80401 - 2027

Investment Score for ZIP 80401

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	$1,770
1 Bedroom	$1,850
2 Bedrooms	$2,190
3 Bedrooms	$2,870
4 Bedrooms	$3,210
5 Bedrooms	$3,724
6 Bedrooms	$4,171
7 Bedrooms	$4,505
8 Bedrooms	$4,730

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
1BR	$1,850	$365,280	0.51%	F
2BR	$2,190	$487,263	0.45%	F
3BR	$2,870	$739,514	0.39%	F
4BR	$3,210	$1,020,588	0.31%	F
5BR	$3,724	$1,187,788	0.31%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80401 (Golden, CO) #### Section 8 Voucher Dynamics In ZIP code 80401, the Fair Market Rent (FMR) for a two-bedroom unit is set at $2,150 per month, which represents 21.9% of the median household income of $118,039. This suggests that the FMR is reasonably aligned with the local economic conditions. However, the actual rental market dynamics reveal a different picture. The Zillow median price for a two-bedroom unit is $492,893, indicating that the average sale price is significantly higher than the rent. The price-to-FMR ratio of 19.1x highlights the disparity between the cost of buying and renting in Golden, CO. For voucher holders, the FMR serves as a benchmark, but it is important to note that the actual rents can be higher, especially in a competitive market like Golden. Therefore, voucher holders face constraints in finding units that accept their vouchers and are priced at or below the FMR. #### Affordability & Renter Profile The population of Golden is 43,811, with 35.2% being renters. This indicates a substantial rental market presence. Given the occupancy rate of 95.5%, the market appears to be quite tight, with few vacancies available. The median household income of $118,039 suggests that the area is relatively affluent, and the high occupancy rate implies strong demand for rental properties. The 35.2% renter percentage also points towards a diverse demographic, including young professionals, families, and students from nearby colleges and universities. Despite the high median income, the affordability of housing remains a concern, particularly for those relying on Section 8 vouchers. With the FMR representing only a fraction of the median income, there is a significant gap between what voucher holders can afford and the actual rents charged by landlords. #### Investor Angle From an investor’s perspective, the ZIP code 80401 offers a mixed landscape. The FMR for a two-bedroom unit is $2,150, which is lower than the typical market rent. However, the high occupancy rate and strong demand suggest that rental properties could potentially command higher rates. To determine if the ZIP is cash-flow positive at FMR, we need to consider the typical expenses associated with owning a rental property. Assuming a conservative estimate of monthly expenses such as mortgage payments, maintenance, insurance, and property taxes totaling around $1,500, the net cash flow would be $650 per month. This is a positive cash flow, but it is important to note that the actual expenses might vary depending on the specific property and its condition. The investment grade for this ZIP code can be assessed based on the demand and the potential for steady cash flow. Given the high occupancy rate and the strong demand for rental properties, the investment grade appears to be good. However, the challenge lies in finding properties that are willing to accept Section 8 vouchers, as many landlords prefer higher-paying tenants due to the competitive nature of the market. #### Specific Actionable Insights 1. **Target Properties Below FMR**: Investors should focus on acquiring properties that can be rented out at or slightly below the FMR. For instance, a two-bedroom unit priced at $2,150 or less would be ideal for attracting voucher holders. This strategy ensures compliance with Section 8 requirements while maximizing the chances of securing tenants. 2. **Consider Property Enhancements**: Given the high demand and limited supply, investing in property enhancements can make a unit more attractive to voucher holders. Improvements such as modern appliances, updated bathrooms, and energy-efficient features can help justify a slightly higher rent within the FMR range. For example, a renovated two-bedroom unit might command a rent closer to $2,150, which is still within the FMR guidelines. 3. **Engage with Local Real Estate Networks**: Networking with local real estate agents and property managers can provide valuable insights into the preferences of voucher holders and landlords. These networks can help identify properties that are more likely to accept Section 8 vouchers and understand the local rental market dynamics better. #### Bottom Line For Section 8-focused investors, the ZIP code 80401 presents a challenging yet potentially rewarding opportunity. The high occupancy rate and strong demand indicate a robust rental market, but the competition for tenants means that landlords must be selective about the properties they acquire. Based on the data provided, the recommendation is to **Hold** investments in this ZIP code. While there is potential for positive cash flow, the tight market and landlord preferences for higher-paying tenants mean that finding properties that accept Section 8 vouchers can be difficult. Investors should proceed with caution, focusing on properties that can be rented out at or below the FMR and considering strategic enhancements to improve their attractiveness to voucher holders.

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.