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 | $2,020 |
| 1 Bedroom | $2,110 |
| 2 Bedrooms | $2,500 |
| 3 Bedrooms | $3,280 |
| 4 Bedrooms | $3,670 |
| 5 Bedrooms | $4,257 |
| 6 Bedrooms | $4,768 |
| 7 Bedrooms | $5,149 |
| 8 Bedrooms | $5,406 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,110 | $296,650 | 0.71% | D |
| 2BR | $2,500 | $419,056 | 0.6% | F |
| 3BR | $3,280 | $584,697 | 0.56% | F |
| 4BR | $3,670 | $673,991 | 0.54% | F |
| 5BR | $4,257 | $761,988 | 0.56% | F |
U.S. Census Bureau data (2024)
The ZIP code 80421, located in Bailey, CO, presents an interesting scenario for both renters and landlords. The median household income here stands at $98,452, while the market rate for rent is $1,962 according to the Census ACS data. This suggests that a significant portion of the population might find it challenging to afford the market rate without financial assistance.
In comparison, the Fair Market Rent (FMR) set for zip code 80421 for fiscal year 2024 is $1,790. This figure represents the standard payment amount for housing vouchers, indicating a potential subsidy for eligible renters. The difference between the market rate ($1,962) and the FMR ($1,790) highlights an affordability gap of $172 per month for those relying on vouchers.
With only 9.1% of the 8,536 residents being renters, competition among landlords is relatively low. However, the limited number of renters means that landlords must be strategic in attracting tenants. Given the median income and the market rate, many potential renters might require assistance through vouchers to cover their housing costs.
The takeaway for landlords is clear: focusing on voucher acceptance could be a competitive advantage. While cash-paying tenants might offer higher rents, the availability of such tenants is constrained by the local income levels and high market rates. By accepting vouchers, landlords can tap into a segment of the rental market that is more likely to secure and retain tenants, ensuring steady rental income. Additionally, the slight reduction in rent due to the voucher standard (from $1,962 to $1,790) is a trade-off worth considering given the broader rental market dynamics and the scarcity of renters in Bailey, CO.
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.