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 | $2,280 |
| 1 Bedroom | $2,390 |
| 2 Bedrooms | $2,830 |
| 3 Bedrooms | $3,710 |
| 4 Bedrooms | $4,150 |
| 5 Bedrooms | $4,814 |
| 6 Bedrooms | $5,392 |
| 7 Bedrooms | $5,823 |
| 8 Bedrooms | $6,114 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,390 | $397,208 | 0.6% | D |
| 2BR | $2,830 | $559,692 | 0.51% | F |
| 3BR | $3,710 | $724,941 | 0.51% | F |
| 4BR | $4,150 | $864,236 | 0.48% | F |
| 5BR | $4,814 | $1,168,463 | 0.41% | F |
U.S. Census Bureau data (2024)
A decision to invest in ZIP 80433 (Conifer, CO) for Section 8 properties hinges on three key factors: Fair Market Rent (FMR), market rent, and rental demand.
1) Does the FMR of $2,560 cover the debt service on a property valued at $758,683?
Yes: The FMR of $2,560 is sufficient to cover the debt service on a property priced at $758,683. This assumes that the property is financed at typical rates and terms, allowing the landlord to meet monthly mortgage obligations comfortably.
No: The FMR of $2,560 does not fully cover the debt service on a property worth $758,683. Landlords will need to consider additional income sources or reduce the purchase price to ensure financial viability.
2) Is the market rent of $2,537 above, at, or below the FMR?
Above FMR: The market rent is slightly below the FMR at $2,537. While this is close, it indicates that landlords may struggle to find tenants willing to pay the higher FMR rate, which could lead to vacancy issues.
At or Below FMR: Given that the market rent is just under the FMR, it suggests that the rental market is competitive. Landlords can expect to attract tenants paying the market rate, but they must be prepared for potential vacancy periods.
3) Are 7.7% renters and a 40-day Days on Market (DOM) indicative of sufficient rental demand?
Yes: If the rental market is robust despite the relatively low percentage of renters (7.7%), then the 40-day DOM indicates reasonable demand. However, landlords should be cautious as the percentage of renters is quite low, suggesting limited overall demand.
No: With only 7.7% of residents being renters and a DOM of 40 days, the demand for rental properties is marginal. This scenario would likely result in prolonged vacancy periods, making it challenging to maintain steady cash flow.
It Depends: The 7.7% renters and 40-day DOM suggest a moderate demand environment. Landlords should carefully evaluate the specific property and neighborhood conditions to determine if the investment aligns with their risk tolerance and long-term goals.
In conclusion, purchasing a Section 8 property in ZIP 80433 requires careful consideration of these factors. The FMR adequately covers debt service, but the market rent being slightly below FMR and the low percentage of renters present challenges that may outweigh the benefits for some investors.
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.