Location: Denver-Aurora-Centennial, CO | Metro: Denver-Aurora-Centennial, CO MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,860 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,310 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,390 |
| 5 Bedrooms | $3,932 |
| 6 Bedrooms | $4,404 |
| 7 Bedrooms | $4,756 |
| 8 Bedrooms | $4,994 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 80439 (Evergreen, CO) provides a clear snapshot of potential rental income versus property value. For an annualized Fair Market Rent (FMR) of $2660 for a 2BR unit, the total annual rental income would be $31,920. Given the median home value of $905,674, this translates to a gross yield of approximately 3.5% when participating in the Section 8 program.
In contrast, using the Zillow Observed Rent Index (ZORI) of $2,575 for a 2BR unit, the annual market rent would be $30,900. With the same median home value, this scenario yields a gross rental income of about 3.4%. This slight difference highlights that the Section 8 FMR is marginally higher than the market rent, but both figures are relatively close.
The 9.7% renter density in Evergreen suggests a competitive market where owner-occupancy is predominant. Additionally, the Days on Market (DOM) figure of 24 days indicates that homes are selling quickly, which could imply strong demand for owner-occupied properties over rentals. This context makes the market rent scenario of $30,900 more realistic for most investors, as it reflects the broader housing market dynamics.
However, for those willing to engage with the Section 8 program, the slightly higher FMR of $31,920 offers a marginal increase in gross yield, though still below 4%. The decision to participate in Section 8 should weigh the benefits of steady government-backed income against the administrative burdens and lower gross yield compared to market rates.
To summarize, the gross yield for a 2BR unit under Section 8 in ZIP 80439 is 3.5%, while the market rent gross yield is 3.4%. Given the local market conditions, the market rent scenario is more likely to be encountered by typical investors, but the Section 8 option remains viable for those seeking stable, long-term rental agreements.
Data Sources: FMR data from HUD (2027). 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.