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 | $1,730 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,810 |
| 4 Bedrooms | $3,140 |
| 5 Bedrooms | $3,642 |
| 6 Bedrooms | $4,079 |
| 7 Bedrooms | $4,405 |
| 8 Bedrooms | $4,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,810 | $361,925 | 0.5% | F |
| 2BR | $2,140 | $500,502 | 0.43% | F |
| 3BR | $2,810 | $671,774 | 0.42% | F |
| 4BR | $3,140 | $811,817 | 0.39% | F |
U.S. Census Bureau data (2024)
The ZIP code 80440, located in Fairplay, CO, presents an interesting scenario when analyzed from the renter’s perspective. The median household income in this area stands at $116,143, which is significantly higher than the median income seen in many other parts of the country. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is set at $2,767. This figure represents the typical monthly rent that tenants might expect to pay.
In comparison, the Fair Market Rent (FMR) for the zip code for fiscal year 2024 is set at $1,780. This is the amount that the federal government determines to be reasonable for a voucher payment, aiming to cover the cost of rent in the area without placing undue financial strain on the tenant.
The disparity between the ZORI and the FMR highlights a significant affordability gap for renters in Fairplay. With only 24.6% of the 3,502 population being renters, competition among tenants for available housing is likely to be low. This means that landlords might find it challenging to fill vacancies if they price their properties at the market rate of $2,767, especially when considering that the majority of renters are likely to rely on government assistance like vouchers.
The takeaway for landlords considering their rental strategies is clear. Pricing properties above the FMR of $1,780 could limit their pool of potential tenants to those who do not require financial assistance, reducing the number of applicants. Landlords should consider offering units that meet or are close to the FMR to attract both voucher recipients and those willing to pay out-of-pocket, ensuring steady occupancy rates and a balanced approach to managing their investment portfolios.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.