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 | $2,050 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,540 |
| 3 Bedrooms | $3,340 |
| 4 Bedrooms | $3,730 |
| 5 Bedrooms | $4,327 |
| 6 Bedrooms | $4,846 |
| 7 Bedrooms | $5,234 |
| 8 Bedrooms | $5,496 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,540 | $558,641 | 0.45% | F |
| 3BR | $3,340 | $720,420 | 0.46% | F |
| 4BR | $3,730 | $938,188 | 0.4% | F |
U.S. Census Bureau data (2024)
A decision tree for considering whether to purchase properties in ZIP 80454 (Indian Hills, CO) for Section 8 tenants requires answering three key questions:
1. Does the Fair Market Rent (FMR) of $2640 cover the debt service on a property valued at $688,411?
To determine if the FMR covers the debt service, you must first calculate the debt service based on the property value. Assuming a standard mortgage rate of around 4.5%, the monthly principal and interest payment on a $688,411 property would be approximately $3,450. Therefore, the answer to this question is No. The FMR of $2640 does not clear the debt service on a property of that value.
2. Is the market rent above, at, or below the FMR?
The data indicates that the market rent for ZIP 80454 is N/A, which means there is insufficient information to compare the market rent against the FMR. The answer to this question is It Depends, as without knowing the market rent, it's impossible to gauge how competitive Section 8 rents are in this area.
3. Are the 8.7% renters and N/A-day days on market (DOM) sufficient to meet demand?
The percentage of renters at 8.7% suggests a low demand for rental properties in Indian Hills, CO. This figure alone indicates that the rental market is not robust. Additionally, the DOM being listed as N/A implies that there is either very little turnover or the data is incomplete. Given these factors, the answer to this question is No. The combination of low renter percentages and unclear DOM data points towards a weak rental market, making it less likely that Section 8 properties will find sufficient demand.
In summary, for a landlord asking if they should buy in ZIP 80454 for Section 8 tenants, the answers to the gating questions indicate that purchasing such a property is not advisable. The FMR does not cover the debt service, there is insufficient data to assess market rent competitiveness, and the rental demand appears too low to support the investment effectively.
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.