Section 8 Fair Market Rent (FMR) for ZIP 80457 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 80457

• Jefferson County Housing Authority (Wheat Ridge, CO) - 1,880 Section 8 vouchers
• Lakewood Housing Authority (Lakewood, CO) - 1,439 Section 8 vouchers
• Arvada Housing Authority (Arvada, CO) - 562 Section 8 vouchers

To determine if you should buy in ZIP 80457 (Evergreen, CO) for Section 8, follow these steps:

Step 1: Debt Service Coverage Ratio (DSCR)

• If the Fair Market Rent (FMR) of $2660 does not cover the debt service on a property valued at $518,661, the answer is No. For instance, if the annual debt service exceeds $31,920 ($2660 x 12), then the FMR does not sufficiently support the investment.
• If the FMR of $2660 can cover the debt service on the property, proceed to Step 2.

Step 2: Market Rent Comparison

• If the market rent is above the FMR, it suggests that Section 8 tenants might struggle to find comparable housing outside the program, making the area attractive for Section 8 properties.
• If the market rent is equal to the FMR, it indicates that the rental rates align with what the government will pay, making the investment viable but less advantageous.
• If the market rent is below the FMR, it means that landlords could potentially receive more than the local market rate, which is beneficial for Section 8 investments.

Step 3: Rental Demand

• The 14.7% of renters in the area suggests moderate demand for rental properties. However, the lack of data on days on market (DOM) makes it difficult to assess the speed at which units are filled.
• If you can secure a steady flow of Section 8 tenants and the DOM is low, the answer is Yes.
• If the DOM is high, indicating difficulty in filling units, the answer is No.
• If the DOM is moderate, it depends on your ability to manage the property effectively and the local competition for Section 8 tenants.

In summary, purchasing a property in ZIP 80457 for Section 8 investment hinges on whether the FMR covers the debt service, how market rents compare to the FMR, and the strength of rental demand. With an FMR of $2660 and a median home value of $518,661, you must ensure that the FMR is sufficient to meet financial obligations. The absence of market rent data introduces uncertainty, but if it's below the FMR, it would be favorable. Lastly, the moderate rental population percentage of 14.7% requires a thorough understanding of the local rental market dynamics and the efficiency of tenant placement.

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.