Location: Denver-Aurora-Centennial, CO | Metro: Boulder, 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 | $1,480 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,540 |
| 4 Bedrooms | $2,920 |
| 5 Bedrooms | $3,387 |
| 6 Bedrooms | $3,793 |
| 7 Bedrooms | $4,096 |
| 8 Bedrooms | $4,301 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,620 | $389,895 | 0.42% | F |
| 2BR | $1,920 | $533,354 | 0.36% | F |
| 3BR | $2,540 | $794,383 | 0.32% | F |
| 4BR | $2,920 | $947,560 | 0.31% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 80466, which encompasses Nederland, CO, is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $2190, while the Zillow Observed Rent Index (ZORI) indicates that the market rent is $2,023. This means there is a gap of $167, representing a difference of approximately 7.8% between the two figures.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to generate higher yields. The federal government's rental subsidy program ensures that voucher holders pay only a portion of their income towards rent, with the remainder covered by the voucher. In Nederland, where 34.3% of residents are renters and the median income is $100,962, this financial support can be particularly advantageous. Landlords can charge close to the FMR rate without the risk of vacancy, as the government will cover the difference between what the tenant can afford and the FMR.
However, it is important to consider the implications of renting to voucher tenants at rates below the open-market levels. While the FMR provides a guaranteed minimum rent, it also means that landlords might miss out on potential revenue if the market rent were to rise above the FMR. Additionally, the administrative burden and sometimes slower payment cycles associated with Section 8 vouchers must be factored into the investment decision.
In summary, the gap between the FMR and the market rent in Nederland, CO, makes it a potentially lucrative area for landlords willing to participate in the Section 8 program. The median home value of $677,750 suggests a robust local economy, which supports the viability of the Section 8 strategy in this zip code.
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.