Location: Denver-Aurora-Centennial, CO | Metro: Denver-Aurora-Centennial, CO MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,020 |
| 1 Bedroom | $2,110 |
| 2 Bedrooms | $2,500 |
| 3 Bedrooms | $3,280 |
| 4 Bedrooms | $3,670 |
| 5 Bedrooms | $4,257 |
| 6 Bedrooms | $4,768 |
| 7 Bedrooms | $5,149 |
| 8 Bedrooms | $5,406 |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 80475, which is located in Shawnee, Colorado, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for FY 2024 is set at $1790, whereas the market rent data from Zillow shows no specific figures for 80475, suggesting a lack of comprehensive rental data for this particular ZIP code. However, given the context of the surrounding areas and the general trend in rental prices, we can infer that the market rent in 80475 likely exceeds the FMR.
In ZIP 80475, the median home value stands at $530,863, indicating a relatively affluent neighborhood. Despite this, the percentage of renters is reported to be 0.0%, which is unusual and suggests either an error in reporting or a unique situation where homeownership is nearly universal. This high median home value also implies that rental properties in the area might command higher rates due to the overall cost of living and property values.
If the market rent were indeed higher than the FMR, landlords accepting Section 8 vouchers would be operating below open-market rates. For instance, if the market rent were $2000, the gap between the FMR and market rent would be $210, representing a 11.7% discount. This scenario would mean that landlords are subsidizing the difference, which could impact their cash flow and profitability. To offset this, landlords might focus on minimizing vacancy rates and maximizing occupancy to maintain yields.
On the other hand, if the market rent were lower than the FMR, which seems less likely given the high median home value, it would present a yield opportunity. Landlords could potentially secure higher rental incomes through voucher tenants compared to open-market rates, thereby increasing their returns on investment. However, since we do not have specific market rent figures for 80475, this remains speculative.
In conclusion, the disparity between FMR and market rent in ZIP 80475 can significantly influence the financial strategy for landlords and small-portfolio investors. While the exact market rent is unavailable, the high median home value suggests that rental rates may be above the FMR, leading to potential challenges in maintaining yields when accepting Section 8 vouchers.
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.