Location: Boulder, 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 | $1,570 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,680 |
| 4 Bedrooms | $3,100 |
| 5 Bedrooms | $3,596 |
| 6 Bedrooms | $4,028 |
| 7 Bedrooms | $4,350 |
| 8 Bedrooms | $4,568 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,740 | $314,362 | 0.55% | F |
| 2BR | $2,050 | $492,971 | 0.42% | F |
| 3BR | $2,680 | $684,545 | 0.39% | F |
U.S. Census Bureau data (2024)
In analyzing ZIP 80481, located in Ward, CO, several key concerns arise regarding its suitability for investment through the Section 8 program. The first objection pertains to whether the Fair Market Rent (FMR) of $2360 for the fiscal year 2024 will sufficiently cover the mortgage on a home valued at $514,067. To address this, it's important to consider that the FMR represents the average rental rate for the area, not necessarily the exact amount a landlord would receive. A home priced at $514,067 might have a higher mortgage payment than what the FMR suggests, making it less financially viable under the Section 8 program.
The second objection relates to the low renter demand indicated by the 1.6% figure. This percentage likely reflects the proportion of renters in the population, suggesting a relatively small pool of potential tenants. However, the data does not specify the total number of units or the exact number of renters. Despite this limitation, it's reasonable to infer that with such low demand, finding tenants could be challenging. Landlords should consider supplementing their analysis with local demographic studies to better understand the housing needs and preferences in Ward.
The third concern is the ability of vouchers to keep pace with market rents, especially given that the data does not provide a comparison between voucher amounts and actual market rates (N/A). Without this information, it's difficult to assess if the Section 8 program can offer competitive compensation relative to the local rental market. Typically, voucher amounts are adjusted annually based on changes in the FMR, but this adjustment may not always match the actual increases seen in the local market. Investors must monitor both the FMR and the specific voucher rates to ensure they remain aligned.
To summarize, while ZIP 80481 presents some challenges for Section 8 investment, particularly around covering mortgage payments and renter demand, these issues can be mitigated with thorough due diligence. The lack of data comparing voucher amounts to market rents introduces uncertainty, but ongoing monitoring of FMR adjustments can help maintain financial viability.
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.