Section 8 Fair Market Rent (FMR) for ZIP 80601 - 2027

Investment Score for ZIP 80601

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,690
1 Bedroom	$1,760
2 Bedrooms	$2,090
3 Bedrooms	$2,740
4 Bedrooms	$3,070
5 Bedrooms	$3,561
6 Bedrooms	$3,988
7 Bedrooms	$4,307
8 Bedrooms	$4,522

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,090	$353,695	0.59%	F
3BR	$2,740	$469,733	0.58%	F
4BR	$3,070	$530,110	0.58%	F
5BR	$3,561	$581,613	0.61%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 80601 (Brighton, CO) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 80601, as per the 2026 data, is set at $1980 for a two-bedroom unit. This represents 22.5% of the median household income of $105,417, which is relatively low compared to typical rent-to-income ratios seen in many metropolitan areas. However, the actual rental prices in Brighton are significantly higher. According to Zillow, the median price for a two-bedroom unit is $359,351, which translates to a monthly rent of approximately $1500 based on a 1% rule (monthly rent = 1% of property value). The price-to-FMR ratio of 15.1x indicates that the actual market rents are far above the FMR, suggesting that Section 8 voucher holders face significant constraints in finding affordable housing. They would likely struggle to find units that meet their budgetary requirements, as landlords may be unwilling to accept vouchers due to the higher market rents. #### Affordability & Renter Profile Given the median household income of $105,417, the affordability of housing in Brighton is quite challenging. With 28.4% of the population being renters, it suggests a diverse mix of residents, including young professionals, families, and potentially some retirees. However, the high price-to-FMR ratio implies that the market is tight, with limited options for those relying on Section 8 vouchers. The occupancy rate of 96.1% further supports this notion, indicating that there is little excess supply of rental units available. This tight market means that competition for rental properties is fierce, and the average renter must pay much more than the FMR to secure a place to live. #### Investor Angle From an investor perspective, the ZIP code 80601 presents both opportunities and challenges. While the median home values are high, the rental market is also robust. However, the cash flow potential for investors focusing on Section 8 vouchers is limited. Given the high actual market rents and the relatively low FMRs, landlords who accept Section 8 vouchers might find themselves renting below market rates, which could impact profitability. For instance, a two-bedroom unit with an FMR of $1980 would generate less income compared to the actual market rent of around $1500 per month based on the 1% rule, resulting in a lower net operating income (NOI) for the property. The investment grade of properties in this area would depend on factors such as location, condition, and demand. Despite the high median home values, the strong rental market suggests that there is a solid demand for rental properties. However, the challenge lies in balancing the need for affordable housing with the realities of the high-priced market. Investors should carefully consider the trade-offs between accepting Section 8 vouchers and renting at market rates. #### Specific Actionable Insights 1. **Focus on Higher-End Properties**: Given the high median household income and the tight rental market, investors might find more success by focusing on higher-end rental properties that can command market rates. This approach would likely yield better cash flow and returns on investment. 2. **Consider Mixed-Income Developments**: To cater to both voucher holders and market-rate tenants, developers could explore mixed-income housing projects. These developments can include a mix of units priced at FMR levels and others at market rates, providing a balanced solution that addresses affordability while maintaining financial viability. 3. **Utilize Incentive Programs**: Local and federal incentive programs designed to encourage landlords to accept Section 8 vouchers could be leveraged. For example, the Housing Choice Voucher Program offers incentives to landlords who agree to participate, which might help offset the lower rents associated with vouchers. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 80601 is to **Skip**. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow when relying solely on Section 8 vouchers. Instead, investors should consider other ZIP codes with more favorable conditions for affordable housing or focus on higher-end rental properties that can attract market-rate tenants. If they still wish to invest in Brighton, they should look into mixed-income developments or utilize incentive programs to mitigate the risks associated with lower rental incomes.

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.