Location: Morgan County, CO | Metro: Denver-Aurora-Centennial, 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 | $1,580 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,470 | $416,849 | 0.59% | F |
| 4BR | $2,750 | $494,594 | 0.56% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 80654 stands at $91,864, which places it above the national average. However, when juxtaposed against the market rate rent of $1,234, the financial landscape becomes more nuanced. This rent equates to approximately 16% of the median annual income, which is within the generally recommended threshold of not exceeding 30% of gross income. Yet, the true test of affordability emerges when comparing the market rate to the Fair Market Rent (FMR) set by HUD for Section 8 vouchers, which is $1,680 for ZIP 80654 in fiscal year 2024.
The disparity between the market rate and the voucher payment standard highlights a significant affordability gap. For renters, this means that while the market rate is manageable, the voucher rate would cover higher-cost units, potentially offering a wider range of housing options. This gap could lead to increased competition among landlords who accept vouchers, as they may have to compete with those who charge market rates but offer fewer amenities or less desirable locations.
Given that 25.3% of the 3,657 residents are renters, landlords must carefully consider their strategy. Accepting vouchers can ensure a steady stream of rental income, albeit at a lower rate than the market. On the other hand, focusing on cash-paying tenants might yield higher monthly rents, but it comes with the risk of a smaller pool of potential renters who can afford the higher costs.
The takeaway for landlords: In ZIP 80654, there is a clear choice to make. Accepting vouchers ensures a reliable tenant base willing to pay up to $1,680 per month, though this is below the market rate. Opting for cash-paying tenants allows for capturing the market rate of $1,234, but with the understanding that only a portion of the local population will be able to afford these rates without assistance. Landlords should weigh the benefits of guaranteed payments versus the potential for higher revenue, considering the demographics and economic conditions of the area.
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.