Location: Denver-Aurora-Centennial, CO | Metro: Teller County, CO HUD Metro FMR Area
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 | $1,730 |
| 1 Bedroom | $1,860 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $2,880 |
| 4 Bedrooms | $3,230 |
| 5 Bedrooms | $3,747 |
| 6 Bedrooms | $4,197 |
| 7 Bedrooms | $4,533 |
| 8 Bedrooms | $4,760 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,860 | $319,092 | 0.58% | F |
| 2BR | $2,180 | $399,568 | 0.55% | F |
| 3BR | $2,880 | $522,673 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 80827 (Lake George, CO) might have several concerns regarding the viability of investing in this area. Let's address these concerns with the available data.
Objection 1: Will the Fair Market Rent (FMR) of $1,690 for the fiscal year 2024 cover the mortgage on a $434,370 home?
The FMR of $1,690 represents the average rent that can be expected for a property in this zip code. To determine if it covers a mortgage, we need to consider the typical mortgage rates and terms. A 30-year fixed-rate mortgage at an interest rate of around 5% would result in monthly payments of approximately $2,250, including principal, interest, taxes, and insurance. This means that the FMR alone does not cover the mortgage payment. However, investors should also consider potential appreciation in property values and other factors such as location desirability and future rental increases.
Objection 2: Is there enough renter demand at 16.5%?
The rental vacancy rate of 16.5% indicates that there is a moderate level of competition among landlords in ZIP 80827. While this percentage is higher than some desirable markets, it still suggests a reasonable demand for rentals. The key here is understanding the local economy and tenant demographics. If there are steady employment opportunities and a growing population, the demand for rentals could increase, making this vacancy rate less concerning over time. Additionally, the presence of seasonal tourism can provide a temporary boost in rental demand.
Objection 3: Will vouchers keep pace with market rents?
The data provided does not include specifics on how Housing Choice Vouchers (commonly known as Section 8 vouchers) compare to the market rents in ZIP 80827. Without this information, it's challenging to definitively state whether vouchers will keep up with market rents. However, historically, voucher amounts have been adjusted annually based on the HUD's Fair Market Rents, which could help maintain a balance with market rates. Investors should verify the latest voucher amounts and any adjustments planned for the coming years to ensure they align with the FMR of $1,690.
In summary, while the FMR of $1,690 may not fully cover the mortgage on a $434,370 home, other factors such as property value appreciation and economic conditions can influence investment decisions positively. The 16.5% rental vacancy rate signals moderate competition but leaves room for strategic investments. Lastly, the lack of specific data on voucher amounts makes it difficult to assess their adequacy relative to market rents, necessitating further research into local housing assistance programs.
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.