Section 8 Fair Market Rent (FMR) for ZIP 85011 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 85011 in Unknown, AZ presents several challenges for landlords considering Section 8 investments. One significant issue is tenant turnover, which can be exacerbated by the difference between the market rent and the Fair Market Rent (FMR) set at $1880 for FY 2024. If market rents are higher than this figure, landlords might face frequent turnover as tenants seek to move into homes that better match their financial capabilities.

Vacancy exposure is another concern. With no data on the average days on market (DOM), it's difficult to predict how quickly a property will be rented out. A longer DOM can lead to increased vacancy costs, impacting the bottom line significantly. Additionally, the lack of information on the typical home value and median income makes it hard to assess the level of deferred maintenance exposure. Landlords need to be aware that properties in areas with lower incomes and potentially lower home values may require more upkeep, which can increase operational expenses.

However, these risks must be weighed against the high renter density in the area, indicated by the unspecified percentage of renters. High renter density generally translates to higher demand for rental housing, including Section 8 vouchers. This can provide a buffer against vacancy exposure and ensure a steady stream of potential tenants.

In conclusion, based on the available data, the risk for a first-time Section 8 landlord in ZIP 85011, Unknown, AZ is moderate.

Data Sources: FMR data from HUD (2027).

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.