Location: Gila County, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,080 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP 85192, specifically Winkelman, AZ, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for FY 2024 is set at $1570, while the market rent is currently unavailable. However, based on historical trends and the economic context of the area, it is reasonable to infer that the market rent exceeds the FMR.
In ZIP 85192, 17.5% of residents are renters, indicating a moderate rental demand. The median home value stands at $159,755, suggesting that homeownership is relatively affordable. The median income is $59,922, which provides insight into the financial capacity of the population. Given these conditions, if the market rent were to be significantly higher than the FMR, landlords would face a dilemma: either accept lower rents from voucher tenants or risk vacancies due to high rents.
If the FMR were to exceed the market rent, properties in ZIP 85192 would become a yield play. Voucher tenants would ensure steady cash flow, even if the rent is slightly below the market rate. In such a scenario, the gap would translate into a direct financial benefit for landlords, enhancing their overall investment performance.
However, since the market rent is not available, we must consider the potential cost of housing voucher tenants below open-market rates. The gap between the FMR and the market rent could result in landlords receiving less than what they might charge in an open market, thereby reducing their profit margins. This scenario underscores the importance of understanding the local rental dynamics and the impact of Section 8 vouchers on property yields.
Given the economic context, landlords should carefully evaluate the trade-offs between accepting voucher tenants and potentially higher market rents. The analysis must anchor on the specific ZIP code data and broader economic indicators to make informed decisions.
Data Sources: FMR data from HUD (2027). 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.