Location: Yuma, AZ | Metro: Yuma, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
U.S. Census Bureau data (2024)
A landlord considering whether to buy into ZIP code 85336 for Section 8 purposes must evaluate several factors to make an informed decision. The first step is to determine if the Fair Market Rent (FMR) of $970 for the fiscal year 2024 can cover the debt service on a property valued at $250,692. This means assessing the monthly mortgage payments and other expenses against the FMR to ensure profitability.
If the FMR of $970 does not cover the debt service, the answer is a clear no. Investing in a property where the rental income cannot meet financial obligations is risky and unwise. However, if the FMR exceeds the required debt service, proceed to the next question.
The second factor is comparing the FMR with the market rent. In ZIP 85336, the average market rent based on Census ACS data is $750. Since the FMR is higher than the market rent, a landlord can expect to receive a premium for accepting Section 8 tenants. This is a positive indicator, suggesting that the answer moves towards a yes.
The third and final consideration is the demand for rental properties. In ZIP 85336, 38.5% of residents are renters, which represents a significant portion of the population. However, the days on the market (DOM) data is not available, making it difficult to assess how quickly rental units are typically filled. Without this information, the decision hinges on the first two factors.
If the FMR covers the debt service and is higher than the market rent, the answer is a strong yes. The higher FMR provides a buffer against potential fluctuations in market rents, ensuring steady income. Moreover, the substantial percentage of renters indicates a robust demand for housing, which is beneficial for maintaining occupancy rates.
In cases where the FMR just meets the debt service but remains above the market rent, the answer is still yes, albeit with a cautionary note. Landlords must be prepared for any economic shifts that could affect their income stream. They should also consider the possibility of receiving Section 8 vouchers as a reliable source of rent, despite the lack of DOM data.
When the FMR does not cover the debt service, even if it is above the market rent, the answer is definitively no. Financial sustainability is paramount in real estate investments, and without the ability to meet these basic obligations, the risk outweighs the potential benefits.
ZIP 85336 presents a mixed picture for Section 8 investment, with the key determinants being the coverage of debt service and the comparison between FMR and market rent. With a strong FMR and a high percentage of renters, the zip code offers favorable conditions for landlords willing to accept Section 8 tenants, provided they conduct thorough financial planning.
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.