Location: La Paz County, AZ | Metro: La Paz County, AZ
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
U.S. Census Bureau data (2024)
In evaluating whether to invest in ZIP code 85346 for Section 8 properties, follow this decision tree:
1) Does FMR $1,250 (metro FY 2026) clear debt service on a $199,016 property?
If your debt service (mortgage payment) is less than $1,250 per month, then the answer is yes. For example, if you can secure a mortgage rate that results in a monthly payment under $1,250, the Fair Market Rent (FMR) will cover your costs and leave room for profit.
2) Is market rent $836 (Census ACS) above, at, or below FMR?
The market rent of $836 is below the FMR of $1,250. This means that if you decide to rent to non-Section 8 tenants, you could potentially charge up to $1,250 per month without pricing yourself out of the market. However, if you're only considering Section 8 tenants, the $836 figure is irrelevant since you'll be charging the FMR.
3) Are 22.2% renters + N/A-day days on the market (DOM) enough demand?
The rental rate of 22.2% indicates that a significant portion of the housing units in ZIP 85346 are occupied by renters. However, the lack of data on days on the market (DOM) makes it difficult to assess the speed at which properties are being rented. If the DOM is low, it suggests high demand and quick turnover, which would be favorable for an investment focused on Section 8 properties.
Yes: If you can secure a property with a debt service lower than $1,250 and there's sufficient demand indicated by a low DOM, purchasing in ZIP 85346 is a good decision. The FMR covers your costs, and you can leverage the higher FMR compared to market rent to attract tenants.
No: If the debt service on a $199,016 property exceeds $1,250, or if the DOM is high, indicating low demand, investing in this ZIP code is not advisable. High debt service means the FMR won't cover your costs, while a high DOM suggests difficulty in finding tenants.
It Depends: If the debt service is close to but slightly above $1,250, and the DOM is moderate, the decision hinges on other factors such as property management costs, potential for rent increases, and the stability of the local economy. A slight margin above $1,250 might still be manageable with careful budgeting and strategic management practices.
Investors must consider these points carefully before making a decision to purchase in ZIP 85346. The clarity of each branch in the decision tree should guide your investment strategy based on the financial realities and market conditions of the area.
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.