Location: Yuma, AZ | Metro: Yuma, AZ MSA
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 | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $207,466 | 0.61% | D |
| 3BR | $1,710 | $268,957 | 0.64% | D |
| 4BR | $2,100 | $294,670 | 0.71% | D |
| 5BR | $2,436 | $285,571 | 0.85% | C |
U.S. Census Bureau data (2024)
Somerton, AZ, located in ZIP code 85350, presents several key considerations for landlords and small-portfolio investors. One primary concern is whether the Fair Market Rent (FMR) of $1240 for the fiscal year 2024 can adequately cover the mortgage on a median-priced home valued at $273,008. The FMR represents the average rent level that is considered fair for the area, but it does not directly correlate with mortgage costs. To accurately assess this, one must consider the interest rates and loan terms specific to the investment property. However, the FMR does provide a benchmark for rental pricing that aligns with local market conditions.
The second objection pertains to the level of renter demand in Somerton, which stands at 25.9%. This percentage indicates that a quarter of the housing units are rented out, suggesting a moderate demand for rental properties. While this figure is lower than some urban areas, it still reflects a significant portion of the housing market. Additionally, the rental vacancy rate can offer further insight into the balance between supply and demand. If the vacancy rate is low, it suggests that there is sufficient demand to support rental properties.
A final concern is whether the Housing Choice Voucher program will keep pace with market rents, which currently average around $890. The voucher amount is adjusted annually based on the FMR, so while it might not always match the exact market rent, it should generally remain close. In ZIP 85350, the gap between the voucher amount and market rent is relatively narrow, making it feasible for landlords to participate in the program without incurring significant losses. Nonetheless, landlords should be aware of the administrative aspects and potential delays in receiving payments through the voucher system.
In conclusion, while the data provides insights into the rental market dynamics of Somerton, AZ, it is crucial for investors to conduct thorough due diligence, including understanding the specifics of mortgage financing, rental vacancy rates, and the operational logistics of accepting Housing Choice Vouchers. These factors will ultimately determine the viability and profitability of investing in rental properties in ZIP 85350.
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.