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 | $980 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $980 | $141,212 | 0.69% | D |
| 2BR | $1,280 | $178,642 | 0.72% | D |
| 3BR | $1,750 | $253,947 | 0.69% | D |
| 4BR | $2,150 | $359,423 | 0.6% | F |
| 5BR | $2,494 | $336,343 | 0.74% | D |
U.S. Census Bureau data (2024)
ZIP code 85364 covers a significant portion of Yuma, Arizona, characterized by a blend of established residential neighborhoods and proximity to key regional economic drivers. This area is heavily influenced by the presence of Marine Corps Air Station Yuma, a major employer that drives consistent local demand for housing. The community retains a distinct desert city feel with an emphasis on outdoor recreation along the Colorado River, while local infrastructure supports a mix of retail and service businesses catering to both military families and long-term residents.
From a numerical standpoint, the area presents a compelling case for Section 8 investors. The Full FMR for a 2-bedroom unit in FY2026 is $1,420, which notably exceeds the current market rent of $1,221, creating a positive gap of $199 per month. This premium allows voucher holders to access quality inventory while potentially boosting landlord yields. With a median home value of $266,360 and a median 2BR sale price of $185,224, acquisition costs remain relatively approachable. However, investors should factor in a median days on market of 67 days, indicating a sales cycle that requires patience for exits.
The tenant pool is robust, underpinned by a 40.1% renter share and a median household income of $57,874. While local school ratings show variation, with public district schools generally receiving average performance scores, the proximity to the military base ensures a steady influx of families who often qualify for or utilize housing vouchers. Public transit via Yuma County Area Transit serves the region, though car dependency remains high, suggesting that properties with dedicated parking are particularly attractive to this demographic.
The Section 8 verdict for 85364 is strongly positive for cashflow seekers. The $199 spread between the 2BR FMR ($1,420) and market rent ($1,221) provides an immediate buffer against vacancies and expenses, a rarity in many markets. Combined with moderate entry prices relative to the FMR, this ZIP code offers a viable environment for investors prioritizing stabilized, government-backed income over rapid appreciation or quick flips.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.