Section 8 Fair Market Rent (FMR) for ZIP 85365 - 2027

Investment Score for ZIP 85365

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,170
1 Bedroom	$1,180
2 Bedrooms	$1,540
3 Bedrooms	$2,130
4 Bedrooms	$2,570
5 Bedrooms	$2,981
6 Bedrooms	$3,339
7 Bedrooms	$3,606
8 Bedrooms	$3,786

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,180	$177,073	0.67%	D
2BR	$1,540	$231,821	0.66%	D
3BR	$2,130	$298,619	0.71%	D
4BR	$2,570	$409,048	0.63%	D
5BR	$2,981	$501,230	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 85365 (Yuma, AZ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 85365 in Yuma, Arizona, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1,670 per month. However, the Zillow median price for a two-bedroom home in this area is $244,989, which translates to a price-to-FMR ratio of 12.2x. This means that the median price of a two-bedroom property is approximately 12.2 times the monthly rent of a similar unit covered under the Section 8 program. Given that the FMR is designed to reflect the average rental cost for units in a given area, it appears that actual rents may be higher than the FMR in Yuma. The FMR for a two-bedroom unit represents only about 28.5% of the median household income ($70,331), suggesting that voucher holders might face significant constraints in finding affordable housing. Many landlords may not accept vouchers due to the high price-to-FMR ratio, making it challenging for voucher recipients to secure housing. #### Affordability & Renter Profile In ZIP code 85365, the renter population constitutes 20.9% of the total population of 54,775 residents. This indicates that there are approximately 11,460 renters in the area. With an occupancy rate of 81.3%, it suggests that the housing market is relatively tight, but not overly saturated. There is a moderate demand for rental properties, but the supply seems to meet most of the needs. The median household income of $70,331 implies that the majority of residents can afford to pay higher rents, especially when compared to the FMR. However, the 20.9% of renters who rely on their income to cover housing costs might struggle to find affordable options. Given the high price-to-FMR ratio, it’s likely that many rental units are priced above the FMR, leading to a situation where affordability is a concern for low-income families. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. The FMR for a two-bedroom unit is $1,670, which is significantly lower than the median home price of $244,989. To determine if this is a cash-flow positive market, we need to consider the potential rental income against the mortgage payment, property taxes, insurance, maintenance, and other operating expenses. Assuming a typical mortgage rate of around 5% and a down payment of 20%, the monthly mortgage payment for a $244,989 property would be approximately $1,020. Adding property taxes (estimated at 1% of the home value), homeowner's insurance (around $1,000 annually), and maintenance costs (typically 1% of the home value), the total monthly expenses could be around $1,300. This leaves a margin of $370 per month before considering any profit, which is a slim margin but still potentially viable depending on the investor's criteria. The investment grade for this ZIP code would likely be rated as moderate. While there is a reasonable demand for rental properties, the high price-to-FMR ratio suggests that the market is not particularly favorable for investors looking to maximize returns through rental income alone. Investors should also consider the potential for appreciation in home values over time. #### Specific Actionable Insights 1. **Focus on Multi-Family Properties:** Single-family homes have a high price-to-FMR ratio, making them less attractive for cash-flow positive investments. Instead, investors should focus on multi-family properties, which typically have lower purchase prices relative to the number of units and can offer better rental yields. For example, a four-unit apartment complex might be more financially feasible than four individual single-family homes. 2. **Consider Renovation Projects:** Investors could look into purchasing older, less expensive properties and renovating them to increase their rental value. By improving the condition and amenities of these properties, they can command higher rents while still remaining within the FMR guidelines. This strategy can help bridge the gap between the high purchase prices and the lower FMRs. 3. **Engage with Local Landlords:** Since many landlords may not accept Section 8 vouchers due to the high price-to-FMR ratio, investors should actively engage with local landlords to understand their concerns and address them. This could involve offering management services or providing financial incentives to encourage acceptance of vouchers. #### Bottom Line For investors focusing specifically on Section 8 properties, the recommendation for ZIP code 85365 is to **Skip**. The high price-to-FMR ratio makes it difficult to achieve cash-flow positive investments with single-family homes. Multi-family properties and renovation projects might offer better opportunities, but the overall market conditions do not favor Section 8-focused investments in this ZIP code. Investors should consider other areas with a lower price-to-FMR ratio for better returns and ease of finding tenants willing to accept vouchers.

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.