Location: Greenlee County, AZ | Metro: Greenlee County, AZ
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
In evaluating whether to purchase properties in ZIP code 85534 for Section 8 investment, follow this decision tree:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $1,080. For a property valued at $193,220, determine if the $1,080 monthly rental income can cover the debt service. The debt service includes mortgage payments, property taxes, insurance, and other expenses.
Yes: If the $1,080 FMR comfortably covers the total debt service, proceed to Step 2.
No: If the $1,080 FMR does not clear the debt service, purchasing in this ZIP code is not advisable for Section 8 investment.
It Depends: If the $1,080 FMR is close but not entirely sufficient to cover all debt service costs, consider negotiating lower expenses or finding a property with a lower purchase price.
Step 2: Market Rent Comparison
The average market rent for ZIP 85534, according to Census ACS data, is $675 per month. Compare this figure to the $1,080 FMR.
Above: If the market rent is above the FMR, the property may still be attractive for non-Section 8 tenants willing to pay more than the government subsidy.
At: If the market rent is exactly at the FMR, the property is priced correctly for Section 8 tenants, making it a viable option.
Below: If the market rent is below the FMR, there is an opportunity to receive higher rental income through Section 8 vouchers, which can be beneficial.
Step 3: Demand Analysis
ZIP 85534 has a 22.2% rental rate. Additionally, the number of days on the market (DOM) is not available, which could indicate either strong or weak demand depending on the context. However, with the percentage of renters known, we can make some assessments.
Yes: If the rental rate is high and the DOM is low, there is sufficient demand to support a Section 8 property. High rental rates and quick turnover suggest a robust tenant pool.
No: If the rental rate is low and the DOM is high, demand is insufficient, and it would be challenging to find and retain tenants, even with Section 8 subsidies.
It Depends: With only the rental rate known and DOM unavailable, the viability hinges on additional factors such as local employment trends, population growth, and competition from other housing options. A 22.2% rental rate suggests moderate demand, but without DOM data, the exact market dynamics remain unclear.
To summarize, if the $1,080 FMR clears debt service, market rent is below or at the FMR, and there is a moderate to high demand indicated by the rental rate, then purchasing in ZIP 85534 for Section 8 investment is a sound decision. However, without DOM data, the final assessment must consider broader market conditions.
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.