Section 8 Fair Market Rent (FMR) for ZIP 85540 - 2027

Location: Greenlee County, AZ | Metro: Greenlee County, AZ

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$740
1 Bedroom	$890
2 Bedrooms	$1,060
3 Bedrooms	$1,260
4 Bedrooms	$1,650
5 Bedrooms	$1,914
6 Bedrooms	$2,144
7 Bedrooms	$2,316
8 Bedrooms	$2,432

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,992

Median Household Income

$78,431

Housing Units

1,637

Renter Percentage

98.8%

Occupancy Rate

85.0%

Renter Occupied

1,375

When evaluating whether to invest in ZIP code 85540 for Section 8 properties, follow these steps:

1) Does the Fair Market Rent (FMR) of $1,170 cover the debt service on a property?

If Yes: Proceed to the next question.
If No: Do not consider this ZIP for Section 8 investments. The FMR must exceed the debt service to ensure profitability.

2) How does the market rent of $612 compare to the FMR?

If Above: There is potential for profit beyond what Section 8 can offer. Consider diversifying your rental portfolio.
If At or Below: Section 8 tenants can afford the market rent, making it a viable option. Move to the third question.

3) Is there sufficient demand given that 98.8% of residents are renters and the days on market (DOM) is N/A?

If Yes: The high percentage of renters indicates strong demand. If DOM is low, it suggests quick turnover and minimal vacancy periods, which is favorable for Section 8 investments. Invest.
If No: A lack of data on DOM might indicate a less active market. This uncertainty can lead to higher vacancy rates, which would be detrimental to a Section 8 investment. It depends on other factors such as competition and local economic conditions.

In summary, ZIP 85540 presents a clear path for landlords considering Section 8 investments if the FMR sufficiently covers the debt service and the market rent is at or below the FMR. The high percentage of renters supports demand, but the absence of DOM data introduces an element of risk that requires further investigation into local market dynamics.

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.