Section 8 Fair Market Rent (FMR) for ZIP 85541 - 2027

Location: Gila County, AZ | Metro: Gila County, AZ

Investment Score for ZIP 85541

Monthly Rent (2BR)

$1,540

Median Price (2BR)

$344,211

1% Rule

0.45%

Annual Yield

5.37%

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	$1,890
4 Bedrooms	$2,180
5 Bedrooms	$2,529
6 Bedrooms	$2,832
7 Bedrooms	$3,059
8 Bedrooms	$3,212

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
2BR	$1,540	$344,211	0.45%	F
3BR	$1,890	$482,154	0.39%	F
4BR	$2,180	$699,391	0.31%	F
5BR	$2,529	$859,522	0.29%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

23,382

Median Household Income

$66,383

Housing Units

16,107

Renter Percentage

20.9%

Occupancy Rate

73.2%

Renter Occupied

2,469

A decision tree for evaluating ZIP 85541 (Payson, AZ) for Section 8 investments starts with understanding the Fair Market Rent (FMR) and how it aligns with your financial goals.

1) Does FMR $1,650 (metro FY 2026) clear debt service on a $446,638 property?

No: The FMR of $1,650 is unlikely to cover the debt service on a property valued at $446,638. This means that even if you can secure tenants paying the FMR, the income may not be sufficient to meet mortgage payments, taxes, insurance, and other expenses associated with owning such a property.

2) Is market rent $2,008 (ZORI) above, at, or below FMR?

Above: The ZORI, which stands for Zillow's Estimated Rent Index, is set at $2,008, significantly higher than the FMR of $1,650. This indicates that market conditions allow for rents above the FMR, suggesting potential for non-Section 8 tenants who might pay more.

3) Are 20.9% renters + 48-day DOM enough demand?

Yes: With 20.9% of residents being renters and an average Days on Market (DOM) of 48 days, there is a reasonable level of demand for rental properties in Payson. A DOM of 48 days suggests that properties typically do not stay vacant for long periods, indicating a steady flow of potential tenants.
It Depends: While the percentage of renters is decent, the demand for Section 8 properties specifically may vary. You must consider the availability of Section 8 vouchers and whether the local housing authority has a waiting list for these vouchers.
No: If the local demand for Section 8 properties is low, despite the overall rental rate being acceptable, then this could limit your ability to find tenants eligible for Section 8. In such a scenario, relying solely on Section 8 for tenancy may not be advisable.

In conclusion, while the market rent is favorable, the key issue lies in the alignment between FMR and the debt service on a high-value property. If your investment strategy does not strictly rely on Section 8 tenants, then the higher market rent and reasonable demand suggest Payson, AZ, could be a viable location. However, if your goal is to exclusively target Section 8 tenants, the FMR may not sufficiently cover the costs associated with a property priced at $446,638.

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.