Location: Graham County, AZ | Metro: Gila County, AZ
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 85542 under the Section 8 program are significant. Tenant turnover is a critical issue, with market rents at $622 compared to the Federal Market Rent (FMR) of $1,270 for fiscal year 2026 in the metropolitan area. This disparity suggests that tenants may struggle to find housing outside the program, leading to frequent moves and increased administrative burden for landlords.
Vacancy exposure is another concern. The average days on market (DOM) is not available, which makes it difficult to predict how long a unit might remain vacant between tenants. This uncertainty can impact cash flow negatively during periods when units are unoccupied.
Deferred maintenance poses a risk as well. With a median income of $29,022, residents in ZIP 85542 may have limited funds to cover unexpected repairs or maintenance costs, potentially leaving landlords to shoulder these expenses. Without knowing the typical home values in the area, it's challenging to gauge the overall financial health of the local housing stock.
However, there are mitigating factors. The renter share of the population is 45.7%, indicating a robust demand for rental properties. High renter density often correlates with higher demand for Section 8 vouchers, which can provide a steady stream of tenants who are committed to paying their rent through the voucher program.
In conclusion, the risks associated with Section 8 investments in ZIP 85542 are moderate. While tenant turnover and vacancy exposure present challenges, the strong renter base provides a buffer against prolonged vacancies and ensures a consistent pool of potential tenants.
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.