Location: Graham County, AZ | Metro: Graham County, AZ
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,510 | $291,421 | 0.52% | F |
U.S. Census Bureau data (2024)
The Section 8 program analysis for ZIP code 85546 reveals a significant opportunity for landlords and small-portfolio investors due to the gap between the Fair Market Rent (FMR) and the actual market rent. The FMR set at $1,200 for the fiscal year 2026 exceeds the current market rent of $981, as reported by the Census Bureau's American Community Survey (ACS). This discrepancy amounts to a difference of $219 per month, or approximately 22.3%.
This situation makes ZIP 85546 a prime location for yield plays. Landlords who accept Section 8 vouchers can benefit from higher rents compared to the open market, without the risk of non-payment that often accompanies low-income tenants. The voucher system guarantees payment up to the FMR, which is notably above what most tenants would pay in the current market. This advantage is further amplified by the fact that only 24.3% of residents in this area are renters, indicating a smaller pool of potential tenants and thus a higher demand for rental properties that qualify under the Section 8 program.
The median home value in ZIP 85546 stands at $285,927, suggesting a relatively stable neighborhood where property values are unlikely to plummet. However, the median income of $61,832 indicates that many residents may struggle to afford market-rate rents, making them ideal candidates for Section 8 assistance. By accepting voucher holders, landlords can fill vacancies that might otherwise remain empty due to the high percentage of homeowners and lower income levels among renters.
In summary, the gap between FMR and market rent in ZIP 85546 presents a clear yield advantage for landlords willing to participate in the Section 8 program. With a substantial portion of the population potentially qualifying for vouchers, this ZIP code offers a reliable source of tenancy and income stability, especially given the current economic conditions and the need for affordable housing solutions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.