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)
ZIP 85550, located in Graham County, Arizona, serves as a strong cash-flow anchor within a Section 8 portfolio strategy. The primary reason for this designation is the significant spread between the Fair Market Rent (FMR) set by HUD and the actual market rent for the area. For fiscal year 2026, the FMR for the metro area is established at $1,270, while the average market rent stands at only $535. This discrepancy means that landlords participating in the Section 8 program can secure rental income that far exceeds local market rates.
The higher guaranteed rents through Section 8 vouchers ensure a stable and predictable cash flow, which is crucial for maintaining financial health in a portfolio. Since the median home value is not available, it suggests that homeownership may not be as prevalent compared to renting, further emphasizing the importance of rental properties in this area. With a 40.2% renter share, there is a substantial demand for rental units, making ZIP 85550 an ideal location for landlords looking to capitalize on steady tenant income.
The guaranteed nature of Section 8 payments also mitigates risks associated with non-payment or delinquency, which can be common in areas with lower median incomes such as ZIP 85550, where the median income is $51,491. This stability is particularly valuable given the lack of data on home appreciation and days on market (DOM), indicating that appreciation plays might not be as viable in this region.
In conclusion, ZIP 85550 functions best as a cash-flow anchor due to the favorable spread between the FMR and market rent, coupled with a high demand for rental housing and the predictability of Section 8 voucher payments. Landlords and small-portfolio investors should consider this ZIP code for its ability to provide consistent and above-market rental income, thereby enhancing their overall investment strategy.
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.