Location: Tucson, AZ | Metro: Tucson, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
To integrate ZIP 85601 into a Section 8 portfolio strategy, consider it primarily as a diversifier. The zip code's characteristics suggest that while it may not offer the highest potential for cash flow or rapid appreciation, it can serve as a valuable component for broadening your investment base.
The Federal Market Rent (FMR) for ZIP 85601 in fiscal year 2024 is set at $1340. This figure is critical for landlords participating in the Section 8 program, as it dictates the maximum rental amount that can be charged for a unit. Given the lack of available data on market rents and median home values, it's challenging to assess the immediate cash flow benefits or risks. However, the FMR does provide a stable, government-backed income stream, which can be beneficial for maintaining consistent cash flow.
ZIP 85601 has a renter share of 19.8%, indicating a notable portion of the population that relies on rental housing. Coupled with a median income of $30,542, this suggests that there is a steady demand for affordable housing options, making it suitable for Section 8 tenants who often have lower incomes. The presence of a significant number of renters can ensure a stable occupancy rate, reducing the risk of vacancies and providing reliable rental income.
While the zip code does not provide explicit data on appreciation metrics such as price-cut shares or days on market (DOM), the combination of a stable tenant pool and a government-supported rental rate can contribute to long-term property value stability. In an environment where other parts of the market may fluctuate, having properties in ZIP 85601 can act as a buffer against volatility.
As a diversifier:
The 19.8% renter share and median income of $30,542 support a robust demand for affordable rentals, aligning well with the goals of the Section 8 program.
The FMR of $1340 offers a predictable and secure rental income, crucial for managing a diversified portfolio effectively.
Including ZIP 85601 in your portfolio can help balance out investments in areas with higher appreciation potential but also greater risk.
Given these points, ZIP 85601 should be viewed as a strategic addition to a Section 8 portfolio, enhancing diversification and offering a dependable source of income.
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.