Location: Tucson, AZ | Metro: Phoenix-Mesa-Chandler, AZ MSA
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 | $1,080 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $169,885 | 0.81% | C |
| 3BR | $1,870 | $267,393 | 0.7% | D |
| 4BR | $2,120 | $325,338 | 0.65% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 85602, located in Benson, Arizona, hinges on a detailed analysis of its yield and stability metrics. The yield, measured by comparing the Fair Market Rent (FMR) of $1570 for the fiscal year 2024 against the local market rent of $786, indicates a potential for higher rental income compared to the average market rate. This suggests a relatively high-yield market, where landlords can capitalize on the disparity between FMR and actual market rents.
However, the stability of the area is less robust. With only 27.0% of residents being renters, the demand for rental properties is moderate at best. The lack of data on the number of days a property remains on the market (DOM) and the median household income of $53,008 further complicates the assessment of stability. These figures imply that while there is some rental activity, it may not be as consistent or reliable as in areas with higher percentages of renters and more comprehensive data on rental trends.
Additionally, the median home value of $252,712 provides context for the overall economic landscape but does not directly correlate with rental stability. In summary, ZIP 85602 presents an opportunity for high-yield returns due to the favorable FMR-to-market rent ratio. However, the lower percentage of renters and limited data on rental stability suggest that this is not a steady-cashflow zone but rather a market with moderate stability. Landlords and small-portfolio investors should consider these factors carefully before making investment decisions in this area.
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.