Location: Sierra Vista-Douglas, AZ | Metro: Sierra Vista-Douglas, 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 | $800 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $244,116 | 0.47% | F |
| 3BR | $1,580 | $254,276 | 0.62% | D |
U.S. Census Bureau data (2024)
The market in ZIP 85603, Bisbee, Arizona, is characterized by a strong rental sector and relatively stable pricing conditions. The Fair Market Rent (FMR) for the area stands at $970 for the fiscal year 2024, while the market rent as per the Census American Community Survey (ACS) is slightly lower at $859. This suggests that the rental market is competitive but not over-saturated, maintaining a healthy balance between landlord and tenant interests.
A key indicator of market health is the low price-cut share of 0.1%, which implies that property values are holding steady and there's little need for sellers to reduce their asking prices. This stability can be attributed to the median home value of $225,382, indicating a moderate price point that could attract both buyers and investors looking for a good return on investment without the volatility often seen in rapidly appreciating markets.
The N/A-day Days on Market (DOM) figure might suggest that sales activity is limited, possibly due to the unique nature of Bisbee's real estate market or seasonal fluctuations. However, this should be interpreted with caution as it doesn't provide a complete picture of the market's liquidity.
Bisbee has a 28.4% renter share, which is significant and indicates a notable portion of the population is renting rather than owning homes. This high percentage of renters can exert long-term pressure on housing costs, as a substantial number of residents will continue to seek rental properties. It also means that there is an ongoing demand for rental units, which can be beneficial for landlords and small-portfolio investors who are willing to manage properties effectively.
In summary, the market in ZIP 85603 is dynamic yet stable, with a slight edge towards rental demand over home ownership. The low price-cut share and moderate median home value suggest that the market is balanced, neither seeing a surplus of homes nor a shortage that would drive up prices significantly. For investors, the high renter share presents opportunities in the rental sector, but they must be prepared for a market that is likely to experience steady growth rather than explosive appreciation.
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.