Location: Sierra Vista-Douglas, AZ | Metro: Sierra Vista-Douglas, AZ MSA
| 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 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 85605, located within the Sierra Vista-Douglas, AZ MSA, presents a unique opportunity for investors. The HUD Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $910. This figure stands in stark contrast to the reported market rent of $610 based on Census ACS data, indicating that voucher tenants can significantly cashflow at the FMR rate. Landlords in this region should expect a positive cashflow scenario when renting to voucher holders, as the difference between the HUD FMR and the actual market rent is substantial.
The median home value in ZIP 85605 is not available, which makes it challenging to derive a precise rent-to-price ratio. However, the absence of this data does not detract from the potential profitability of the rental market. The high FMR relative to the market rent suggests that voucher tenants can afford to pay above-market rates, making this an attractive option for landlords seeking stable income sources.
Additionally, the median days on market (DOM) and the percentage of homes that require price cuts are also not available. While these metrics are typically important for understanding the rent-versus-buy dynamics, the primary focus for Section 8 investors in this area should be on the strong cashflow potential offered by the discrepancy between HUD FMR and local market rents.
The strongest angle for investors in ZIP 85605 is undoubtedly the cashflow. Given the significant gap between the HUD FMR and the market rent, landlords can achieve positive cashflow even with standard units, let alone premium ones. This makes the area particularly appealing for those looking to generate consistent income through rental properties.
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.