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 analysis of ZIP code 85606 reveals a unique blend of yield potential and market stability that could be attractive to both landlords and small-portfolio investors. The Federal Market Rent (FMR) for FY 2024 is set at $940, which is higher than the local market rate of $896. This indicates a slight premium for federally subsidized housing units, suggesting a moderate yield advantage.
However, the median home value in the area stands at $243,789, which is a significant figure indicating a relatively stable housing market. Home values are often a key indicator of overall economic stability and can suggest a lower risk of rapid price depreciation.
The percentage of renters in the area is 14.4%, which is notably low. A low rental rate might imply fewer available tenants, potentially affecting occupancy rates and cash flow. However, this figure must be considered alongside the income levels in the area, which average $59,306 per household. While the income level is not exceptionally high, it does provide a reasonable buffer for maintaining rental payments.
The lack of data on days on market (DOM) makes it challenging to assess the speed at which properties can be rented out or flipped. Typically, a lower DOM would indicate a faster-moving market, which could be beneficial for flipping properties but less so for long-term rentals.
In summary, ZIP 85606 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The slightly higher FMR compared to the local market rate suggests a modest yield advantage, while the median home value and average household income figures support a degree of stability. The low percentage of renters is a cautionary note but does not necessarily negate the potential for steady cash flow given the other factors present.
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.