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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $141,243 | 0.81% | C |
| 3BR | $1,580 | $208,789 | 0.76% | D |
| 4BR | $1,900 | $246,974 | 0.77% | D |
U.S. Census Bureau data (2024)
910 is the Fair Market Rent (FMR) for ZIP 85607 in Douglas, AZ, for fiscal year 2024, indicating the maximum rental amount allowed for Section 8 participants. However, the market rent stands at 763 dollars according to the Census American Community Survey, suggesting that landlords could potentially offer competitive rates while still being within Section 8 guidelines. The median home value in the area is 174,921 dollars, which is relatively low compared to other parts of Arizona, making it an attractive investment opportunity for those looking to enter the housing market at a lower threshold. With a renter share of 36.1%, there is a significant portion of the population already accustomed to renting, providing a stable demand for rental properties. The median income in Douglas, AZ, is 43,351 dollars, which is below the state average, but still sufficient for many families to qualify for Section 8 assistance. Despite the lack of data on days on market (DOM), the price-cut share is only 0.1%, implying that once listed, properties are likely to sell without needing significant price adjustments. This combination of factors—affordable FMRs, low median home values, a substantial renter base, and stable property sales—makes ZIP 85607 a favorable location for landlords and small-portfolio investors interested in Section 8 participation.
Investors should note that the gap between the FMR and market rent provides a buffer that can help cover maintenance costs and other expenses associated with rental properties. Furthermore, the low median home value suggests that the initial investment required to purchase properties in Douglas, AZ, is manageable, particularly for those with limited capital. The stable demand for rentals, evidenced by the high renter share and low price-cut share, indicates that vacancy rates are likely to be minimal, ensuring a steady stream of rental income. In conclusion, the data supports a positive outlook for Section 8 participation in ZIP 85607, making it a worthwhile investment for those seeking a stable and affordable rental market.
Verdict: ZIP 85607 is a solid choice for Section 8 investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.