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 Section 8 real estate in ZIP 85610, which includes the town of Elfrida, Arizona, reveals a significant gap between the Federal Market Rent (FMR) and the actual market rent. The FMR for ZIP 85610 in fiscal year 2024 is set at $910, while the Census ACS reports the market rent at $568. This creates a $342 difference, or approximately 60%, between what landlords can charge under the Section 8 program and the current market rate.
Given that the FMR exceeds the market rent, it is clear that voucher tenants represent a yield play for landlords and small-portfolio investors. By accepting Section 8 vouchers, landlords can secure rental income that is higher than the typical market rate, thereby increasing their cash flow and property yields. This is particularly advantageous in a region where only 25.6% of residents are renters, indicating a smaller pool of potential tenants and the importance of maximizing rental revenue.
The median home value in ZIP 85610 is $204,087, and the median household income stands at $34,375. These figures underscore the financial challenges faced by many renters, making government assistance through the Section 8 program indispensable. For landlords, the decision to participate in the Section 8 program should be seen as a strategic move to capitalize on the higher FMR payments, which are guaranteed by the government.
However, there are operational considerations. Landlords must adhere to HUD standards and undergo regular inspections, which can add administrative costs and time. Despite these, the financial benefit of receiving $910 per month in voucher assistance, when the market rent is $568, makes the Section 8 program an attractive option for increasing rental income in ZIP 85610.
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.