Location: Sierra Vista-Douglas, AZ | Metro: Sierra Vista-Douglas, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,310 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 85613 might have several concerns regarding the feasibility of renting properties under the Section 8 program. Here's a breakdown addressing those specific issues.
Objection 1: Will Fair Market Rent (FMR) of $1510 for ZIP 85613 in fiscal year 2024 cover the mortgage on a home?
The answer to this depends on the specifics of the property and the mortgage terms. The FMR of $1510 represents the maximum amount that a landlord can charge for a rental unit under the Section 8 program. However, without knowing the average home price and typical mortgage rates in ZIP 85613, it's impossible to definitively state whether this will cover the mortgage. Investors should consult local real estate listings and mortgage calculators to determine if a property's monthly mortgage payment is below this threshold.
Objection 2: Is there enough renter demand at 100.0%?
The 100.0% occupancy rate suggests that there is strong demand for rentals in ZIP 85613. This indicates that the market is robust and willing to absorb rental units, including those offered through the Section 8 program. However, it's important to note that while overall demand appears high, the competition for tenants using Section 8 vouchers can be fierce. Landlords should be prepared to meet the eligibility criteria and requirements set by the housing authority to ensure they can participate effectively in this program.
Objection 3: Will vouchers keep pace with $1,628 market rents?
The FMR of $1510 is lower than the current market rent of $1,628. This discrepancy means that landlords participating in the Section 8 program might not receive the full market rent for their properties. The gap between FMR and market rent could lead to financial strain, especially if maintenance costs or other expenses rise. It's crucial for landlords to consider this potential shortfall when evaluating the profitability of renting under Section 8. While vouchers aim to provide affordable housing, they do not always reflect the full market value, particularly in areas where the cost of living has increased significantly.
In summary, while ZIP 85613 shows promising signs of rental demand and the potential for stable income, investors must carefully evaluate the specifics of their properties against the FMR and market rent to make informed decisions. The data highlights the need for thorough research and planning before committing to the Section 8 program.
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.