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 | $830 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $228,627 | 0.69% | D |
U.S. Census Bureau data (2024)
The median income in ZIP 85616 stands at $51,813, which places significant constraints on household budgets when it comes to housing expenses. The market rate for rent, according to the Census ACS, is $958 per month. This means that even at market rates, a substantial portion of a household's income would be dedicated to rent, leaving little for other essential expenses.
Comparatively, the Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD) for ZIP 85616 in fiscal year 2024 is slightly higher at $980 per month. This indicates that the voucher payment standard closely aligns with the market rate, offering landlords a stable and predictable income stream that matches current market conditions.
In ZIP 85616, where 26.0% of the 4,941 residents are renters, the affordability gap between median income and rent costs is evident. Households earning the median income would struggle to cover their rent at either the market rate or the voucher rate without significantly compromising other financial obligations. This tight budget situation among renters could intensify competition among landlords who accept vouchers, as these units provide a reliable source of rental income for tenants who might otherwise be unable to afford market-rate rents.
For landlords considering whether to accept Section 8 vouchers or focus on cash-paying tenants, the takeaway is clear. While cash-paying tenants might offer flexibility and potentially higher rents, the voucher system ensures a consistent and government-backed income that is close to market rates. In a ZIP code where many residents face an affordability challenge, accepting vouchers can secure a steady tenant base and mitigate the risks associated with vacancy and unpaid rent.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.