Location: Santa Cruz County, AZ | Metro: Santa Cruz County, AZ
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 | $920 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,860 |
| 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 | $1,860 | $458,042 | 0.41% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 85624 hinges on the analysis of its yield and stability metrics. With a Fair Market Rent (FMR) of $1,070 for the fiscal year 2024, compared to the market rent of $833, it suggests a relatively higher yield potential. The FMR is a benchmark used by HUD to determine the maximum rental assistance payment for Section 8 vouchers, and a higher FMR indicates that tenants receiving assistance can afford higher rents, which is beneficial for landlords.
On the other hand, the median home value in ZIP 85624 stands at $399,902. This figure is significant when considering the investment cost and potential resale value. A higher home value generally correlates with a more stable area, but it also means that the initial investment for purchasing properties will be substantial.
The stability of the market is influenced by the percentage of renters, which is 38.0% in this case. While this percentage is not negligible, it is lower than what might be expected in highly transient areas, indicating a moderate level of tenant stability. The lack of data on the average days on market (DOM) for rentals does not provide insights into how quickly properties can be leased, which could affect cash flow consistency.
Average household income in the area is $56,053. This figure is critical as it reflects the economic health of the residents and their ability to pay rent. Higher incomes typically correlate with better tenant reliability and less risk of default. However, with an income figure of $56,053, there's a moderate concern regarding tenants' financial capacity to sustain rental payments over the long term.
Based on these figures, ZIP 85624 appears to offer a balance between yield and stability. It is not a high-yield/low-stability flip-style market because the rent-to-home-value ratio is not extreme enough to suggest rapid turnover or flipping activity. Instead, it leans towards being a steady-cashflow zone due to the reasonable rent premiums and moderate tenant stability. However, the relatively low income levels introduce some cautionary notes, suggesting that while steady cash flow is likely, there should be careful tenant screening to ensure reliable payments.
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.