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 Section 8 housing analysis for ZIP code 85632 reveals a significant gap between the Fair Market Rent (FMR) set by the government and the actual market rent observed in the area. For fiscal year 2024, the FMR in ZIP 85632 is $910, while the Census American Community Survey (ACS) indicates that the market rent stands at $964. This means there is a $54 difference, or approximately a 5.6% shortfall, between what landlords can charge and what the government will reimburse through vouchers.
This discrepancy poses a challenge for landlords and small-portfolio investors, as it requires them to absorb the difference between the FMR and the market rent. Given that only 11.1% of residents are renters, and the median home value is $248,136 with a median income of $52,917, it's evident that the rental market is relatively small compared to homeownership. However, the rental market still plays a crucial role in providing affordable housing options.
Landlords who choose to participate in the Section 8 program must understand the financial implications. By accepting voucher tenants, they are effectively agreeing to rent their properties at a rate lower than the open-market price. This can be seen as a trade-off between yield and social impact. While the yield might be slightly lower due to the reimbursement being less than the market rent, the consistent and guaranteed payment from the government can provide a stable income stream. Additionally, the tenant selection process under the Section 8 program often includes background checks and other measures that can reduce the risk of problematic tenants.
In summary, the gap between the FMR and market rent in ZIP 85632 is a key consideration for landlords and small-portfolio investors. Accepting Section 8 voucher tenants means renting at a rate that is $54 below the market average, which could affect overall portfolio yields. However, the benefits of a stable tenant base and reduced vacancy rates should also be factored into the decision-making process.
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.