Location: Tucson, AZ | Metro: Tucson, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
U.S. Census Bureau data (2024)
The analysis for ZIP Code 85633, located in Sasabe, Arizona, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 85633 in fiscal year 2024 is set at $1340, which serves as the benchmark for federal housing assistance programs. However, the market rent data is currently unavailable, indicating a potential reliance on FMR for rental pricing in this area.
In ZIP 85633, where 86.4% of the population are renters and the median household income is $21,000, the FMR plays a crucial role in determining the affordability of housing for low-income families. This ZIP Code lacks a median home value figure, suggesting that it is predominantly a rental market. Given the high percentage of renters and the low median income, the FMR effectively dictates the rental price ceiling for those receiving housing vouchers.
If the FMR exceeds the market rent, as it often does in low-demand areas, landlords can leverage this situation to generate higher yields. Voucher tenants ensure a steady stream of income, backed by government guarantees, making this a reliable investment strategy. Conversely, if the market rent surpasses the FMR, landlords accepting voucher tenants must absorb the difference, which could result in lower net returns compared to open-market rates.
The absence of specific market rent data complicates direct comparison but underscores the importance of FMR in setting expectations for rental income. Landlords should be aware that while voucher tenants provide consistent income, they also come with regulatory requirements and potential administrative overhead.
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.