Section 8 Fair Market Rent (FMR) for ZIP 85636 - 2027

FY 2027 Fair Market Rent Rates

The investment landscape for Section 8 properties in ZIP code 85636 presents several challenges that must be carefully considered. Tenant turnover is a significant concern, especially when comparing the market rent to the Fair Market Rent (FMR) set at $1070 for FY 2024. While specific market rent data is not available, landlords can expect higher turnover rates if their rental prices exceed the FMR, leading to potential financial instability.

Vacancy exposure is another critical issue. The lack of data on Days on Market (DOM) makes it difficult to predict how long a property might remain vacant between tenants. This uncertainty increases the risk of prolonged periods without rental income, which can significantly impact cash flow and profitability.

Deferred maintenance is also a risk factor. Without specific information on the typical home value and median income in ZIP 85636, landlords must be prepared for the possibility that tenants may not have the resources to maintain the property to a high standard. This could lead to increased repair costs and maintenance demands, further straining the budget.

However, these risks are tempered by the high concentration of renters in the area, indicated by the unspecified percentage of the renter share. High renter density typically translates into greater demand for housing vouchers, making it easier to find qualified tenants who can afford to pay the required portion of their rent through Section 8 assistance.

Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 85636.

Data Sources: FMR data from HUD (2027).

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.