Location: Santa Cruz County, AZ | Metro: Tucson, 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 | $1,050 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,090 | $539,327 | 0.39% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 85637, located in Santa Cruz County, Arizona, reveals several key insights. The HUD Fair Market Rent (FMR) for the area is set at $1830 for FY 2024. However, the lack of current market rent data makes it challenging to directly compare the FMR to what tenants might pay on the open market. Based on the available HUD FMR, voucher tenants in this area will generally cashflow at FMR levels, assuming they receive the full amount.
To derive the rent-to-price ratio, we use the median home value of $571,047. This figure suggests that the rental market is competitive, given the high property values. A conservative estimate of the annual rent would be around 1% of the median home value, which amounts to approximately $5,710 per month. This means the monthly rent would be roughly $475.83, significantly lower than the FMR. Therefore, voucher tenants will likely only cashflow in premium units or with some level of owner contribution to make up the difference between the FMR and the actual market rent.
The absence of day median DOM (Days on Market) and price-cut share data indicates a potentially stable market where homes are not typically overpriced or subject to frequent reductions. This stability can be beneficial for long-term investment strategies, as it reduces the risk of significant price fluctuations.
The strongest investor angle in ZIP 85637 is appreciation. Given the high median home value and the potential for continued growth in property values, investors should focus on acquiring properties that have the potential to appreciate over time. While cashflow may be limited due to the discrepancy between market rents and FMRs, the long-term gains from property appreciation could outweigh short-term losses.
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.