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 classification of ZIP code 85638 hinges on analyzing its financial metrics against the backdrop of Section 8 housing opportunities. The Fair Market Rent (FMR) for ZIP 85638 in fiscal year 2024 is set at $910. This figure is notably higher than the market rent of $668, indicating a potential for higher yields when properties are leased through Section 8. However, the median home value in the area is $236,117, which suggests that the investment capital required for flipping or purchasing properties is substantial.
Regarding stability, the ZIP code shows that approximately 20.7% of residents are renters, a metric that can be indicative of the demand for rental housing. While the average days on market (DOM) for homes is not available, the median household income is $37,604. This income level is crucial because it influences the ability of tenants to maintain stable tenancy, assuming they qualify for Section 8 based on income criteria.
Given these figures, ZIP 85638 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The higher FMR compared to market rent provides a solid basis for predictable returns on investment, particularly for those willing to participate in the Section 8 program. However, the relatively low percentage of renters and the absence of DOM data suggest that the market is not highly volatile, nor does it exhibit signs of rapid turnover that would characterize a flip-style market.
Landlords and small-portfolio investors should consider the robust yield from Section 8 rentals combined with the moderate stability offered by the ZIP code's income levels and rental percentages. These factors make 85638 an attractive option for those seeking consistent cash flow without the risks associated with high-turnover markets.
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.