Location: Tucson, AZ | Metro: Tucson, AZ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
U.S. Census Bureau data (2024)
To integrate ZIP 85639 into a Section 8 portfolio strategy, one must consider the unique characteristics of the area, particularly its alignment with either cash-flow stability, appreciation potential, or diversification benefits. Given the available data, ZIP 85639 is best suited as a diversifier. This classification is supported by the following analysis:
The Family Monthly Rent (FMR) for ZIP 85639 in fiscal year 2024 is set at $1340. However, without specific market rent data or median home values, it's challenging to assess whether this ZIP code can serve as a cash-flow anchor. The lack of data on price-cut shares and days on market (DOM) also prevents a definitive conclusion on its potential as an appreciation play.
Instead, the ZIP code stands out as a diversifier due to its significant renter population share of 65.7%. This high percentage indicates a robust demand for rental properties, which is crucial for maintaining steady occupancy rates and cash flow. Additionally, the median income in ZIP 85639 is $39,333. This figure suggests that residents are likely to rely heavily on government assistance programs like Section 8, making the ZIP code an ideal location for properties aimed at tenants using such vouchers.
A portfolio that includes ZIP 85639 would benefit from the consistent income stream provided by the high number of renters who qualify for Section 8 assistance. This can be particularly advantageous during economic downturns when other types of investments might suffer. Furthermore, the concentration of lower-income individuals means that the demand for affordable housing is likely to remain stable, reducing the risk of vacancy and ensuring reliable cash flow.
In summary, ZIP 85639 should be considered as a diversifier within a Section 8 portfolio strategy. Its large renter base and median income level align well with the goals of attracting tenants who utilize Section 8 vouchers, thus securing a dependable revenue source.
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.