Location: Tucson, 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 | $1,470 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,920 |
| 4 Bedrooms | $3,320 |
| 5 Bedrooms | $3,851 |
| 6 Bedrooms | $4,313 |
| 7 Bedrooms | $4,658 |
| 8 Bedrooms | $4,891 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,110 | $343,680 | 0.61% | D |
| 3BR | $2,920 | $367,492 | 0.79% | D |
| 4BR | $3,320 | $420,784 | 0.79% | D |
| 5BR | $3,851 | $461,630 | 0.83% | C |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 85641 in Vail, Arizona, must be carefully considered. Firstly, tenant turnover could pose a significant challenge. The market rent stands at $2,067, while the Fair Market Rent (FMR) for FY 2024 is set at $2,010. This narrow margin between market and FMR rates can lead to frequent tenant changes, as voucher holders may struggle to cover the difference, resulting in financial instability for landlords.
Vacancy exposure is another critical issue. With an average Days on Market (DOM) of 65 days, landlords face a higher likelihood of prolonged vacancy periods. This extended time frame can result in significant lost revenue and increased costs associated with property maintenance and marketing efforts to attract new tenants.
Deferred maintenance poses a substantial risk due to the typical home value of $407,194 and the median income of $131,164. Landlords may find themselves responsible for covering the gap when necessary repairs exceed the income levels of their tenants, leading to unforeseen expenses that can strain cash flow and profitability.
However, these risks are somewhat mitigated by the high renter density in the area. The 5.9% renter share indicates a concentrated population of potential voucher holders, which typically translates into a robust demand for affordable housing. This high concentration of renters can provide a steady stream of applications, reducing the impact of vacancy exposure and making it easier to fill units promptly.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 85641 is moderate.
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.