Location: Santa Cruz County, AZ | Metro: Santa Cruz County, AZ
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 | $1,090 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $436,253 | 0.36% | F |
| 3BR | $2,160 | $582,762 | 0.37% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 85646, Tubac, Arizona, reveals a challenging but potentially rewarding environment. The HUD Fair Market Rent (FMR) for the Santa Cruz County metro area, as of fiscal year 2026, is set at $1,690 per month. In contrast, the Census ACS data indicates that the average market rent in this region is $2,295 per month. This significant gap between the HUD FMR and the actual market rent suggests that landlords accepting Section 8 vouchers will experience negative cash flow on standard units, unless they can secure premium units with higher rents.
To further understand the investment landscape, consider the median home value of $503,775 in ZIP 85646. Dividing the median market rent by the median home value yields a rent-to-price ratio of approximately 0.45%, which is quite low. This ratio implies that the area is more suited for homeownership rather than renting, given the relatively high cost of homes compared to rental income. However, for investors focused on long-term strategies, this could mean stability and potential appreciation in property values over time.
Regarding the day median DOM (Days on Market) and the price-cut share, both metrics are listed as N/A. This absence of data makes it difficult to assess the typical time frame for selling properties and the frequency of price reductions. Nevertheless, these factors are less critical when considering the cash flow dynamics of Section 8 investments, which are primarily rental-focused.
In conclusion, the strongest angle for Section 8 investors in ZIP 85646 is likely stability. While cash flow might be modest due to the lower HUD FMR, the potential for property value appreciation and the consistent demand for affordable housing provide a solid foundation for long-term investment success.
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.