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 | $880 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $229,168 | 0.55% | F |
| 3BR | $1,760 | $266,169 | 0.66% | D |
| 4BR | $1,800 | $344,112 | 0.52% | F |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP code 85648, located in Rio Rico, Arizona, comes with several notable risks that must be carefully considered. Tenant turnover is a significant concern, as the market rent of $1,535 stands above the Fair Market Rent (FMR) of $1,400 for fiscal year 2026 in the metro area. This discrepancy suggests a higher likelihood of tenants seeking more affordable housing options, leading to increased turnover rates.
Vacancy exposure is another critical risk factor. The days on market (DOM) data is currently unavailable, which makes it challenging to predict how long a property might remain vacant between tenants. This uncertainty can lead to financial strain, especially if there are extended periods without rental income.
Deferred maintenance exposure is also substantial. With a typical home value of $271,087 and a median income of $61,519, landlords should anticipate the need for regular repairs and maintenance. Tenants receiving Section 8 vouchers may have limited resources for such expenses, placing the burden squarely on the landlord. This can result in unexpected costs and potential delays in addressing property issues.
Despite these risks, there are factors that mitigate the overall investment risk. The renter share in the area is relatively high at 14.9%, indicating a dense population of renters. High renter density typically correlates with greater demand for housing vouchers, which can help stabilize occupancy rates. Landlords can benefit from a steady stream of potential tenants who qualify for Section 8 assistance.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.